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Pg accommodation @bangalore

(Querist) 25 July 2013 This query is : Resolved 
Mine is rented commercial property for business purpose with commercial electricity and water. As I have extra rooms, I would like to give it on rent /convert them it in to PG accommodations.
I would like to know the rules and regulations that need to be followed for starting PG accommodation.
This being commercial property can I just go ahead for renting....
(I saw one query on PG dated 2007 stating no rules/regulations. Its long time and may be there are changes so asking this question. Please forgive me for this dumbness).
malipeddi jaggarao (Expert) 26 July 2013
If you are not owner of the commercial property how can you rent it to others? What are the terms of agreement with the owner? Whether he allowed you for sub-let? These are the main issues.

According to me for starting PG accommodation (means renting it out for accommodation purpose for students) there are no guidelines. Since it is commercial property and electricity and water connections are commercial, there should not any problem to let it out, subject to what clarifications sought from you in the first Para.
prabhakar singh (Expert) 26 July 2013
You told it has been let to you for business
purpose but for what business purpose you have not spoken.If you charge on day to day basis you can run but if you charge month to month and your rent agreement does not provide for subletting then you can not run it with consent in writing of the landlord.

There are no legal formalities such as permission etc.Yet registration under shop
Act may be required if you are employing employees and incase of food supply registration with municipality and health department may also be required,hence better check locally.
Rajendra K Goyal (Expert) 26 July 2013
Agree with the experts.
In some cities the tenants are to be got verified from local police. The inmates of your PG are either under the definition of tenants if so, verify whether such formality (verification) is needed or not.

Otherwise the premises is treated under the definition of guest house, formalities associated with the Guest House i.e. municipal license, inmates register etc. are to be followed, and if food is also be provided, local formalities associated with it need to be completed like license from shop dept, food dept etc.

The working of PG resembles with the activities of guest house / lodge.
ajay sethi (Expert) 26 July 2013
obtain landlord consent or you will be in deep trouble . premises has not been given to you for giving PG accommodation . you may need police verification of PG .you may need muncipal license etc as pointed out by experts
mala (Querist) 26 July 2013
Thanks to all of you. All of you have really pointed out issues. I am answering like this. Please help further.

Jaggarao sir,Owner has no objection if I give some share, though no such mention in rental agreement. Shall I go ahead.

Singh sir, Business purpose is computer training. No employees, no food service. Frankly it is just renting and not PG as no one from owner/our side is staying in it. Shall I go ahead.

Goyal sir, as Jaggarao sir has rightly pointed out it is not really PG accommodation but Renting it out for accommodation purpose for students. Will it be treated as PG/guest house/lodge.

Sethi sir, landlord is more than happy as he would get extra now. This being commercial and not used as PG but as Renting can I go ahead.
malipeddi jaggarao (Expert) 27 July 2013
If you wish to accommodate students who are learning in the same institute, you can obtain their identity and permanent/contact address proof and accommodate them if the owner does not have any objection. Keeping identity on record as Bangalore is a Metro and terrorist-prone. If something goes wrong, police people may verify the identity of inmates. For the present, according to me, this is sufficient.
Raj Kumar Makkad (Expert) 27 July 2013
Your accommodation shall be called as PG what so ever be the manner to keep the students in that building which is on rent with you. You are required to follow the advice as provided above.


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