PG notice period rules: how to handle notice and refund the deposit fairly

What does the law say about notice in a PG?

There is no single national rule for PG notice periods. What applies depends on your written agreement, the kind of arrangement it is, and your state's law.

• PG stays are often set up as a licence, not a lease. Under section 52 of the Indian Easements Act, 1882, a licence is a permission to use property that does not give the person any interest in it. A licence can generally be revoked, and under section 63 the licensee gets a reasonable time to leave and take their belongings. Read more on leave and licence for PGs.
• Leases have a default rule. If an arrangement is a lease and nothing else is agreed, section 106 of the Transfer of Property Act, 1882 treats a residential lease as month to month, ended by 15 days' written notice from either side. Your agreement, local law or local usage can change this.
• State rent laws may also apply. Rent control and tenancy laws differ by state, so the same notice clause can be treated differently in Bengaluru, Mumbai or Delhi.

How long should a PG notice period be?

Pick rules you can explain in one sentence and apply to everyone. These are common choices, not legal requirements.

What to put in your PG house rules about notice and deposit

• The notice period, and that notice must be given in writing on WhatsApp or on paper.
• Whether there is a lock-in, and what an occupant pays if they leave before it ends.
• What is deducted if someone leaves without full notice. Write it as a number of days of rent, not "the deposit will be forfeited".
• What counts as damage and what counts as normal wear and tear (faded paint and worn mattresses are wear and tear; a broken cupboard door is damage).
• The deposit refund timeline and method, for example "within 7 days of move-out, by UPI or bank transfer to the occupant's own account".
• That the final electricity reading is taken on the move-out day. Use our PG electricity bill calculator to work out the last share.
• Key, access card and locker return.

These rules belong in the signed agreement or in a house rules page attached to it. A notice board alone is hard to rely on later. Our guide to the PG rental agreement format lists the other clauses to include.

PG move-out checklist for owners

1. 1

   Acknowledge the notice the same day

   Reply on WhatsApp with the date you received it and the last day of stay. Use the message template below.

2. 2

   Agree the move-out time

   Fix a date and time when you or your caretaker will be there for the room check.

3. 3

   Check what is still due

   Look at rent paid this month and any pending amounts. If the last day of stay is mid-month, work out the rent up to that day with the prorated rent calculator. A receipt for every payment makes this a two-minute job instead of an argument.

4. 4

   Take the final meter reading together

   Photograph the meter with the occupant present, and work out their electricity share up to the last day.

5. 5

   Inspect the bed area with the occupant

   Compare with the move-in photos. Note any damage beyond normal wear and tear, with photos, while the occupant is there.

6. 6

   Collect keys, access cards and locker keys

   Note anything not returned and the agreed replacement cost.

7. 7

   Send the full-and-final settlement in writing

   List the deposit, each deduction with its reason and amount, and the refund. Send it on WhatsApp the same day.

8. 8

   Refund the deposit and share the reference

   Pay by UPI or bank transfer to the occupant's own account within the time you promised, and send the transaction reference.

9. 9

   Close the records

   Mark the bed vacant, keep the agreement, settlement message and refund proof together, and update any records your local police or municipal rules require. See tenant police verification.

Message to acknowledge a PG notice

Copy this, fill in the blanks and send it as soon as an occupant tells you they are leaving.

Hi [Name], thanks for letting us know. We received your notice to vacate on [date received].

As per the house rules, your notice period is [15 days / 1 month], so your last day of stay is [last day].

On [last day] at [time], [owner/caretaker name] will check the room with you, take the final electricity reading and collect your keys and access card.

Your deposit of ₹[amount] will be refunded within [7] days after that, minus any dues we agree on at the check. We will send you the full calculation on WhatsApp.

[PG name]

Full-and-final settlement message

Send this on the move-out day, after the room check. Every deduction should have a reason the occupant has already seen. For a printable statement with a line for the occupant to sign, use the rent notice letter generator.

Hi [Name], here is your full-and-final settlement for [PG name], bed [bed/room number].

Security deposit paid: ₹[deposit]

Deductions:
- Rent for [dates], unpaid: ₹[amount]
- Electricity, [units] units up to [last day] (meter photo attached): ₹[amount]
- [Damage or lost key, with reason] (photo attached): ₹[amount]
- Notice period short by [x] days, as per house rules: ₹[amount]

Total deductions: ₹[total]
Refund due: ₹[refund]

We will transfer ₹[refund] to [UPI ID / bank account] by [date] and send you the reference number.

If anything here looks wrong, reply today and we will go through it together.

Thank you for staying with us.
[Owner name]

Why PG deposit refunds turn into disputes

Search for "PG owner not returning deposit" and you will find the same few complaints again and again. Each one is avoidable from the owner's side.

• The refund is late with no date given. Promise a timeline in writing and keep to it.
• Deductions are announced, not explained. Show the working, the photos and the house rule for each one.
• Normal wear and tear is charged. Repainting and deep cleaning between occupants are running costs of the PG, not damage.
• The whole deposit is kept for short notice. Deduct only what your written rules say, for the days actually short.
• There is no record of what was paid. Without receipts, the occupant's memory and yours will differ. Keep a receipt for every rent payment. See our rent receipt format guide.

Running a bigger building? See hostel management software, or compare tools in our list of the best PG management apps.

Frequently asked questions