How to manage a PG: rent, deposits and tenant records

Why PG records drift

A PG changes every week. A tenant moves rooms, another gives notice, a new one moves in halfway through the month. A notebook or a spreadsheet works when there are a few beds and one person keeping it. It drifts when the bed list, the rent list and the deposit list are kept in different places, because one move-out has to be written in all three, and usually is not.

The deposit is where drift costs the most. A security deposit is money held as security for an agreement, so at move-out it is either paid back or reduced by deductions both sides can see. Agree in writing at move-in what it can be used for, such as unpaid rent or damage beyond ordinary wear and tear, which is damage that happens naturally through normal use. Move-out then becomes arithmetic instead of an argument.

The four records every PG needs

• Tenant and bed register. Name, phone, bed or room, plan, move-in date, notice date and status. Keep one row per tenancy, not per person, so a room change closes one row and opens another.
• Rent ledger. For each tenant and month: rent due, any extras, what was paid, when, and by which mode (cash, UPI or bank transfer), with the balance carried forward.
• Deposit record. The amount and the date it was paid, then at move-out each deduction with its reason, the refund and the date it was paid back.
• Documents. Which identity documents and agreements are on file for each tenant, and which are still missing. Keep copies where only you and your staff can open them.

A monthly rent run

1. Fix one billing date. Bill every tenant on the same day of the month, or each on their move-in date, and keep to it.
2. Raise the month’s rent. Raise rent for every active tenancy, prorated for anyone who moved in or out during the month.
3. Record payments as they arrive. Note the mode and the reference of each UPI or bank payment on the day it arrives, not at the end of the month.
4. Follow up the balances. A few days after the due date, list the tenants with an unpaid balance and follow each one up.
5. Close the month. Check that the rent raised, minus the payments received, equals the list of balances still owed.

An example: a tenant moves in on the 21st of a 30-day month at ₹9,000 a month. Rent for the first part-month is ₹9,000 ÷ 30 × 10 days = ₹3,000, and the full ₹9,000 from the next billing date.

Move-out without an argument

1. Take notice in writing. Note the date the notice was given and the last day of the stay.
2. Check the room with the tenant. Walk through it together and note any damage beyond ordinary wear and tear.
3. Settle rent to the last day. Work out the rent still owed up to the last day.
4. Record each deduction with its reason. One line per deduction, with the amount, so the tenant can see how the refund was worked out.
5. Refund the balance and record it. Pay back what is left and record the date and the mode, then mark the bed free.

An example: a deposit of ₹18,000, unpaid rent for the last 5 days of ₹1,500 and a broken cupboard lock at ₹500. The refund is ₹18,000 − ₹1,500 − ₹500 = ₹16,000.

Notebook, spreadsheet or PG software?

A notebook is fine for a few beds run by one person. Software starts to pay for itself when there are staff, more than one building, or frequent move-ins and move-outs.