The Complete Guide to Paying Guests & Sample PG Rent Agreement

Whether you’re a student or a young professional looking for accommodation, paying guest (PG) lodging can be an excellent option. However, it’s essential to understand the importance of a well-drafted sample PG rent agreement to protect yourself and ensure a hassle-free stay. In this blog, we will cover everything you need to know about sample PG rent agreements, from choosing a suitable PG to understanding the terms and conditions. Read on to make your PG experience a smooth and secure one.

Importance of PG Agreement

Paying guest lodging is frequently seen as a money-saving strategy for bachelors who cannot afford to rent a full home. These rent agreements for PG also give homeowners adequate room to accommodate more personal income who don’t have spare homes to rent.

The popularity of Paying Guest accommodation agreements is increasing in cities, making it a viable option for many. However, with this rise in popularity, there is also an increased risk of visitors being duped into paying hefty deposits and fees for numerous amenities that the owner may fail to deliver. To safeguard against such situations, anyone planning to stay in a paying guest property is advised to draft an agreement with the owner outlining all of the terms and conditions as a precautionary and safety measure.

Checklist Before Choosing a PG and Signing a Rent Agreement 

Regardless of the room’s size, it is advisable to prioritize accommodations with a well-thought-out and efficient design. Many rental properties are now focusing on incorporating clever designs that maximize space while catering to the requirements of contemporary consumers. While unfurnished rooms might initially appear more cost-effective than furnished ones, it is essential to consider the additional expenses associated with furnishing them. If you lack furnishings or have budget constraints for decor, opting for a furnished room would be a prudent choice to avoid unnecessary expenditures in the long run.
Read: Everything You Must Know about Settlement Deed

Make sure you have looked at the sample pg rent agreement before finalising a place where you can unwind and recharge after a long workday before.

Here are some tips on how to inspect a PG’s cleanliness amid the coronavirus outbreak;

• Several state governments have published guidelines for paying owners of vacation rental properties. No matter where you live, you must ensure that your PG is adhering to the regulations set down by the Karnataka government.
• Each paying guest’s identification (Aadhar card, passport, driver’s licence, etc.) should be on file with the proprietor of the PG accommodation.
• Amid the current COVID-19 concerns, it is crucial to ensure that the paying guest accommodations strictly adhere to the guidelines set by the government.

Sample of Paying Guest Agreement

The following information must be included in the paying guest rent agreement:

• Names of those who are involved
• Description of the assigned space
• Tenant and owner behaviour expectations
• Deposit sum
• Regular rent

You can customise, add further information, and remove or add new clauses to the sample pg rent agreement. Once the terms of the agreement are acceptable to you, you can publish it on stamp paper and have everyone sign the deed.

Most PG owners will need a security deposit for up to six months. Usually, they do this to avoid having to look for new renters in the middle of the process. Therefore, it’s crucial to enquire about these terms of service:

• Will I receive my security money refunded if I plan to quit the PG in the middle of my stay?
• After the lease period, will the overall security deposit be returned?
• How is the cost of losses determined, and how is the inventory of eligible damages determined?

After choosing the PG agreement form, complete it with the information listed. You can tweak, add more information, or remove or add more clauses if you want. Once you are satisfied with the agreement, reproduce it on stamp paper, get done with the stamp duty for paying the guest agreement and have all parties sign the deed. Additionally, two witness signatures are required.
Read: MCGM Property Tax 2024 – How to Pay BMC Mumbai Property Tax Online

Important Terms Rules and Regulations for Paying Guests 

Curfew And Restrictions on When to Use Amenities – Ensure to discuss curfew timings and amenity usage guidelines with the owner, especially if you have irregular schedules or specific requirements, like access to non-vegetarian food and communal facilities.

Guests’ Rights – Clarify guests’ rights with the owner, covering topics such as visitor policies, arrangements for parents’ visits, hours for friends’ visits, and guest dining arrangements, to avoid any misunderstandings or dissatisfaction.

Cleaning Routine – Demand regular housekeeping services. Although most PGs are eager to do this, you will ultimately be the one who lives in the room. Therefore, be sure to receive assistance on that front.

Various House Rules – Know the house regulations before you enter. They include fixed TV times, no guests, no non-vegetarian cuisine, no drinking or smoking, restrictions on the breakout area, and more. You should probably look for yet another Paying guest if it bothers you.

