So you want to run aPG / co-living
Can a PG with every bed full still lose money? A reel with 2.9 million plays says a PG for boys earns ₹1,80,000 a month. J builds one on paper: a rented ₹62,000-a-month house in Marathahalli, Bengaluru, 24 beds at ₹7,500 with food, ₹10.25 lakh to set up, and opens the book line by line. On the way: who cooks for 24, the empty summer, the High Court's 80 directions, the Delhi PG collapse, the co-living giants, and the one owner who is smiling.
₹1.8 lakh a month from one rented house
A reel with 2.9 million plays: “Don't spend ₹1 lakh on a bike. Start a PG for boys and earn ₹1,80,000 a month.”
The flaw
₹1.8 lakh is what comes in when every bed is full. Rent, food, two wages, commercial power and tanker water take ₹2,21,226. Every bed would have to pay about ₹9,200 with food to break even, on a street that sells it for ₹7,000. Across a year with an empty summer J loses about ₹53,000 a month.
Run J's numbers
The defaults are the exact worked example from the episode. Move any slider to your own quote.
23 out of 70
Seven questions, ten points each — higher is better on every one. The red tick is the season average so far.
“A PG doesn't sell beds. It sells the owner's time, and the landlord gets paid first.”
Two years, run two ways
The good version
J 2.0: no kitchen, power billed by the meter, licence before the first tenant, a five-year lease. About +₹20,282 a month across the year; the ₹10.25 lakh back in a little over four years, if nothing breaks. A 7% FD would pay about ₹6,000 a month.
The realistic version
What the reel said: 24 beds with food at ₹7,500, topping up the loss from savings, about −₹53,000 a month across the year. In month nine the keys go back to the landlord and the bunk beds sell for a third of their price.
J's checklist
- Start with the building, not the beds. Renting? One bed must pay about ₹9,200 with food, and price the empty summer.
- Licence first, then the beds: trade licence, staff police verification, fire safety, corridor CCTV, a night guard.
- Bill power by the meter, one per room. A PG may pay the commercial rate (₹7.10 a unit + ₹235/kW).
- Decide on food first: a kitchen for 24 costs about ₹72,000 a month plus a cook. Many PGs now sell beds without food.
- Fix the lease: a long lock-in, a fixed yearly rise in writing, and who pays for repairs.
- Deposits are tenants' money: write down the refund rules and notice period, and pay back on time. Three-month stays keep you inside the GST exemption.
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PG / co-living — Calculator
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DownloadWhere the numbers come from
Every number in the episode, and where it came from. Claims in posts and videos are their authors' claims.
Reports: the market, rents and bed prices
• Colliers via The Realty Today (≈3 lakh organised beds vs ≈66 lakh demand; leases 3–9 years): https://therealtytoday.com/news/indias-co-living-market-set-to-cross-1-million-beds-by-2030-colliers-report/ ; https://timesofoman.com/article/157826-indias-co-living-market-inventory-set-at-1-million-beds-by-2030-colliers
• NOESIS via Urban Living News (Bengaluru ≈50,000 beds demand vs 18,000–22,000 organised): https://urbanliving.news/?p=37633
• The Core (NoBroker data: city rents +35–80%, 2020–24): https://www.thecore.in/podcasts/the-catch-behind-indias-co-living-boom-842841
• NoBroker PG listings, Marathahalli (our snapshot, 1 Nov 2026): https://www.nobroker.in/pg-in-marathahalli_bangalore
• NoBroker 4BHK houses, Marathahalli (₹62,000, 2,500 sq ft, deposit ₹1.25L): https://www.nobroker.in/4bhk-flats-for-rent-in-pr_layout_marathahalli_bangalore
• Stanza Living Bengaluru price bands and stay terms: https://www.stanzaliving.com/pg-in-bangalore
