Pricing your PG too high loses tenants. Too low hurts your margins. Here's how to find the sweet spot.
Rent is the single biggest lever in your PG's profitability, yet most owners set it by gut feel. A little structure gets you a price that fills beds and protects margins.
Start with your real costs
Add up rent or EMI, staff, utilities, food, maintenance, and a buffer for vacancy. Divide by your bed count to find the floor — the number below which you lose money. Never price beneath it to 'stay competitive'.
Benchmark the neighbourhood
- Check 5–10 comparable PGs within a 2 km radius.
- Compare like for like: sharing type, food, AC, and distance to transit.
- Note what the higher-priced ones offer that you could match.
You're not competing on price alone — you're competing on price for what's included.
Price the tiers, not just the PG
A single-occupancy AC room and a triple-sharing bed shouldn't sit at the same margin. Tiering by room type captures more value from tenants who want more, without pricing out those who don't.
Review rents once a year against costs and occupancy. When you can see collection and vacancy per bed at a glance, pricing stops being a guess.
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