Guest house in residential apartment building


Is it alright to let out our residential apartment in Visakhapatnam for running a Guest House?
 
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Retired employee.

If the corporation has notified the area as Residential, offering for guest house amounts to commercial activity.

Normally the Society may not permit for running a guest house where there are families.

First try to obtain permission from corporation and society, once they permit officially, there may not be any problem legally.

 
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Thanks for your inputs, Sri Prasad garu. With due permission from GVMC, the building was constructed to contain 2 shops and 1 flat on ground floor and 3 flats each on the remaining 3 upper floors. The ground floor flat is being used as a godown by the shop owner. All 3 flats on 1 floor have been taken on rent by a person, who is conducting guest house business out of 2 flats while the remaining (adjacent) flat is being used by the operator and his staff, to stay and run the business. Another owner is conducting coaching classes from his flat. And there is another owner, whose son uses the flat as an office. Association has no problem. In fact, it is these owners who are in helm. In view of heavy commercial activity, I don't feel like residing. When I put up for sale, not getting good offers for these reasons. In the light of the aforesaid circumstances, thinking of letting out my flat to this same guest house operator, provided I don't get into any legal hassles. Requesting for your further comments, please. 

 
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Retired employee.

Please go through permission granted for construction of building. If GVMC permitted it as commercial establishment, absolutely there is no problem with any one and you can obtain permission for such Guest House operation from Corporation (License) after paying prescribed fee and GST No...
 
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Sir,

As per GVMC-approved Ground Plan, the building is supposed to consist of parking area in cellar, 2 shops and 1 residential flat on ground (1st) floor and 3 residential flats each on the remaining 3 upper floors. The construction is in accordance and OC has also been received. All this happened about 8 years ago. As explained earlier, what was applied, approved, constructed and sold as residential flats are being used for commercial purposes - some by owners themelves and others by tenants. I am an owner of one residential flat and trying to get clarity on the legal aspects relating to letting it out to a person for conducting guest house business therefrom. I continue to remain property-owner and it is the tenant who would be operating the guest house under his name & style. The business risks and profits are to his account only. I will get the agreed amount of rent, irrespective of how the business performs. 

 
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Retired employee.

As you have obtained approval for residential purpose you have to explain the need for changing to commercial purpose and get approval.  You may explain in your application the present commercial nature of the building.

Later you can enter into lease agreement with a tenant specifically showing it as guest house, and you should insist that he should show the license from GVMC, basing on formal approval letter for lease.

Please contact your advocate, preferably standing counsel of GVMC, as his assistants will be taking up your cases and unauthorised supervision of his boss.

There is no further purpose in open forum discussions on sensitive issues.  

 
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Ok, thanks a lot, sir for the valuable inputs and guidance. 

 
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