Create an Online Paying Guest Agreement

The preference for paying guests among young workers and students is growing. A PG offers them a setting that feels like home so they can thrive while living away from their hometown. While choosing a PG agreement in Mumbai or elsewhere in India, students often neglect the significance of signing a Paying guest housing agreement with the landowner, focusing instead on qualities like superb amenities, delicious food, high security, and more.
Read: Property Tax in Faridabad: Online Payment, Calculator & Expert Guide

However, by doing this, they may unknowingly expose themselves to potential risks, including hefty deposits and disputes with landlords. To ensure a secure arrangement, it is essential for students and young workers to be aware of the option of creating an online paying guest agreement, providing them with a legally-binding document that safeguards their interests.

Paying Guest Agreement Format 

BETWEEN

___________________________

AND

___________________________

Re: One room in Flat No. _______________________

AGREEMENT made at ________________ this ____________ day of _____________________ 2000 BETWEEN Mr. ___________________ hereinafter referred to as “the Owner” of the One Part AND (i) Mr. ____________________ and (ii) _____________________________ hereinafter referred to as “the Paying Guest” of the Second Part;

WHEREAS the Owner is seized and possessed of and is occupying Flat No.____ on the ______ floor of the building named and known as ___________ situated at ____________________ _____________;

AND WHEREAS the Paying Guest have requested the Owner to allow them use of one bedroom in the flat in the aforesaid premises for their own use only on a temporary basis on the terms and conditions hereinafter written.
Read: The Tenancy Act in India – A 10 Crore House being Rented for Rs.40?

NOW THIS AGREEMENT WITNESSETH:

1.      The Owner hereby agrees to permit the Paying Guest to use one bedroom in the aforesaid premises being Flat No._________ in _______________ situated at __________________________________________ together with the use of the attached bathroom, on paying guest basis.

2.      This Paying Guest Agreement shall be for a period of _________________ only commencing from ______________________.

3.      The Paying Guest shall pay an amount of __________________ (Rupees _____________________________________ only) for every quarter (Three months). The charges shall include the use of bathroom, and other incidentals and society charges. The Paying Guest have agreed to pay the entire electricity bill, less an amount of Rs.200/- (Rupees two hundred) per month.

4.      The Paying Guest have paid at the time of execution hereof a security deposit of Rs. ___________ (Rupees ___________________________________ only) which shall remain with the Owner free of interest, until the termination of this agreement, and shall be returned to the Paying Guest, subject to any deduction for payments due hereunder. The Paying Guest shall pay a further sum of Rs. _____________ (Rupees ______________________________ only) as Security Deposit on or before ______________.

5.      The Owner may allot to thePaying Guest any of the bedrooms in the said flat for the use of the Paying Guest and the Owner may change the allocation at any time during the pendency of the Agreement.

6.      The Paying Guest hereby specifically confirm and agree that they have no right whatsoever to the said premises nor shall claim to be tenant/sub-tenant or licensees nor shall claim any other right whatsoever in or to the said premises.

7.      It is clearly agreed and understood that the Paying Guest have not been given any key to the entrance door of the flat nor even to the room that is allocated to them for their temporary use from time to time.

8.      They Paying Guest may use the passages in the flat for access to the room and may use the kitchen for cooking their own food only provided that no disturbance whatsoever is caused to the use of the kitchen and passages and other portions of the flat by the Owner and his servants and others.

9.      The Paying Guest shall not cause any disturbance at any time and may permit guests or any outsider to enter the flat only with the permission of the Owner.

10.   In the event that the Paying Guest misuse any of the facilities in the flat or causes any disturbance or delays in making payment of the Paying Guest charges, this Agreement shall stand terminated forthwith and it is hereby specifically agreed and confirmed that the Owner shall be entitled to enter the room allocated to the Paying Guest for the time being and to remove all the belongings of the Paying Guest and dispose of them.

11.   This Agreement shall stand terminated immediately upon the expiry of the period mentioned hereinabove.

12.   The Paying Guest shall be responsible for any damage caused by them or by any other outsider who has entered the flat through them to the said flat and to any of the furniture, fixtures and equipment therein, reasonable wear and tear excepted.

IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands the day and year first hereinabove written.

