The PG Owner's Glossary: 30 Terms Explained in Plain Language

Running a PG means picking up a new vocabulary fast: occupancy rate, sub-meter, notice period, MDR, police verification. Some terms come from property, some from payments, some from everyday operations, and most are never explained in one place. This glossary gathers 30 of the most useful ones, in simple language, grouped by theme so you can jump to what you need.

A note on accuracy: these are plain-language explanations of common usage, not legal definitions. Tenancy, tax, and payment rules vary by state and can change, so confirm the details that matter with your bank, a local professional, or the relevant authority.

Money and Billing

1. Rent due date and grace period. The due date is the day each month rent is payable. A grace period is the extra time you allow, if any, before a late fee applies. State both in the rent agreement. In MyPG: automatic and manual rent reminders.

2. Late fee. A charge for paying after the due date or grace period. It should be agreed in advance, kept reasonable, and applied equally to every tenant. Check local rules before charging one.

3. Security deposit. A refundable amount collected at move-in to cover unpaid dues or damage beyond normal wear, as set out in the agreement. At checkout, any deduction should be itemized and the balance returned. Amounts and rules vary, so check your agreement and local requirements.

4. Rent receipt. Written or digital proof that rent was paid. It settles "I already paid" disagreements and gives tenants a record for their own purposes.

5. Bed-wise billing. Each tenant pays only for their own bed, even in a shared room. It suits triple- or quad-sharing rooms where tenants don't know each other beforehand.

6. Room-wise billing. One fixed rate for the whole room, whether one tenant or several occupy it. It suits private or double rooms.

7. Break-even point. The minimum rent per bed that covers your monthly costs. Add up rent or EMI, electricity, water, staff, food, internet, and upkeep, then divide by the number of beds. Pricing below it loses money.

8. MDR (Merchant Discount Rate). A fee a merchant pays for accepting a digital payment, deducted from the amount settled to the merchant. The person paying is not charged. According to the government's official FAQ, a 0.4% MDR on select UPI person-to-merchant payments above ₹2,000 was set to apply from 15 October 2026, capped at ₹300 per transaction, with small merchants below a monthly limit exempt. How it applies to your account depends on your bank and payment provider, so check with them directly.

9. P2P and P2M. P2P means person-to-person, such as sending money to a friend. P2M means person-to-merchant, such as paying a business. Which one applies to your account affects whether MDR can apply, so confirm how your bank classifies it.

Tenancy and Paperwork

10. Rent agreement. The signed contract that sets rent, deposit, notice period, and house rules. Registration and stamping requirements vary by state, so confirm yours locally.

11. Notice period. The advance warning a tenant, or the owner, must give before the tenancy ends. It should be written in the agreement and explained at move-in.

12. Lock-in period. A minimum stay, if agreed, during which leaving early carries a penalty. It only works if it's clearly stated in the agreement.

13. Move-in (onboarding). Everything from booking to the tenant settling in: agreement, ID, verification, room condition, and house rules. See our onboarding checklist for the full sequence.

14. Checkout (move-out). The process when a tenant leaves: confirm the notice, settle dues, inspect the room together, itemize any deductions, refund the deposit, and mark the bed vacant. In MyPG: tenant checkout in the application.

15. Police verification. Registering a tenant's details with the local police, which many cities require of owners. The process and portal vary by city. In MyPG: police verification completed in the application, without visiting a station.

16. KYC (Know Your Customer). Verifying a tenant's identity through valid photo ID and address proof. In a PG, this means collecting and recording ID documents at onboarding.

17. House rules. Written rules on timings, visitors, noise, and shared spaces. They work best when they're short, specific, shared at move-in, and applied equally.

Operations and Property

18. Occupancy rate. The share of your beds that are filled: occupied beds divided by total beds, times 100. If 38 of 40 beds are filled, occupancy is 95%.

19. Vacancy. An empty bed or room. Every vacancy still carries fixed costs, so the time it stays empty matters. In MyPG: review new inquiries and move them forward to refill beds.

20. Sharing type. How many tenants share a room: single, double, triple, and so on. It strongly affects pricing and who the room suits.

21. Sub-meter. A separate electricity meter for a room or floor, connected after the main meter, to measure its own usage. Passing on electricity at your actual cost per unit, not a markup, is the safe principle. Rules vary, so check with your electricity provider.

22. Smart meter. A meter that records usage electronically and can share readings automatically instead of someone reading it by hand. In MyPG: smart meter management, with readings and the related dues handled automatically.

23. Common-area electricity. Power used by corridors, pumps, and shared lighting. It's usually built into rent or split among tenants, and the method should be in the agreement.

24. Housekeeping. Routine cleaning of common areas, bathrooms, kitchens, and sometimes rooms. In MyPG: the daily housekeeping option and the daily checklist.

25. Mess management. Running the food service: menus, timings, hygiene, and costs. It's one of the most common sources of tenant feedback, good and bad.

26. Preventive maintenance. Scheduled checks and servicing that catch problems before they fail, as opposed to repairing things only after a complaint.

Growth and People

27. Tenant churn. How often tenants leave. High churn means constantly refilling beds. Our guide on reducing tenant churn covers the usual causes.

28. Retention. Keeping tenants longer, the opposite of churn. Quick complaint resolution, consistent rules, and a good reputation all help, as discussed in our guide to online reviews and local reputation. In MyPG: complaints can be checked, assigned, answered, and resolved in one place.

29. Lead (inquiry). A prospective tenant who has shown interest. Replying quickly and following up matters, since many leads decide within a day or two. In MyPG: review new inquiries and move them to the next steps.

30. Warden. The person responsible for on-site supervision: rules, security, and day-to-day tenant concerns. See our guide to staff management for PGs for how to set up roles clearly.

Frequently Asked Questions

Where should a new PG owner start?

Start with the money and paperwork terms: rent due date, security deposit, rent agreement, and notice period. Getting those clear at the start prevents most early disputes.

Are these terms legally defined?

Mostly, no. They're common usage in PG and rental management. Where a term has a legal meaning, such as deposits, notice, or verification, the rules vary by state, so confirm with a local professional.

Which terms matter most for profitability?

Break-even point, occupancy rate, and tenant churn. Together they show whether your pricing covers costs, how full you are, and how often you're refilling beds.

A shared vocabulary makes running a PG simpler, whether you're explaining a rule to a tenant, talking to staff, or comparing tools. Bookmark this glossary, and if you're growing beyond one property, our guide to managing multiple PGs shows what to put in place next.

With MyPG's rent reminders, smart meter management, in-app police verification, tenant checkout, complaint tracking, inquiry follow-up, daily housekeeping, and daily checklist, many of these terms turn from vocabulary into things that simply get done.