An individual who stays within the premises of the Owner in the same house utilizing all the benefits of the house like a guest and paying for the facilities like food, laundry, bed etc. to the owner. A paying guest is not a Tenant and hence does not enjoy any privileges of a Tenant under the law.
Benefits of P.G. Accommodation
Paying guest accommodation is often considered a pocket-saver for bachelors who can’t afford to rent an entire house to themselves. Such arrangements also provide additional income to homeowners who don’t have spare houses to rent out but have enough space in their own residence to accommodate more people.
When To Use?
Since Paying Guest accommodation is becoming a trend in cities, there is a great chance that the newcomers to the city can be cheated into paying huge deposits and charges for various facilities, and finally ending up with no promises fulfilled by the owner.
As a precaution and safety measure it is recommended that anyone intending to go into Paying Guest accommodation should first and foremost prepare an agreement with clear terms and conditions with the owner.
How To Use A Paying Guest Agreement?
Once you have selected the P.G agreement form from LegalDesk, fill it in with following details
Names of parties involved
Description of premises allotted
Code of conduct expected from tenant/ owner
You can add further details, customize or remove/add additional clauses, should you wish to. Once you are happy with the agreement, you will need to print it on stamp paper and all parties involved must sign the deed. You will also need the signatures of two witnesses. You’re done!
Frequently Asked Questions
1.What happens if there is no P.G. agreement in place?
If a well drafted P.G. agreement is in place, both the owner and the paying guest are protected against future legal battles. It is also a way to ensure that either party does not stray from clauses which were agreed upon in advance.
2. What is the difference between a paying guest and a rented tenant?
A paying guest stays within the same premise as the Owner, the Owner still retaining the rights of stay over the premise. The paying guest is provided food, laundry facility, bed, electricity etc. just like a home. But a PG does not have full liberty to use the entire house of the Owner. Only a specific part of the house is meant to be used by the PG.
But a Tenant is protected under the law and has lot more rights of as owner by possession on the rented property. The whole house is given to the tenant to use and enjoy, without the Owner having right to entry to the rented property without the Tenant’s permission.
3. What if the deed is not printed on Stamp paper?
Any Agreement not made on Stamp paper cannot be used as a document of evidence in courts in case of disputes. It may be used as a collateral evidence, meaning a supporting document.
4. What if the landlord is not willing to use an agreement?
You need to make the landlord aware of his rights under an agreement and how he can be safe while licensing a stranger to live as paying guest in his own premises. If the landlord fails to accept making an agreement, then would seem like taking a risk on your part. Best if you avoid such cases.
5. What are the facilities that the landlord is expected to provide?
Usually along with stay, food is also provided by many landlords. Laundry, TV, Cot, Bed, Refrigerator, Internet etc are some additional facilities which may or may not be provided. Any such facilities should be mentioned in the agreement.
6. What are the roles and responsibilities of a landlord?
An agreement decides the roles and responsibilities of the landlord and the Paying Guest.
It varies according to the specific agreements. A landlord is bound to provide the facilities promised in the agreement, and the PG is bound to pay for it without delay.
7. What is the typical duration of a P.G. agreement?
There is no limited duration for a Paying Guest stay. Since it is only a licence to stay and use the premises, it can be made for 1 month, 6 months or 11 months, though legally it is considered as month to month licence.
8. Is it necessary to notarize a P.G agreement?
No, it is not necessary to notarize a PG agreement. As long as the agreement is made on stamp paper of required value, the document will be considered legally valid.