How To Convert Your Spare Flat into a Paying Guest Accommodation?

As the number of single professionals in Chennai is increasing, enquires for single bed rooms are pouring in. Brokers in most areas of Chennai have claimed that they receive enquiries for paying guest accommodations in Chennai that are near office areas and have markets located nearby. People from other states who relocate to the city for jobs prefer staying in PG or paying guest accommodations. Most of the units that they want to hire are furnished well with basic amenities required for a normal life.

Most of the paying guest in Chennai accommodations is available in areas such as Thiruvanmiyur within a price bracket of Rs 4000 to Rs 11,000 in a month. Areas such as Adyar, Medavakkam and Thorapakkam are some of the other neighbourhoods which have single bed apartments available within Rs 5000 to Rs 12000 as monthly rent. A lot of these PG accommodations offer features such as refrigerator, unlimited connectivity to the internet via Wi-Fi, LCD Television that comes with DTH connection, sofa in a common sitting place, dining table and two meals in a day. Other amenities available include study table, single bed and wardrobes and almirahs in every room for every individual separately.

Analysing the Demand

Most of the demand for paying guest accommodations comes from areas which are near the IT hubs of Chennai. For example, OMR, Sholinganalur and Karaipakkam are some of the most demanded neighbourhoods for rental property accommodation. The highest supply is in the locality of Thiruvanmiyur which is around 12kms from Chennai’s main corridor. The area has cheap connectivity to the industrial end of the city.

Of all neighbourhoods in Chennai, Medavakkam is neared to the Old Mahabalipuram Road which is the hub of IT companies and Sholinganallur. These areas have single bed accommodations available within Rs 5000 and Rs 8000 in a month. Most people who come to live in accommodations for paying guest in Chennai live in the city for roughly 3 to 4 months during their training period after which they are transferred to other cities. They prefer renting PG accommodations because they are cheaper and less permanent than a full apartment on rent. The deposit required for a PG is around Rs 20,000 or so while the monthly rent is around Rs 7000. For a rental apartment, the rent would be around Rs 12,000 for a 1BHK apartment while the deposit would be close to Rs 40,000. The rent includes meals, laundry and all other amenities. If one were to rent an apartment, they would still have to cook their meals and wash their own clothes. PG accommodations can be left whenever the tenant wants to whereas rental agreements need some time to be sorted out.

Because of the flourishing IT and automobile industry in Chennai, more numbers of people are looking forward to moving to Chennai. The city is known as the Detroit of India as almost 40 percent of the cars in the country are manufactured here. Moreover, car firms such as Nissan and Renault have their manufacturing units here. The IT industry along the ECR and OMR are doing very well and they employ a large population of the youngsters in the city. Those migrating from other states to the city for work enquire more about the single bed accommodations that are available. However, given the limited options, tenants may have to pay out more money for a paying guest in Chennai accommodation or they may have to resort to living in 1BHK apartments in their preferred localities.

If you have an apartment from which you want to earn higher rental returns, you may convert it to a PG. In order to make your spare apartment into a PG accommodation, you would have to get the necessary permissions from the local municipal authorities such as councillors and also obtain a no-objection certificate from the housing society in which your apartment is located.

In case your apartment is not already furnished, you would have to buy some basic furniture in order to rent out the apartment. If the apartment is a 2BHK one, then you could rent out both rooms each with twin beds. You can get a double bed room or twin cots. For buying the beds, you may have to invest around Rs 20,000. Moreover, you also have to get two almirahs or wardrobes for your tenants to keep their belongings in. This would set you back by almost Rs 30,000 or so. For the electronic gadgets in the apartment, you could opt for second hand products which are in working condition to save some money on the cost. Hire a cleaning staff and cook for keeping up the everyday chores of the apartment.

To run a paying guest accommodation, you need to be extra cautious about the security of the flat, especially if it is being rented out to women. If the building has the system of security guards, negotiate with them to be extra vigilant about the people approaching your apartment. You should also install deadbolts and cylindrical locks on the doors to keep the house protected. Having a collapsible gate installed is also not a bad idea. Make sure the main door has a peep-hole or magic hole on it.

As a landlord you have every right to decide what kind of tenant you want to sublet your apartment to. If you have reservations about non vegetarian food or alcohol, you should make it clear in your advertisement. To get good tenants for your accommodation for paying guest in Chennai, you can put up an advertisement online for free. Make sure you include a few pictures so that the prospective paying guest knows about the facilities that will be made available to him or her. Putting up advertisements online is a better idea than contacting a broker because brokers tend to put apartments on hold in search of higher rents as their commission would be more. You would be losing returns if you wait for some months especially if you have furnished the apartment newly.