The rental landscape in India is undergoing a slow transformation, with the influx of people into metro cities, in search of jobs. The rental market has also benefited from the surging real estate prices in India, which have made home ownership unaffordable to many. Growth of the rental market, has meant that paying guest (PG) accommodations have also gained traction. People from all walks of life, especially bachelors, are now opting for PG homes, as they offer an easy rental option and stringent rental agreement rules. Moreover, there is better awareness about tenant and tenancy rights and searching for a PG accommodation is quite easy nowadays, with multiple online sites. This has led to mushrooming business, making PG rentals a consumer-led market.
Advantages of living as a paying guest
“India’s urban population rose by 31.8% in 2016 and this requires better rental infrastructure. PG accommodations are a convenient way to fulfill the needs of bachelors, vis-à-vis rental options. At the same time co-living options, like flat mates, support independency, lifestyle and resemblance to your home in a new city,” says, Sanchal Ranjan, co-founder and CEO, ZiffyHomes.
“If you plan to move into your own apartment, prepare yourself as it will be expensive to rent a semi-furnished or a fully-furnished home. With PG, you can have peace of mind, as the owner will fix you up with the basic facilities, such as furniture, electronics and most importantly, food. Most PG owners in Delhi, provide you with a meal plan and it definitely helps. Also, in a PG home, you will be sharing the space with like-minded people, which will help in your personal development,” explains Harshit Takkar, manager, business intelligence, FellaHomes.
Cost of a PG accommodation
PG accommodations are also ideal for individuals, who are new to a city and are looking for rental options at an affordable price. “An average person spends one-third of their earnings on accommodation, which includes rent, electricity charges, groceries/food, maintenance charges, maid, cook, etc. A PG accommodation provides all these components in a single option,” Ranjan elaborates.
Nevertheless, one needs to consider several important factors, before selecting a PG accommodation. These include security arrangements, availability of power backup, distance from the workplace, access to transport options like metro, buses, etc., and presence of market places, convenience stores, hospitals, shopping malls and entertainment centres, nearby, as in the long run these will affect your monthly budget, adds Ranjan.