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Moving to Kota, Hyderabad or Delhi for JEE or NEET coaching usually means two contracts: one with the institute and one with whoever gives you a bed. The second is often signed on arrival day, bags still in hand. Here is what to read and get in writing before you pay.
What does the law say about PG deposits and agreements?
The Model Tenancy Act, 2021 was approved by the Union Cabinet on 2 June 2021 as a model for states and union territories to adopt, not a law that applies everywhere on its own.
Its numbers are still a useful yardstick. Under the Act, a security deposit for residential premises should not exceed two months' rent (Model Tenancy Act, section 11). The same section says the deposit is refunded on the date the landlord takes back vacant possession, after deducting anything the tenant owes. The Act also asks for a written agreement signed in duplicate, a signed receipt for every rent payment, and at least 24 hours' notice, in writing or electronically, before the landlord enters, except in emergencies.
One catch: the Act's definition of premises leaves out lodging houses and hotels, and some PGs work more like lodging houses than flats. Treat its terms as a benchmark, and check your state's rent law.
If the hostel belongs to the coaching centre, a second document matters. The Ministry of Education's Guidelines for Regulation of Coaching Center, sent to states on 16 January 2024, say a student who has paid in full and leaves midway should get a pro-rata refund for the remaining period within 10 days, and that hostel and mess fees are refunded too. States decide whether to adopt these guidelines, so ask the centre for its written refund policy.
What should a PG rent agreement for coaching students include?
Anything missing? Ask for it in writing; even a WhatsApp message beats a spoken promise.
Deposit: the amount, whether all of it is refundable, the date it comes back, and the exact list of deductions. "Cleaning charges" should have a rupee figure, not "as applicable".
Notice period: how many days' notice you must give, how you give it, and what happens to the deposit if you leave before any lock-in ends. Coaching plans change, so a long lock-in is a real risk.
What the rent covers: electricity (fixed, or metered at what rate per unit), water, Wi-Fi, laundry and room cleaning.
Meals: how many a day, the timings, whether food is kept aside if classes run late, and any rebate when you are away.
House rules: entry and exit times, guests, cooking appliances, and who may enter your room and when.
Room condition: a list of furniture and fittings, with any existing damage noted.
Fee changes: whether rent or mess charges can rise mid-session, and with how much notice.
How do you get your PG deposit back?
Video every wall, fitting and piece of furniture when you move in, and send the clip to the owner on WhatsApp so it is dated. Pay by UPI or bank transfer, not cash, and keep every receipt.
The Model Tenancy Act caps a residential deposit at two months' rent.
When you leave, give notice in writing on the date the agreement requires. Return the keys against a written acknowledgement and ask for the deposit to be settled that day, which is when the model law expects it.
What can you say if the terms are vague?
On the first visit, a parent can say:
"We like the room. Before we pay, could you write three things on the agreement or receipt: the deposit amount and the date it comes back, which deductions you can make, and the notice period if our child leaves early? Then we'll transfer the money today."
An owner who will not write anything down is telling you how a refund will go.
Where can you complain if a refund is refused?
For a coaching centre's own hostel, start with the centre's grievance committee, which the Education Ministry guidelines ask every centre to set up. You can also file a complaint with the National Consumer Helpline by calling 1915, or through its app or WhatsApp. Students have used it: the Department of Consumer Affairs helped over 600 students recover Rs 1.56 crore from coaching institutes through helpline grievances, All India Radio reported in February 2025. For a private PG, a local lawyer or legal aid service can tell you which rules apply in your state.
Next, read our guide to setting up a hostel or PG for exam prep. Still deciding? See moving cities for coaching or staying home and how to evaluate a coaching institute before you pay the fee.
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