Everything About PG Deposits
Posted on September 05, 2025 by Team RoomAdda
What's the first thing the PG owner talks about whenever anyone visits their PG? You must be thinking of rent. Yes, you're correct, but partly. The owner, apart from the rent, always talks about the deposit, or to be precise, the security deposit. Many students think it’s a part of the rent, but it's not true. Let me break it down for you.
What is security deposit??
A deposit is an advance amount of money you pay the PG owner before moving in. It’s a kind of financial security for the owner in case of damages, unpaid rent, or sudden move-outs. Think of it as a safety net for them.
Why do they ask for it???
Why not just simply take the rent why do they take this extra money apart from rent??
How much is this money usually???
This depends on a lot of factors, city, PG location, owners' preference, etc. Some PG’s charge very minimal amounts as a deposit, for example, one month's rent, but some PG’s charge huge amounts also, for example, 5-6 months' rent as a deposit. It varies from PG to PG..
It is refundable??
Yes, in most cases deposits are refundable. but again it varies from PG to PG.
How to protect your deposit
Final thoughts
A PG deposit might feel like just another extra expense, but it’s honestly part of the system everywhere. The important thing is making sure you know the rules before you move in. If you clear things upfront—like how much you’ll get back, what counts as damage, and how much notice you need to give—you’ll save yourself from a lot of stress later.
And remember—don’t be afraid to ask questions before you pay. It’s always better to be sure than to regret later.
What is security deposit??
A deposit is an advance amount of money you pay the PG owner before moving in. It’s a kind of financial security for the owner in case of damages, unpaid rent, or sudden move-outs. Think of it as a safety net for them.
Why do they ask for it???
Why not just simply take the rent why do they take this extra money apart from rent??
- To cover damages (broken furniture, stains, etc.)
- To ensure tenants don’t leave abruptly without notice
- To safeguard against unpaid rent or bills
- To maintain accountability and discipline among tenants
How much is this money usually???
This depends on a lot of factors, city, PG location, owners' preference, etc. Some PG’s charge very minimal amounts as a deposit, for example, one month's rent, but some PG’s charge huge amounts also, for example, 5-6 months' rent as a deposit. It varies from PG to PG..
It is refundable??
Yes, in most cases deposits are refundable. but again it varies from PG to PG.
- Owners usually deduct charges for damages or unpaid dues.
- Some PGs keep a non-refundable portion (like 10–20%) as maintenance.
- Refunds often depend on whether you give proper notice before leaving (usually 1 month).
How to protect your deposit
- Get everything in writing – Ask for a receipt or agreement mentioning the deposit amount and refund terms.
- Take pictures/videos of the room when you move in—so you can prove damages weren’t your fault.
- Clarify notice period before signing up.
- Keep all payment proofs (UPI, bank transfer, etc.).
- Follow the rules (like no damage, no unpaid bills) to avoid deductions.
Final thoughts
A PG deposit might feel like just another extra expense, but it’s honestly part of the system everywhere. The important thing is making sure you know the rules before you move in. If you clear things upfront—like how much you’ll get back, what counts as damage, and how much notice you need to give—you’ll save yourself from a lot of stress later.
And remember—don’t be afraid to ask questions before you pay. It’s always better to be sure than to regret later.
