Bengaluru’s PGs in Trouble: New Rules, Job Losses, and High Bills Cause Problems

Bengaluru: Paying Guest (PG) accommodations, a lifeline for students and working professionals in India’s tech capital, are facing a fresh wave of challenges. Just as the industry was beginning to recover from pandemic-induced losses, a triple blow, new civic norms, tech layoffs, and skyrocketing utility bills, is driving many PG operators to shut shop or run at heavy losses.

According to the PG Owners Welfare Association, nearly 25% of PGs across the city are operating at a loss, with at least two PGs shutting down in every locality over the past year. The situation is particularly dire in tech-heavy areas like Marathahalli and Sarjapur, where demand had once fueled a mushrooming of PGs.

“Only those with multiple branches can survive,” said Aruna Kumar D T, President of the PG Owners Welfare Association. “Single PG operators are the worst hit. Even those still in business are reporting a 20–25% drop in occupancy.”

BBMP Crackdown Post Crime Incident

The Bruhat Bengaluru Mahanagara Palike (BBMP) recently sealed nearly 100 PGs in Mahadevapura alone for operating without trade licences and failing to meet regulatory norms. The crackdown follows a murder case reported at a PG last August, which prompted both BBMP and Bengaluru Police to impose stringent safety and hygiene guidelines.

The new rules, while aimed at safety, have had unintended consequences. “Many PGs, especially in Marathahalli, were set up without proper approval to meet high demand. Now, most of them are shut,” said Sukhi Seo, Secretary, Bengaluru PG Owners’ Association.

One BBMP rule, which prohibits PGs on roads less than 40 feet wide, has particularly hit operators in residential areas.

Utility Tariffs Add to the Burden

Apart from compliance woes, rising water and electricity bills are making it difficult for PG operators to stay affordable. PG owners have appealed to the BBMP and the BWSSB to consider them as residential consumers to reduce utility tariffs.

“Most of our guests are students. We want to keep rents reasonable, but the cost of adhering to the new regulations and rising bills is unsustainable,” Seo added.

Hope on the Horizon?

So far, only about 2,500 PGs have registered with the BBMP, far fewer than the actual number operating in the city. Sources suggest this is largely because many PGs do not meet the current regulatory requirements.

In response to growing concerns from the industry, BBMP officials are now considering easing some norms, including the contentious 40-feet road width rule.

If implemented, these changes could offer some relief to PG operators struggling to keep their businesses afloat while continuing to serve thousands of young residents in India’s Silicon Valley.