Based on the Guidelines for Registration of Homestay Establishments 2025 issued by the Department of Tourism, Government of Karnataka. Tags like §5(3) point to the clause each rule comes from.
The two categories side by side
| Question | Homestay | Bed and Breakfast |
|---|---|---|
| Who lives there §2(i), §2(ii) | The owner, or their spouse or children | An agent or operator chosen by the owner |
| Treated as §2 | Non-commercial | Commercial |
| Size §2 | 1 to 6 rooms, 12 beds | 1 to 6 rooms, 12 beds |
| Rules §2(ii) | The 2025 homestay guidelines | Separate guidelines, to be issued |
| Utility and tax rates §5(2) | Domestic | Not covered by the homestay guidelines |
Why the difference matters
The benefits of homestay registration, domestic utility rates and no trade licence, follow from the idea that a homestay is an extension of a family’s home. That is why the owner’s family has to live there, why an owner of several houses can register only the one they live in, and why a rented or leased house cannot be registered at all.
If you own a house on the coast but live somewhere else
This is common in Udupi and Dakshina Kannada: a family house that sits empty while the family works in Bengaluru, Mumbai or the Gulf. Under the 2025 guidelines that house does not meet the homestay definition while nobody from the family lives in it, and having someone else run it makes it a Bed and Breakfast.
The Bed and Breakfast guidelines had not been issued when this guide was last reviewed. Until they are, ask the Assistant Director or Deputy Director of Tourism for your district how to proceed before you start taking guests.
Common questions
Can I run a homestay in Karnataka if I do not live there?
Not as a homestay. The 2025 guidelines require the owner or their spouse or children to live in the residence. If an agent or operator runs it instead, it falls under the Bed and Breakfast category, which is commercial and has separate guidelines.
Can the guest rooms be in a separate cottage?
Yes, if the cottage is on the same plot of land, meaning the same survey number, as the house the owner’s family lives in.
This guide explains the Karnataka government guidelines in plain language. It is not legal advice. The Department of Tourism can revise the guidelines at any time, so check the current version or ask the Assistant Director or Deputy Director of Tourism for your district before you apply.
Written by Excoka Hospitality, Homestay operations team, Udupi. First published .