• RentOk, money required to start a PG in 2026 (setup ranges): https://wb.rentok.com/growth/money-required-to-start-a-pg-in-2026/
• Colive blog (students spend ₹3,000–5,000 a month on food): https://www.colive.com/blog/cost-of-living-in-bangalore-2026-students-vs-professionals/
• India co-living faces 22-fold supply deficit: NOESIS (RealtynMore (NOESIS)): https://realtynmore.com/india-co-living-market-faces-22-fold-supply-defici/embed/
• PGs in HSR Layout (25 of 127) (NoBroker): https://www.nobroker.in/pg-in-hsr-layout_bangalore
• PGs in Electronic City (25 listings) (NoBroker): https://www.nobroker.in/pg-in-electronic-city_bangalore
• PGs in Hinjewadi, Pune (25 listings) (NoBroker): https://www.nobroker.in/pg-in-hinjewadi_pune
• PGs in Gachibowli, Hyderabad (25 listings) (NoBroker): https://www.nobroker.in/pg-in-gachibowli_hyderabad
• Flats for rent, Marathahalli (26 listings) (NoBroker): https://www.nobroker.in/3-bhk-flats-for-rent-in-marathahalli_bangalore
• PG detail, Anand Nagar Marathahalli (NoBroker): https://www.nobroker.in/property/pg/pg-hostel-for-boys-in-marathahalli-bangalore-for-rs-6500/8a9fab849496b852019496ee98c013b7/detail
• PG detail, Marathahalli Village (NoBroker): https://www.nobroker.in/property/pg/pg-hostel-for-boys-in-marathahalli-bangalore-for-rs-7000/8aa9a20aa190e17801a1911e896721ee/detail
• PG detail, Brookefield (NoBroker): https://www.nobroker.in/property/pg/pg-hostel-for-girls-in-brookefield-bangalore-for-rs-7500/8aa9bad4a0a9fe4b01a0aa02f865008f/detail
• PG detail, Outer Ring Rd (NoBroker): https://www.nobroker.in/property/pg/pg-hostel-for-anyone-in-marathahalli-bangalore-for-rs-15000/8aa99184a190e13e01a190f9547c0f07/detail
• PG detail, Udupi Park Marathahalli (NoBroker): https://www.nobroker.in/property/pg/pg-hostel-for-boys-in-marathahalli-bangalore-for-rs-10000/8aa99dea9ca8a326019ca8d160bf1369/detail
• PG detail, Varthur Rd (NoBroker): https://www.nobroker.in/property/pg/pg-hostel-for-boys-in-marathahalli-bangalore-for-rs-8000/ff80818150c8d9d90150cbde7c9b0875/detail
• 4 BHK independent house HSR Layout (NoBroker): https://www.nobroker.in/4-bhk-house-for-rent-in-sector-3-hsr-layout-bangalore
• 4 BHK for rent Electronic City and nearby (list page) (NoBroker): https://www.nobroker.in/4bhk-flats-for-rent-in-electronic_city_bangalore
• 4 BHK for rent BTM Layout and nearby (list page) (NoBroker): https://www.nobroker.in/4bhk-flats-for-rent-in-btm_layout_bangalore
• How to calculate your PG's break-even occupancy (RentOk): https://wb.rentok.com/?p=3950
Tariffs, wages, water and tax
• Karnataka minimum wages, May 2026: https://www.india-briefing.com/news/karnataka-minimum-wage-overhaul-2026-rates-zones-compliance-mandates-45289.html ; https://factohr.com/?p=24375 ; legal challenge: https://knowledge.dlapiper.com/dlapiperknowledge/globalemploymentlatestdevelopments/2026/karnataka-introduces-major-minimum-wage-reforms-despite-ongoing-legal-uncertainty
• KERC commercial tariff (₹7.10 a unit + ₹235/kW), ThePrint (PTI), 4 Mar 2026: https://theprint.in/india/kerc-increases-electricity-tariffs-for-commercial-industrial-consumers/2869823/
• Water (135 litres a person a day; tanker prices; owners' occupancy claim), The News Minute: https://www.thenewsminute.com/karnataka/whats-changed-in-bengalurus-pgs-since-a-womans-murder-in-koramangala-tnm-investigates ; https://thenewsminute.com/karnataka/bengaluru-after-brutal-murder-bbmp-tightens-rules-for-paying-guest-accommodations
• GST exemption for PG/hostel stays up to ₹20,000 a month and 90+ days, Notification 04/2024-Central Tax (Rate): https://www.gstcouncil.gov.in/sites/default/files/2024-09/central-tax-rate-04-2024-12072024.pdf
• GST Council recommends exempting PG hostel accommodation (Careers360): https://news.careers360.com/gst-council-tweaks-tax-rates-waives-interest-exempt-pg-hostel-accommodation-college
