When living in a Paying Guest (PG) accommodation, it’s important for both tenants and management to have a clear understanding of notice periods and deposit refunds. This ensures smooth move-ins, move-outs, and fair financial practices.

Here’s a detailed breakdown of our Notice Period and Deposit Refund Policy for tenants.

1. Notice Period Policy

Standard Notice Period

• All tenants are required to serve a 30-day notice before vacating the PG.
• Notice should be given in smart tenent application for proper record.

Example:

• If you plan to vacate on 30th June, notice should be given on or before 31st May.

Early Move-Out Without Notice

• If a tenant vacates without serving the 30-day notice, the security deposit will be adjusted towards the shortfall in notice period rent.

Example:

• Rent = ₹10,000/month
• Tenant gives notice on 15th June but leaves on 20th June (only 5 days’ notice)
• Deduction = Remaining notice shortfall (25 days’ rent) will be adjusted from the deposit.

Extension of Stay After Notice

• If a tenant gives notice but later decides to extend their stay, they must provide a fresh 30-day notice.

2. Deposit Refund Policy

Security Deposit Collection

• At the time of joining, tenants pay a refundable security deposit .

Refund Conditions

The security deposit will be refunded after:

1. Deducting any pending rent, electricity, or any pending charges.
2. Deducting for damages, breakages, or loss of PG property (if any).
3. Adjusting for shortfall in notice period, if applicable.

Example:

• Security Deposit Paid = ₹10,000
• Pending Electricity Bill = ₹1,000
• Damages = ₹2,000
• Final Refund = ₹10,000 – ₹3,000 = ₹7,000

Refund Timeline

• The deposit refund will be processed within 24-48 working hrs after the tenant vacates and clears all dues.

3. Common Scenarios

Scenario A: Proper Notice + No Dues

• Tenant gives 30-day notice, pays all bills, and no damages.
• Full deposit refunded.

Scenario B: No Notice + Dues Pending

• Tenant leaves suddenly without notice and has unpaid bills.
• Deposit adjusted for shortfall + bills, balance refunded if any.

Scenario C: Damages Found

• Tenant gives proper notice but damages furniture worth ₹3,000.
• Deduction for damages, balance refunded.

4. FAQs

Q1: Can I adjust my deposit against the last month’s rent?

• No. Rent must be paid monthly as per agreement. The deposit is separate and refundable only after vacating.

Q2: What if I leave before completing my minimum lock-in period?

• If your agreement has a lock-in clause (e.g., 6 months), leaving earlier will result in forfeiture of the deposit.

Q3: What happens if I give notice but don’t vacate on time?

• Additional days will be charged as per daily rent calculation.

Q4: Is the deposit interest-bearing?

• No. Security deposits are refundable but do not earn interest.

Q5: Can my deposit be transferred to another PG property?

• In some cases (if both properties are under the same management), transfer may be allowed. Otherwise, refund and fresh deposit apply.

Final Thoughts

Notice periods and deposit refunds are designed to bring clarity and fairness in shared living. By following a clear, written process, both tenants and management can avoid disputes.

Always remember:
✅ Serve notice in writing
✅ Clear all dues before vacating
✅ Take care of PG property to avoid deductions

This way, your exit will be as smooth as your stay.