With Delhi being a metropolitan city and a capital region, its cost of living is increasing at an expanding rate. With the quality of education adding to its value it’s filled with both central and state-owned universities which attract the outside Delhi students, also adding are the private universities which make education more hyped, not only educate, the jobs and the occupation services are also a major factor. Thus these services have given rise to a new sub-market in the realty sector, the Paying Guest accommodations.
The trend of converting a house into a paying guest (PG) accommodation is fast catching up, especially in metro cities that witness a huge influx of student population and working professionals every year. As this money-spinning business has garnered the interest of several property owners, I will be sharing important tips to keep in mind before transforming your home into a PG.
1. What are the legal formalities before converting your home into a PG?
It will be treated as a commercial property so make sure you obtain all the necessary licenses and approvals, as per your state and locality, from the concerned authorities.
Usually, co-operative societies oppose such proposals, thus, it's necessary to require permission in writing at a general body meeting, to avoid disputes later.. Non-compliance of legal formalities might lead to discontinuance of business, which may be a big monetary loss.
2. What security measures must be taken before converting your home into a PG?
A watchman and a CCTV is a necessity for the security measures which will add to the renting cost and are needed for both male and female tenants.
3. What background checks must be done before converting your home into a PG?
A little knowledge about your tenants and a proper verification is necessary for background checks. Photocopy of documents which serve as identity proof such as passport, Aadhar card, official id or college id, should be kept for future records and reference.
4. What amenities and staff arrangements are required for converting your home into a PG?
Offering PG services calls for additional expenses. Basic services like home-cooked meals, proper bedding and good laundry service, to added facilities of air-conditioning and high-speed Wi-Fi connection - these are some mandatory requirements which should be met by the PG owner for the graceful running of the PG accommodation also as ensuring the comfort of the occupants.
5. What are the expenses of converting your home into a PG?
Conversion of your home into PG impacts your monthly bills and expenses. The taxes paid would be levied according to the commercial property rules and not the residential rules.
If you are also looking for tenants then upload your property at houseitt.in.