Temporary Stays, Lasting Questions: Lease Vs. License In Airbnb Rentals

Aayush Ahuja, O.P. Jindal Global University, Jindal Global Law School

ABSTRACT

This paper examines the legal nature of Airbnb accommodations in India, analyzing whether they align more closely with lease or license agreements. It begins by exploring the distinctions between leases and licenses under Indian law, emphasizing the importance of intention, substance, and exclusive possession in classifying agreements. The paper also evaluates Airbnb’s terms of service, judicial precedents, and comparative approaches in other jurisdictions to assess the rights and obligations of parties involved in Airbnb bookings. While Indian courts prioritize the intention of the parties, the unique characteristics of Airbnb stays, such as long-term occupancy and exclusive possession, complicate this determination. The paper concludes that, given the judiciary’s current emphasis on intention, most Airbnb arrangements in India are likely to be classified as licenses. It highlights the need for legislative clarity to address ambiguities in the legal treatment of longer stays and ensure balanced protections for both hosts and guests.

Keywords: Airbnb, Lease, License.