• GST on hostels/student residences post July 2024 (CAClubIndia): https://www.caclubindia.com/articles/gst-on-hostels-student-residences-changes-post-july-2024-52271.asp
• BESCOM tariff for apartments/commercial use (Citizen Matters): https://citizenmatters.in/bescom-south-city-electricity-tariff-rates-apartments-stp-fire-hydrants/
Rules, sealing and incidents
• Karnataka High Court, 80 directions (Sep 2026), LiveLaw: https://www.livelaw.in/high-court/karnataka-high-court/karnataka-high-court-flags-massive-illegal-pg-operations-bengaluru-550527 ; sealing warning (27 Oct 2026): https://www.livelaw.in/high-court/karnataka-high-court/karnataka-high-court-warns-pg-owners-sealing-directs-affidavit-compliance-timeline-556239
• CCTV and safety norms, Siasat: https://www.siasat.com/karnataka-hc-lays-down-strict-safety-norms-for-bengaluru-pgs-3544064/
• 3,597 of 5,480 PGs without a licence: https://www.thehansindia.com/news/cities/bengaluru/3597-pgs-in-bengaluru-operating-without-licences-1135877 ; https://www.oneindia.com/bengaluru/over-3-500-bengaluru-pgs-face-sealing-as-karnataka-high-court-backs-gba-crackdown-8243497.html
• Food-safety drive (64 inspected, 23 notices), India TV: https://www.indiatvnews.com/karnataka/bengaluru-pgs-under-scanner-23-served-notices-over-food-safety-and-hygiene-violations-2026-09-04-1053354
• Kundalahalli co-living PG cylinder explosion, Dec 2025, The News Minute: https://www.thenewsminute.com/amp/story/karnataka/bengaluru-pg-fire-bbmp-failed-to-act-on-demolition-order-residents-allege
• Delhi Satya Niketan PG collapse and MCD survey (31 of 2,453 with a fire certificate): https://www.businesstoday.in/india/story/1-2-buildings-with-fire-noc-less-than-30-have-sanctioned-plans-mcd-surveys-shocking-findings-after-satya-niketan-pg-collapse-555562-2026-09-15 ; https://www.outlookindia.com/national/delhi-pg-survey-just-12-have-fire-nocs-only-8-have-structural-stability-certificates ; https://dailypioneer.com/news/delhi-pg-safety-audit-leaves-students-uncertain-as-buildings-sealed
• India Today, "Ground Report: PG Owners Deny Refunds, Harass Evacuating Students" (8 Sep 2026): https://www.youtube.com/watch?v=hSNF_QrdvXg
• Pune: 11 PGs sealed (ThePrint, PTI): https://theprint.in/india/11-pg-hostels-sealed-in-pune-for-fire-safety-violations/3047014/ ; 13 shut (Free Press Journal): https://www.freepressjournal.in/pune/pune-13-pgs-7-scrap-units-ordered-shut-over-fire-safety-violations
• Half of Bengaluru East PGs inspected are illegal, GBA tells Karnataka HC (The News Minute): https://www.thenewsminute.com/karnataka/half-of-bengaluru-east-pgs-inspected-are-illegal-gba-tells-karnataka-hc
• 14 PG accommodations sealed in Bengaluru for violating SOP guidelines (The Week (PTI)): https://www.theweek.in/wire-updates/national/2025/11/18/srg3-ka-pg-accommodation-seal.html
• Bengaluru PG crackdown: High Court warns operators after 1,500 inspections (LawTrend): https://lawtrend.in/?p=350461
• Blaze at PG facility in Mukherjee Nagar (Tribune India): https://www.tribuneindia.com/news/delhi/blaze-at-pg-facility-in-delhis-mukherjee-nagar-fire-officer-says-all-evacuated-safely-548313
• Kota hostel fire (ETV Bharat): https://etvbharat.com/en/!state/7-students-jump-off-roof-after-fire-breaks-out-in-kota-hostel-hospitalised-enn24041402133
• Fire NOC in Karnataka 2026: the 21 m rule (CalcGuru): https://calcguru.in/?p=8048
Company filings: the co-living companies
• Stanza Living FY25 (₹545 cr revenue, ₹130 cr profit from ₹277 cr other income, FY24 loss ₹273 cr), Entrackr: https://entrackr.com/fintrackr/stanza-living-turns-profitable-in-fy25-on-the-back-of-rs-277-cr-other-income-11182713 ; FY23 (₹2.16 per ₹1): https://entrackr.com/2024/03/stanza-living-posts-rs-442-cr-revenue-and-rs-495-cr-loss-in-fy23
