How to Start a PG (Paying Guest) Business in India

There are a lot of people in India who need a place for themselves to stay when they move to another city for work or study. Because it is for a short period, they prefer going for a PG.

 

The process of starting a PG (Paying Guest) Business in India is not a difficult one. However, there are certain policies that need to be followed to ensure success.

 

So, if you have an extra room or two and want to start a paying guest (PG) business in India, here are the steps you need to take:-

 

Step 1 - Get the Rooms Ready

Step 2 - Buy Bed, Furniture and Electrical Appliances

Step 3 - Hire a Cook and Cleaner

Step 4 - Decide the PG Charges

Step 5 - Spread the Word

Step 6 - Register your Business and Expand

 

Step 1 - Get the Rooms Ready

 

Here are some tips on how to get the rooms ready for PG (paying guests).

 

Clean the Room from Top to Bottom: 

 

Cleaning the room from top to bottom can help you maintain a healthy environment for your guests and also make them feel at home. 

 

It is important that you clean all of the surfaces, especially in areas where they will be eating their meals and take care of personal hygiene.

 

Check for Pests: 

 

Check around your property for any pests that may have come in while you were gone such as ants, cockroaches, spiders, etc. and take care of them as soon as possible. 

 

These pests can cause a lot of havoc to your property and will only make things worse for you.

 

Fill the Cracks and Get it Painted:

 

The next thing is to check the room for any leakages or cracks. Fix them up and get the room painted. This will make the room look new and attract more paying guests.

 

Choose a neutral light color for this purpose. It will allow the room to be more lively and bright.

 

As a result, they may end up choosing your PG for this reason alone.

 

Check the Electrical Fittings:

 

Make sure that all the buttons, charging points, lights, fans and AC is working properly in the room.

 

Cover all the open wires and check if all the sockets are current-proof or not.

 

Step 2 - Buy Bed, Furniture and Electrical Appliances

 

The next thing is buying a bed, mattress, study table, chair, side stools and almirah for the room if you don't already have one.

 

Also, you will need to either get a refrigerator separately for the paying guests. 

 

These are the basic amenities that attract paying guests.

 

Apart from these, having WIFI and a TV will serve as an added benefit to retain your guests.

 

Not only this, but you will also have to keep a check on your guest's security.

 

Therefore, put up CCTV Cameras in the lobby, eating area and outside the PG. 

 

Here is a list of Best CCTV Cameras with Voice Recording:

 

• MI Xiaomi Wireless Home Security Camera 2i 2022 Edition 
• Mi 360° Home Security Camera 2K Pro with Bluetooth Gateway BLE 4.2
• CP Plus 1080P Full HD Smart WiFi IP Camera
• Imou 360° 1080P Full HD Security Camera
• TP-LINK 360° 2MP 1080p Full HD Pan/Tilt Home Security Wi-Fi Smart Camera
• D3D WiFi Home Security CCTV Camera

 

Amenities are a big factor in the decision of where to stay. 

 

Step 3 - Hire a Cook and Cleaner

 

The next most important thing that paying guests look forward to is good food and hygiene.

 

Generally, a three-time meal for paying guests is included in the stay. 

 

You can also give them the option of not opting for food service and give a discount on rent.

 

Cooking and cleaning are two tasks that are often overlooked by hosts. But they are necessary to keep your guest's stay and keep on paying you.

 

For this purpose, you can post an ad on the internet or ask around for referrals from friends or colleagues. 

 

Trust word of mouth when hiring a cook and a cleaner in India.

 

Step 4 - Decide the PG Charges

 

The rent of a PG is not the same for all PGs. 

 

It depends on the location, facilities, and amenities that are offered.

 

A PG with more facilities at an accessible location will charge more than one with fewer facilities in a not-so-good area.

 

Also, the PG Charges are different from City to City as well.

 

For example, a PG in Jaipur charges around Rs. 7,000 - Rs. 9000 per month which includes a three-time meal and other amenities as well.

 

Whereas, a PG in Delhi with similar amenities could charge around Rs. 10,000 - Rs. 15,000 per month.

 

There are many factors that determine the PG (paying guest) rent, such as: 

 

• Location of the Property
• Quality of Amenities
• Distance from the City or Work Location
• Cost of Living
• Hygiene
• Room Space
• AC or Non AC
• Bathroom Attached or Not

 

But, make sure to do your research first about the similar PGs in your area and what are the prices they are offering.

 

Do not put up charges higher than the ones who are already in the market.

 

Step 5 - Spread the Word

 

There are many different ways to spread the word about your new PG Business. 

 

You can use social media, traditional advertising, or even word of mouth.

 

• Social Media: Social media is a great way to reach a large audience quickly and easily. It is also an easy way to measure the success of your marketing efforts by tracking how many likes, shares and comments you get on your posts.
• Traditional Advertising: Traditional advertising like billboards, flyers and posters are still effective ways to reach people in certain demographics.
• Word of Mouth: Word of mouth is a great way to get the word out about your business because it relies on people recommending you to others they know personally.

 

Step 6 - Register your Business and Expand

 

The registration process for a new business in India is tedious and time-consuming. 

 

But with the help of an expert, you can make it faster and simpler.

 

They will guide you through the registration process and help you to understand the procedures, paperwork, and legal requirements.

 

You can register your business as:

 

• Sole Proprietorship
• Partnership
• Private Limited Company Registration Online
• One Person Company
• Limited Liability Partnership 

 

Once you have registered it legally, it will be easier for you to expand and get more paying guests. 

 

At the end of the day, if you are looking for a good business opportunity in India, PGs are a good bet. The market is huge and there is no shortage of demand.

 

Guest Verification 

 

The most important documents you should verify are government IDs like, Aadhar Card, PAN Card and Photograph with the details of their guardians in case of any emergency.

 

Rent agreement is another important document that should be filled and validated by the guest and owner. 

 

Apart from displaying the background details of the paying guest, the rent agreement also suffices other purposes.

 

For instance, if you plan to alter the rent amount periodically, which is usually one year, include it in the agreement. Once it is signed by the tenant, it reflects his/her consensus and safeguards you from any future conflict. In addition to this police verification of the tenant is compulsory.