SIGNED AND DELIVERED by the within- )

named MR. _________________________ )

in the presence of )

SIGNED AND DELIVERED by the within- )

named (i) ________________________ )

and (ii)____________________________ )

in the presence of)

————————————————————————————————————————-

R E C E I P T

Received this day the sum of Rs. _____________ (Rupees ______________________ only) by cheque bearing No. ____________ and Rs. ______________ (Rupees _________________________________________ only) by Cheque bearing No. _______________dated _____________ both drawn on _________________ Bank ___________________ Branch from Mr. ________________________ and Mrs._____________________________, the Paying Guests towards security deposit.

WE SAY RECEIVED

Mr. ___________________________

The above sample paying guest agreement format pdf but it can always be negotiated and put forward by the landowner in the sample pg rent agreement. 

PG Rules and Regulations By Government

Here are some common paying guest rules and regulations that you may encounter:

No Smoking or Drinking: 

Several PGs have strict rules banning smoking and drinking on the property. Often, this is done to encourage a smoke-free environment and prevent any potential problems between neighbours. 

Curfew and Visitor Policies: 

Curfews can be in effect at some PGs, requiring inhabitants to return to the premises within a specific time. Likewise, it could be forbidden to let visitors or guests stay for the night. 

Maintenance and Cleanliness: 

Residents are required to keep their rooms tidy, dispose of garbage properly, and not damage anything. 

Payment and Billing:

PG accommodations usually have specific rules and regulations regarding rent, security deposits, and billing. It’s important to be aware of the payment schedule, late fee policies, and refund procedures, if any. This will help avoid any misunderstandings or financial disputes down the line.

Code of Conduct:

PG accommodations have a code of conduct that outlines expected behaviour and mutual respect among residents. This may include guidelines on noise levels, use of common facilities, and respecting the privacy of fellow residents. Being mindful of these rules and regulations can foster a positive and inclusive living environment.

Inaccurate Information:

If inaccurate or partial information is provided, the PG accommodation will be cancelled.

Switching off the electrical appliances:

After leaving the rooms, guests are required to turn off the lights, fans, AC, and bathroom geyser to conserve electricity. 

No damage to the property:

Guests staying at the aforementioned premises shall be held responsible for any costs associated with damages to the property, including any harm done to furniture and fittings as a result of their negligence.

Harassment:

Ragging and bullying are strictly forbidden. Living in a PG comes with its own set of rules and regulations. It’s important to familiarise yourself with these PG rules and regulations and abide by them to ensure a pleasant living experience for yourself and your fellow residents. Remember to be respectful, responsible, and cooperative to create a harmonious living environment in your PG accommodation.

Cost of Paying Guest Agreement

Paying guest agreements in India are cost-effective and increasingly prevalent in today’s scenario. As paying guests become more informed, they recognize the importance of having an agreement to protect their rights and ensure security. After selecting a PG, the next crucial step involves establishing a paying guest agreement with the landlord. While some landlords may initially be hesitant to sign a contract, it’s essential to educate them about the benefits of doing so, assuring them of a mutually beneficial arrangement.

 The owner, as well as the paying guest, are both shielded from future legal disputes by a well-written sample PG rent agreement. It also makes sure that neither party deviates from the predetermined guidelines. The agreement for paying guests also serves as the paying guest’s evidence of local address. Additionally, it will confirm the rent you will pay the owner and the amenities he is required to give you.

In addition to the contractual expenses, paying guests should duly consider the essential inventory required for their PG accommodation. It is imperative to recognize that not all PG facilities offer the same level of amenities. For instance, while some PGs may provide only minimal furnishings, others may lack any provisions altogether. Conversely, certain accommodations may present themselves as temporary living arrangements. A prudent approach involves carefully assessing the amenities provided by each PG before making a decision.

If you’re about to move into a PG, be sure it has the basic specifications:

● Bed/mattress

● Table/desk

● Chair

● Cupboards

You should also list the items you’ll need to keep yourself clean and hygienic. It is advised to have your supplies on hand and to avoid sharing them with others unless essential, especially in light of the current coronavirus pandemic. This comprises:

● Buckets/mugs

● Doormat

● Wipes

● tidy towels

● Bed Sheets/bedspreads

● coverings and pillows

● Toiletries

Ensure a hassle-free stay in your PG accommodation by carefully negotiating and finalizing the sample pg rent agreement with the landowner. This will provide protection and documentation of your stay, including the rent paid and amenities utilized. However, if you encounter any challenges along the way, don’t hesitate to reach out for expert assistance. Contact NoBroker legal services today to navigate the process smoothly and efficiently. 

Frequently Asked Questions

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