• Zolo FY25 (operating loss ≈₹35 cr), Ascendants: https://ascendants.in/business-stories/zolostays-fy25-results-revenue-342-cr-losses-narrow/ ; student arm sold for ₹108 cr, Entrackr: https://entrackr.com/exclusive/exclusive-zolostays-sells-college-accommodation-biz-to-good-host-spaces-for-rs-108-cr-8950000
• NestAway sold for ≈₹90 cr after raising ≈₹905 cr, OfficeChai: https://officechai.com/startups/nestaway-sold-for-rs-90-crore-after-raising-rs-905-crore-from-investors-over-8-years/
• Colive FY24 (≈₹40 cr revenue, ≈₹65 cr expenses), Inc42: https://inc42.com/company/colive/financials/
• Isthara FY23 (canteen ≈41% of revenue, our division), Inc42: https://inc42.com/?p=439428
• Settl deposit refund delays, Inc42: https://inc42.com/buzz/settls-tenants-allege-delay-in-security-deposit-refunds-report/
• Founder quotes (2019, incl. 75:25 profit sharing), Inc42: https://inc42.com/features/can-coliving-startups-stand-up-to-the-challenge-of-redefining-homes-for-young-india/
• Stanza Living to raise $32 Mn in down round (Entrackr): https://entrackr.com/exclusive/exclusive-stanza-living-to-raises-32-mn-from-accel-motilal-oswal-in-down-round-10597776
• Zolostays hits Rs 200 Cr revenue in FY24, trims losses (Entrackr): https://entrackr.com/fintrackr/zolostays-hits-rs-200-cr-revenue-in-fy24-trims-losses-8642806
• Aurum acquires Tiger Global-backed NestAway at 95% valuation cut (Entrackr (Aurum/NestAway)): https://entrackr.com/tag/nestaway/
• Once valued at $220m, NestAway being sold to Aurum for $11m (DealStreetAsia): https://www.dealstreetasia.com/?p=346346
• Stanza Living profile (Preqin): https://www.preqin.com/data/profile/asset/stanza-living/253401
• Stanza Living to raise $32M led by Accel (Venture Intelligence): https://news.ventureintelligence.com/private-equity/managed-accommodation-provider-stanza-living-to-raise-%2432-m-led-by-accel
• Housr financials (Inc42): https://inc42.com/company/housr/financials/
• Settl financials (Inc42): https://inc42.com/company/settl/financials/
• Stanza Living homepage (Stanza Living): https://www.stanzaliving.com/
Posts, reels, listings and videos (claims by their authors)
• @middle_class_ceo reel (2.9M plays, ₹1,80,000 a month): https://www.instagram.com/p/DLp7cPmy5LS/
• @realtors_sm, 210-bed PG for sale, KPHB, Hyderabad: https://www.instagram.com/p/DcLPDpdJG2L/
• @direct_to_customerz, 105-bed PG for sale, Doddaballapur, Bengaluru: https://www.instagram.com/p/DdskoGuJKRr/
• Akash Bhardwaj, "How To Start PG Business" (₹2.5 lakh a month claim) and its comments: https://www.youtube.com/watch?v=ST_1bXXlVGM
• BRS SHOW, "PG Business in Delhi", Delhi viewer's comment (−₹18,000 a month): https://www.youtube.com/watch?v=3-_s0QPPT2Y
• Money Factory Telugu, "How To Start Pg Hostel Business" (10-year operator's reply on the ₹5 lakh claim): https://www.youtube.com/watch?v=PQ7W5Zn6nXk
• RentOk, "Modi ji, King of PG Business!!! 3500 beds in Ahmedabad": https://www.youtube.com/watch?v=roLpQYMXHu4
• RentOk, "Grow Your Property Renting Business!" (comment: "already lost 2 lakh"): https://www.youtube.com/watch?v=OcdL7Rga5_8
MUSIC
Music by Kevin MacLeod (incompetech.com), Licensed under Creative Commons: By Attribution 4.0
https://creativecommons.org/licenses/by/4.0/
Tracks: Rollin at 5 · Investigations · Spy Glass · Deliberate Thought · Mystery Sax · Somewhere Sunny · Lobby Time · Covert Affair · Thinking Music · Hidden Agenda · Long Note Two · Hitman · Dark Fog · Darkling · Wallpaper · Comfortable Mystery · The Lift · Airport Lounge · Gymnopedie No 1
J is a made-up character. Every price, rule, quote and post shown is real. Worked examples and the two-year scenarios are illustrations built from the numbers in the video. Education only — not financial, legal or tax advice. Rules and fees change; check the current terms before you act.