Should you sign an 11-month Leave & License agreement or a PG Resident Admission Rules contract? Learn the legal distinction, lock-in period enforceability, and security deposit refund rules in India.
Adv. Meera Nair
Legal & Real Estate Compliance Advisor
When you rent out an independent 1BHK/2BHK flat, you grant exclusive possession of the premises under an 11-month Leave & License Agreement or Model Tenancy Act lease. However, in a Paying Guest (PG) or student hostel where multiple unrelated occupants share rooms and common facilities, you are granting a conditional license to use a specific bed.
Using a generic flat rental agreement for a shared PG bed is a costly mistake—it makes it difficult to shift an unruly resident between rooms or enforce curfew, visitor, and mess timings.
Nearly every bitter Google Review left for a PG or landlord stems from misunderstandings around security deposit deductions at move-out. Your digital onboarding agreement must clearly specify:
Salaried employees living in PGs can claim House Rent Allowance (HRA) tax deductions under Section 10(13A) as long as they receive proper monthly rent receipts showing the property address, rent paid, and landlord PAN (if annual rent exceeds ₹1,00,000).
Automate your PG, hostel, and rental operations in minutes with RentKhata.
Common questions about pg agreement vs rent agreement india.
Yes, salaried residents can claim HRA exemption on the accommodation rent component supported by official monthly rent receipts and bank/UPI payment proof.
Most PGs and co-living spaces collect 1 to 2 months' rent as a refundable security deposit, whereas independent apartments typically require 2 to 6 months' rent depending on the city.
Running a 40+ bed Paying Guest (PG) or student hostel in Bangalore, Pune, Hyderabad, or Delhi NCR requires more than paper registers and WhatsApp groups. Learn the operating playbook that top PG operators use to boost net margins by 22%.
Traditional property software tracks whole apartments. In Indian PGs and co-living spaces, three tenants in Room 204 can have different rents, move-in dates, and notice periods. Here is how bed-level tracking works.
Electricity disputes are the #1 reason for friction between Indian landlords and tenants during summer months. Use this transparent sub-meter formula to bill single rooms, shared PG beds, and common area loads with zero confusion.
Join thousands of Indian landlords and PG owners using RentKhata for bed tracking, sub-meter billing, and UPI rent collection.
