A PG agreement is a legal contract — not a formality. Most deposit disputes, rent hikes and eviction fights trace back to a clause nobody bothered to read. This checklist covers the 15 clauses that actually matter in a Delhi PG agreement, the deposit and deduction rules under the Rent Control Act, and the red flags that mean you should put down the pen and walk away.
Is a written agreement even required?
Yes. Under the Delhi Rent Control Act and general contract law, any paid accommodation requires a written agreement to enforce either party's rights. Verbal "trust" arrangements are unenforceable — if the owner decides to triple the deposit deduction or evict you with 24 hours' notice, you have no legal standing. Always insist on a written agreement on ₹100 stamp paper, signed by both parties, with two witnesses.
Clause 1 — Parties and property description
The agreement should name both the owner (with Aadhaar/PAN reference) and you, and describe the exact property — full address, floor, room number, and which amenities are covered. If you're sharing a room, the agreement should specify your bed number and roommate arrangement. Ambiguity here lets the owner move you to a lower-quality room later.
Clause 2 — Monthly rent and what's included
State the exact rent amount in numbers and words. Crucially, list what is included: meals (how many per day), WiFi, electricity (with or without cap), water, housekeeping, laundry. If electricity is "capped at X units" anything beyond that is extra — get the per-unit rate in writing. The biggest hidden-cost scam is the AC surcharge: some PGs quietly add ₹2,000-₹3,000 per month from April to September. Lock the number in the agreement.
Clause 3 — Security deposit amount and refund terms
Standard PG deposit in Delhi is 1-2 months' rent. Anything above 2 months is excessive; above 3 is potentially illegal under the proposed Model Tenancy Act. The agreement must state: deposit amount, interest (if any), refund timeline after move-out (ideally within 15 days), and the exact grounds for deduction. If the owner says "we'll figure it out at move-out," walk away.
Clause 4 — Deduction grounds (itemised)
This is where disputes are won or lost. The agreement should itemise exactly what the owner can deduct for: painting (usually ₹500-₹1,500 flat), damaged furniture (only actual cost, not "replacement value" of antiques), cleaning beyond normal, unpaid utility bills. Anything not itemised should not be deductible. Photograph this clause on your phone.
Clause 5 — Notice period
30 days is standard. The agreement should be clear on both sides: owner gives you 30 days' notice before asking you to vacate; you give 30 days before leaving. Mid-month moves should be prorated. If the clause says "1 month's rent in lieu of notice" on your side but not the owner's, that's asymmetric — ask to make it mutual.
Clause 6 — Rent increase policy
Under Delhi's rental norms, landlords cannot hike rent arbitrarily during the agreement term. Most 11-month PG agreements lock in the rent. At renewal, a 5-10% hike is typical; double-digit hikes are negotiable. Ask for this to be explicit: "Rent will not be increased during the 11-month term. Any increase at renewal will not exceed 10%."
Clause 7 — House rules and penalties
House rules on visitors, in-out timings, noise, cooking, and pets should be listed. What matters is the penalty structure: some PGs charge ₹500 per "late entry" after 11 p.m., which can add up quickly. Read these carefully and negotiate if any feel unreasonable. Also verify that rules apply equally regardless of gender — asymmetric curfews on girls are common and often contestable.
Clause 8 — Visitor policy
Who can visit, for how long, whether they can stay overnight, whether there's a guest charge. Parents visiting for two days should never be charged guest fees. A same-gender friend for dinner should not require a written permission. Ensure the agreement reflects reasonable flexibility.
Clause 9 — Repairs and maintenance
Clarifies who pays for what. Typically: landlord handles structural issues (leaking walls, plumbing, electrical), tenant handles personal damage. Get a clause that says maintenance requests will be resolved within X days (usually 7). Otherwise you can be stuck with a broken geyser for a month while the owner claims "no plumber available."
Clause 10 — Utilities (electricity, water)
Specify: flat rate or metered, unit cap if any, per-unit rate above cap, frequency of billing, payment deadline. Be wary of "actual consumption" clauses without meter access — the owner can inflate your bill arbitrarily. Water is almost always included in Delhi PGs; if charged separately, that's unusual.
Clause 11 — Force majeure (pandemic, relocation)
Post-2020, good agreements include a clause for what happens in force majeure events — can you break the lease without penalty if a lockdown forces you home? This protects you for situations like your college going online or a family emergency.
Clause 12 — Jurisdiction and dispute resolution
Most agreements name a specific Delhi court. Try to include a mediation-first clause: "Disputes will be first attempted through mediation before court." It's cheaper and faster if something goes wrong.
Clause 13 — Termination for cause
When can the owner evict you immediately? Standard causes include non-payment of rent for 2+ months, substance-related incidents, or serious misconduct. "Owner's discretion" is not a valid cause — push back on vague language.
Clause 14 — Rules change policy
Some owners insert a clause saying "house rules may be updated at owner's discretion." Ask that any new rules during your term require 30 days' notice and not retroactive penalties.
Clause 15 — Signatures, witnesses, and stamps
Delhi agreements should be on ₹100 non-judicial stamp paper, signed by you and the owner, with two witnesses (name, address, signature). You should receive an original signed copy — not a photocopy. If it's a notarised version, even better.
Red flags that mean walk away
- Owner refuses a written agreement or insists on verbal only.
- Deposit demand greater than 2 months' rent.
- Agreement demands full year's rent upfront.
- "Owner's discretion" language on rules, fees or eviction.
- No itemised deduction list.
- Rent printed as blank and filled in after signing.
- No refund timeline on deposit.
- Refusal to let you take the agreement home to read.
What to do after signing
Keep the signed original in a safe place and a scanned copy on cloud. Save the owner's contact, Aadhaar/PAN copy, and bank details. Pay all rent via UPI or bank transfer — never cash — and keep the transaction reference. Request a signed, dated receipt every month. If the owner later claims "you didn't pay April," your bank statement is your proof.
At Kangaroo House, we use a standard agreement format across all 6 properties, available for you to read in full before your visit ends. No surprises, no last-minute clauses, no informal "we'll figure it out." You can request a sample agreement before booking a visit.
See the Kangaroo House agreement before you visit
Request our standard PG agreement template — same terms across all 6 properties.
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