PG rent agreement format: what to include, with a clause checklist

A good PG rent agreement format does two jobs: it sets the terms clearly before anyone moves in, and it settles disputes quickly when memories differ. Most PG agreements are copied from a generic flat rental template that doesn't fit how a PG works — shared rooms, house rules, meals, and residents coming and going every month. This guide covers the legal basics, the clauses a PG agreement should have, and the paperwork around it.

This is general information, not legal advice. Rental law is largely state-specific, so have a local lawyer review your format before you use it.

Leave and licence vs rental agreement

A rental (lease) agreement transfers an interest in the property to the tenant for the period of the lease. A leave-and-licence agreement only gives the licensee permission to use the premises; it doesn't transfer an interest in the property. Many PG operators use leave-and-licence agreements because a PG resident is using a bed and shared facilities on the operator's terms rather than taking over a flat. Which form suits you, and how your state treats it, is a question for your lawyer.

Why so many agreements are for 11 months

Under the Registration Act, 1908, a lease of immovable property from year to year, or for any term exceeding one year, must be registered. Leases for shorter terms don't have to be. That's where the common 11-month agreement comes from: it keeps the agreement below the compulsory-registration line in states where only the central rule applies.

It is not a universal shortcut. Maharashtra is the clearest example: under Section 55 of the Maharashtra Rent Control Act, 1999, every leave-and-licence or rental agreement must be in writing and registered, whatever its length, and the responsibility for registering it is the landlord's. If it isn't registered, the tenant's version of the terms is presumed to be correct unless proved otherwise. Maharashtra offers online registration of leave-and-licence agreements through the IGR Maharashtra portal.

Stamp duty and registration

Stamp duty on rent and leave-and-licence agreements is set by each state, and so is the method of calculating it. In some states it's a small fixed amount; in others it's worked out from the rent, the term and the deposit. In Maharashtra, the IGR portal has a stamp duty calculator for leave-and-licence agreements. Check your state's stamp and registration department for the current rate before you print or e-stamp anything — an understamped agreement is weaker evidence if you ever need to rely on it.

The PG rent agreement clause checklist

Use this as a checklist against your current format. Every item should be stated in plain words, with numbers rather than phrases like 'as applicable'.

• Parties: the operator (or licensor) and the resident, with addresses and ID details.
• The bed, not just the property: building, room number, bed number, and the sharing type.
• Term: start date, end date, and how renewal works.
• Rent: the monthly amount, the due date, and how to pay.
• What rent includes: food, electricity, Wi-Fi, housekeeping, laundry — and what's charged separately, such as electricity above a limit.
• Late payment: what happens if rent is late, stated in advance rather than decided on the day.
• Security deposit: the amount, that it is refundable, and when it will be returned after move-out.
• Deductions from deposit: unpaid dues, damage beyond normal wear and tear, lost keys — listed, not left vague.
• Lock-in period, if you use one: the minimum stay and what happens if the resident leaves earlier.
• Notice period: how many days' notice each side must give, how notice is given (in writing or WhatsApp to a named number), and what happens if notice is short.
• Rent revisions: whether and when rent can change, and how much notice you'll give.
• House rules: guests and overnight stays, entry timings if any, quiet hours, smoking and alcohol, kitchen use, cleanliness.
• Maintenance and repairs: what the operator fixes, how residents report problems, and responsibility for damage caused by the resident.
• Room changes: whether the operator can move a resident to another bed and on what terms.
• Inventory and condition: the furniture and items provided, and the condition at move-in.
• Termination: grounds on which the operator can end the agreement, such as repeated non-payment or serious rule breaks.
• Move-out process: room inspection, key return, and the deposit settlement timeline.
• Use of premises: residential use only, no sub-letting or sharing the bed.
• Emergency contact: a name and number for the resident's emergency contact.
• Signatures and date from both sides, plus witnesses where your state requires them.

Tenant KYC and police verification

The agreement sits alongside the resident's KYC. At minimum, collect a government photo ID, a current photo, a verified phone number and an emergency contact at move-in — our onboarding checklist post covers this.

Many cities also require landlords to report tenant details to the police. Mumbai Police, for example, runs an online tenant information form. The process, the form and the penalty for skipping it differ by city, so check with your local police station and do it for every resident, not just the ones who stay long.

Keep the agreement where you can find it

An agreement only helps if you can produce it at move-out. Keep a signed copy against each resident and bed, along with their ID and the deposit record, and give the resident their own copy. A stack of paper in a cupboard works until you have a dispute from eight months ago and forty residents since.

A clear agreement doesn't prevent every disagreement, but it turns most of them into a two-minute conversation: here's what we both signed.