Nearly every serious PG dispute — a withheld deposit, a sudden move-out, an argument over the electricity bill — traces back to the same root cause: it was never written down. A clear agreement is the cheapest insurance a PG owner can buy. This is a practical checklist of what belongs in one.
A quick note: this is general guidance, not legal advice. Rental laws differ by state, so have a local lawyer review your template once before you start using it.
Why a written PG agreement matters
A handshake feels friendly until the day a tenant leaves without notice, or demands a full deposit back after breaking something. A written agreement turns "he said, she said" into a document both sides signed. It protects the tenant too — which makes good tenants more comfortable signing with you.
The clauses every PG agreement should have
Treat this as your checklist. A solid PG agreement covers:
- The parties. Full name and ID details of the owner and the tenant.
- The property and the bed/room. Identify exactly what's being let — building, room, and bed if it's shared.
- Rent. The amount, the due date, and the accepted payment mode.
- Security deposit. The amount, and — crucially — the exact conditions for its refund.
- Notice period and lock-in. How much notice each side must give, and any minimum stay.
- What's included. Spell out electricity, water, Wi-Fi, food, laundry and housekeeping — included or extra.
- Electricity billing method. Whether it's a flat charge or metered and split by usage.
- House rules. Guest policy, entry timings, smoking/alcohol, noise, and use of common areas.
- Maintenance responsibilities. What the owner fixes versus what the tenant pays for.
- Grounds for termination. What behaviour lets either side end the agreement early.
- Renewal and rent escalation. How and when rent can change on renewal.
Deposit and notice period — get these explicit
These two clauses cause the most fights, so leave zero ambiguity:
- State the deposit amount and list exactly what can be deducted (unpaid dues, damage beyond normal wear, unpaid bills) and the timeline for returning the balance.
- State the notice period in days, and whether rent is owed through the notice window even if the tenant leaves early.
House rules — write them down
Rules that live only in your head can't be enforced. Put the important ones in the agreement or an annexure the tenant signs: visitor policy, gate/entry timings, cleanliness expectations, and how meals or the mess work. Tenants respect rules they agreed to in writing.
Digital vs paper
Paper agreements get lost, and collecting a signature in person slows down move-ins. A digital agreement with e-sign lets a tenant read and sign before they arrive, and it's stored safely for both of you.
Homly handles this end to end: you collect the tenant's ID and documents at onboarding, get the rental agreement e-signed, and keep everything in one place tied to that tenant's record — no folders of scanned photos in WhatsApp.
A simple onboarding sequence
Put the agreement to work with a repeatable move-in flow:
- Share the agreement and house rules with the incoming tenant.
- Collect their ID and the security deposit.
- Get the agreement e-signed.
- Hand over the room and record the opening meter reading.
Do this the same way every time and you'll rarely have a deposit or notice dispute again.
Bottom line: the agreement isn't paperwork for its own sake — it's the single document that settles every future disagreement before it starts. Cover the deposit, the notice period, what's included, and the house rules in writing, get it signed, and store it where you can find it in seconds.
Aman Sirohi
Created Homly after managing his own property and running into the same problems every landlord faces.