Thank you for your blog post, esp this one https://www.indiancooperative.com/cooperative-coffee-shop/keeping-paying-guest-while-self-occupying-the-house/
(1) My Mumbai apartment is lying empty and I now have an offer to lease it to a lady who will run it as a hostel for students. She is agreeable to register a Leave and License Agreement in her indiviual name. Is there an issue to rent out flat to a student hostel manager who in turn collects contribution from single studentsand passes on to the flatowner?
(2) Can society object this as commercial activity on part of flatowner/manager-tenant? Can a case be made that while the lady is doing this as a business, the nature of the use remains residential?
(3) Is this construed as sub-letting of residential premises? If so, is it allowed?
(4) Is there a law allowing or prohibiting hostels in MCGM?
(5) Alternatively, is it preferable to directly get into a registered agreement with the students themselves?
I C Naik
This is a “User-change” matter from the one possibly approved by BMC as a residential building. So running a commercial activity like “Hostel” will require at least two prior approvals namely the managing committee of the Society and BMC to amend the user in the approved plan. Assuming for a strange reason the Committee approves but the Society being a de-jure owner of the property (members are tenants themselves having special rights) will have to apply to BMC which itself is unlikely. If BMC is approached, normally No objections will be invited from other members where you might not succeed.
If it is manageable, better to grant leave-license directly to the Students for whom it will be a residence and not a hostel.
