PG Rental AgreementApril 10,2025

PG Rental Agreement Guide: Everything You Need to Know

by flh • Blog

If you are about to shift to a pg for students, a pg for working professionals, or even a luxurious pg in Ahmedabad, one of the most crucial things to do before you start unpacking your bags is sign a PG rental agreement. It may appear to be just a formality, but this agreement safeguards you and the owner of the property from potential disputes. 

 In Ahmedabad, PG rooms are in demand. And with the demand comes the necessity of having clear agreements so that life runs smoothly. Here’s all you need to know. 

 What is a PG Rental Agreement? 

A PG rental agreement is a legal document that spells out the terms of stay between the tenant (you, the paying guest) and the landlord. It specifies details like rent, security deposit, house rules, length of stay, responsibilities, and exit clauses. This isn’t paperwork, it’s your peace of mind.

Key Elements of a PG Rental Agreement 

Whether you’re looking for a pg for girls, pg for boys, or shared accommodation for professionals, here are the critical elements every rental agreement should include: 

  1. Parties Involved

Names and permanent addresses of both the PG owner (landlord) and the tenant (you). 

  1. Property Details

Clear description of the premises including address, floor, and the specific room or bed space allocated. 

  1. Tenancy Duration

Start and end date of your stay, with conditions for renewal, extension, or premature termination. 

  1. Rent & Payment Terms

Specify the rent payable monthly, due date, mode of payment preferred (UPI, cash, bank transfer), and late fee charges. 

  1. Security Deposit

Generally, PG owners demand a deposit equivalent to 1–6 months’ rent. The agreement should mention the amount, conditions of refund, and allowable deductions. 

  1. House Rules

Whether it’s guest visits, noise levels, access to the kitchen, or cleaning duties—spell it all out here. 

  1. Repair & Maintenance

Who does what? Specify whether you or the owner will be responsible for plumbing problems, appliance repairs, etc. 

  1. Termination Clause

Specify the notice period of vacation and any fines for termination by either party. 

  1. Dispute Resolution

In the event of disputes, indicate how disagreements would be settled—by negotiation, mediation by a third party, or through law. 

  1. Signature & Witnesses

For it to be binding, both owner and tenant are required to sign it. Better still, it should be signed by two witnesses as well.

Bonus Read – Top PG Accommodation Localities in Ahmedabad

Real-Life Importance of PG Agreements 

Let’s be honest—PG accommodations are a hassle-free choice for most, particularly bachelor’s or those who do not wish to go through the bother of leasing out the entire flat. But while PGs are increasing in popularity, so are illicit activities. 

Without a PG rental contract, a large number of tenants have found themselves without deposits or were required to take surprise rent increases or rule modifications. Whether you reside in a luxury pg in Ahmedabad or a humble arrangement, a contract promotes transparency and responsibility.

Things That Tenants Don’t Notice 

Here’s a checklist of points you should notice before signing the dotted line: 

(1) Read each clause, don’t just scan through. 

(2) Ask about refund policies, especially if you’re ending your stay early. 

(3) Inquire about amenities like Wifi, meals, laundry, electricity backup, etc. 

(4) Clarify rules like is there a curfew? Can guests stay over? 

(5) Registration- While not mandatory, registering the agreement adds legal validity.

Sample Clause Example 

Here’s a common clause format: 

“The Owner hereby undertakes to allow the Paying Guest to occupy one bedroom in the above premises being Flat No. This Paying Guest Agreement shall be for a duration of. only from. The Paying Guest shall pay an amount of. (Rupees. only) for each quarter (Three months).” 

You can modify this to fit your own arrangement.

Basic Essentials Checklist 

No matter how fancy the PG looks, here’s what you must have: 

(1) Furniture: Bed, mattress, table, chair, cupboard 

(2) Hygiene items: Towels, bed linen, wipes, toiletries, bucket/mug

(3) Cleanliness rules: Especially important during health-sensitive times like post-pandemic living. 

Some PGs might just offer basic space. But PGs like FLH offer modern interiors and provide other premium amenities as well. In either case, confirm what’s included before you sign.

Additional Read – Hostel vs PG: What’s Better for Students & Professionals?

Cost of PG Rental Agreements 

The good news? Having a PG rental agreement is within your budget and easily downloadable online or through legal service websites. After you’ve come to an understanding with the landlord, the agreement can be printed on stamp paper and lawfully notarized. 

Keep in mind: persuading a reluctant landlord to sign an agreement is not a warning sign, it’s a green light for cooperation and trust.

Final Thoughts 

Selecting a PG in a cosmopolitan city like Ahmedabad, particularly near student and business areas like Navrangpura, may be daunting. If you are a student searching for a pg for girls, a working professional seeking a pg for boys, or someone who wishes to feel at home in a luxurious pg in Ahmedabad, a good PG rental agreement is your ticket to a safe and trouble-free stay.