Looking for a rent agreement for PG or a clear written deal for a paying guest stay? PG arrangements are common for students and working professionals who need a bed or room with shared kitchen, washroom and house rules—not a full exclusive flat tenancy. A short written agreement still matters: it locks rent, deposit, inclusions and exit notice before money changes hands.
This complete guide covers what a PG / paying guest agreement should include, how it differs from a flat rental, documents, stamp notes, and a practical workflow. Draft structured terms here: Rent Agreement Generator (adapt clauses for PG sharing and services). Related: rent agreement for students, working professionals, rental agreement for flat.
What “PG / paying guest” usually means
In everyday Indian usage, a paying guest (PG) stay means the owner (or operator) provides accommodation—often a bed in a shared room or a private room in a shared home/PG facility—along with house rules and sometimes food, wifi or laundry. The guest typically does not get exclusive possession of an entire independent flat the way a standard tenant does.
- Shared bathrooms, kitchen or common areas are common
- Monthly “PG rent” may bundle food or utilities
- Visitor timings, noise and cooking rules are often stricter
Because sharing creates friction points, write the rules down—do not leave them only on WhatsApp.
PG agreement vs flat rent agreement
| Point | PG / paying guest | Full flat rental |
|---|---|---|
| What you get | Bed/room + shared facilities | Exclusive flat possession |
| Key clauses | House rules, food/wifi, visitors | Society maintenance, parking, inventory |
| Typical users | Students, early-career professionals | Families, couples, longer household stays |
| Document feel | Shorter service + stay terms | Full residential tenancy format |
Flat format: rental agreement for flat. House format: rental agreement for house.
What to include in a PG / paying guest agreement
- Parties: owner/operator and guest (guardian details if the owner requires them for students)
- PG address: full address, and room/bed identification if numbered
- Occupancy type: shared room / private room; gender-specific PG if applicable
- Monthly charges: rent/PG fee, due date, payment mode
- What is included: food (veg/non-veg, meals count), wifi, laundry, electricity cap, cleaning
- Security deposit: amount, refund timing, deductions for damage/loss of keys
- Lock-in / notice: how many days’ notice to leave or to ask a guest to vacate
- House rules: entry timings, visitors, alcohol, smoking, cooking, noise
- Inventory: bed, mattress, cupboard, AC, geyser, etc. provided to the guest
- ID and police verification cooperation: where localities expect it— police verification
- Signatures: both sides keep a copy
General clause checklist: what to include, format template.
Important PG-specific clauses explained
Inclusions and extra charges
Ambiguity about “food included” or “unlimited electricity” causes most PG disputes. List inclusions clearly and state caps or extra charges for AC, guests’ meals or late-night kitchen use if those apply.
House rules
Write visitor hours, overnight guest policy, quiet hours and whether cooking is allowed. Rules that exist only verbally are hard to enforce fairly later.
Deposit and exit
State when deposit will be returned after handover of keys and bed space, and what deductions are allowed (broken items, unpaid dues). Related exit reading: cancellation / notice.
Sharing and roommate changes
If the owner can change roommates or shift the guest to another similar bed/room, say so—or say that changes need consent. Surprises on room reshuffles are a common complaint.
Documents for PG stays
- Photo ID of the guest (and guardian ID if collected)
- Owner / operator ID and address proof of the PG property as practised locally
- Written PG agreement / terms sheet signed by both
- Payment receipts for deposit and monthly fee
- Any local verification forms the operator uses
Broader checklist: rent agreement documents required.
Stamp duty and formality notes
PG paperwork ranges from simple signed terms to more formal stamped instruments, depending on how the arrangement is documented and on state practice. Do not assume a residential flat stamp figure automatically applies—or that zero formality is always safe. If you use a formal rent-style instrument, confirm stamp / e-stamp expectations for the property’s state— stamp duty in India, e-stamp paper, e-stamping guide.
Registration is usually discussed less often for short PG stays than for full flat leases, but counterparties (or local practice) may still ask for clearer documentation—confirm what you need— 11-month registration FAQ.
Students and working professionals in PGs
- Students: guardian contact, college ID, academic-year end dates— students guide
- Professionals: HR may still ask for address proof; ask whether a PG agreement letter is accepted— professionals guide
Recommended PG workflow
- Visit the PG; confirm room/bed, food and wifi inclusions in writing.
- Agree deposit, monthly fee, notice period and house rules.
- Draft terms— Rent Agreement Generator — make a rent agreement online.
- Exchange IDs; pay deposit against a receipt.
- Sign copies for guest and owner; complete any local verification steps.
- Keep digital scans for the stay and exit deposit refund.
Common PG agreement mistakes
- No written list of what “all inclusive” means
- Deposit amount agreed verbally only
- No notice period for leaving mid-month
- House rules enforced selectively without a signed copy
- Using a full flat template that ignores sharing and food terms
- Unverified WhatsApp PDFs— fake rent agreement
Free drafts can still help if terms are clear and both sides sign— free rent agreement online, is a free agreement legally valid?.
Related guides
- Rent agreement for students
- Working professionals
- Rental agreement for flat
- Documents required
- Online rental agreement in India
Create your PG terms online
- Open Rent Agreement Generator
- Fill parties, PG address, charges, deposit and dates
- Add PG rules and inclusions before finalising
- Download, sign copies, and complete any local stamp/formalities required
Frequently asked questions
Do I need a rent agreement for a PG or paying guest stay?
A written agreement is strongly recommended. It records rent, deposit, room/bed details, rules, notice period and inclusions (food, wifi, laundry) so both guest and owner have clarity.
How is a PG agreement different from a flat rent agreement?
PG/paying guest arrangements usually cover a bed or room with shared facilities and house rules, not exclusive possession of an entire flat. Clauses focus on sharing, timings, visitors and services included.
What should a PG rent agreement include?
Guest and owner names, PG address, room/bed allocation, monthly charges, deposit, notice period, food/wifi/laundry inclusions, house rules, and inventory of items provided.
Is stamp duty required for a PG agreement?
It depends on how the arrangement is documented and on state practice. Confirm locally whether stamp duty / e-stamp applies to your instrument before you rely on an unstamped paper.
Can students use a PG rent agreement?
Yes. Many students stay in PGs. Keep guardian contact details if required by the owner, and see our students rent agreement guide for extra tips.
Can I draft a PG agreement online?
Yes. Prepare clear terms online, customise PG-specific rules and inclusions, then complete any stamp or formalities your local practice requires.
Draft your PG / paying guest terms online, write inclusions and house rules clearly, then both parties should keep a signed copy.
This guide is general information about PG and paying guest agreements in India. It is not legal advice. Confirm stamp duty and any local formalities from official sources or a local professional when your arrangement is documented as a formal instrument.