Kaagazaat

PG Operator Lease

At a glance

Price: Free, always.
Stamp duty: A lease of a year or more carries stamp duty on a scale that rises with the term, and the two jurisdictions differ.
Registration: A lease for a term of more than one year must be registered (section 17(1)(d), Registration Act, 1908), and an unregistered one cannot be used to prove its terms (section 49).
Witnesses: Two witnesses are sensible: for a registered document both parties come to the Sub-Registrar with two identifying witnesses who carry original photo ID. Each witness writes full name, address and ID reference beside the signature.

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Free, always.

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Also called

PG building lease
paying guest house lease
hostel building lease
PG operator rent agreement
whole building rent agreement for PG
hostel operator lease

When you need it

Use this when you own a whole house or building and want to let all of it to a person or firm who will run it as a paying-guest house or hostel, taking in the guests and collecting their payments themselves. You are the lessor, the person running the PG is the operator, and the operator, not you, deals with the guests.

The document sets the term, a lock-in period, the rent and its yearly increase, the deposit, how many guests may be housed, the operator's duties about licences, police verification of guests and safety, and what happens to the guests when the lease ends. A lease of a year or more must be registered, and the stamp duty is higher than for an 11-month agreement; read the notes on stamping and registration before you sign. A building let for a business is not an ordinary home tenancy. Whether a rent Act reaches it, and which one, is a question for a lawyer, because Punjab has two rent laws, the Punjab Rent Act, 1995 and the East Punjab Urban Rent Restriction Act, 1949, split by the date of the letting and the kind of building. This document does not say which applies. Not for: one room or bed in a house where the owner lives (use the Paying Guest Agreement or the Bed Space Licence Agreement); a hotel or guest house (use the Hotel or Guest House Lease (Punjab and Chandigarh)); a student's own tenancy (use the Student Rent Agreement).

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

A lease of a year or more carries stamp duty on a scale that rises with the term, and the two jurisdictions differ. As published by the Revenue Departments and read on 6 September 2026: Chandigarh charges, in its row for a term up to five years, 2% of the annual average rent plus 3% of the refundable security deposit. For Punjab, read the lease rows of the Revenue Department’s table; its figure for one to five years looks out of line with the rows on either side and must be confirmed with the Sub-Registrar of the tehsil before you buy the stamp. Neither table is dated. An under-stamped lease cannot be used as evidence until the deficit and penalty are paid.

Registration

A lease for a term of more than one year must be registered (section 17(1)(d), Registration Act, 1908), and an unregistered one cannot be used to prove its terms (section 49). Present it to the Sub-Registrar within four months of signing, with both parties or their authorised representatives and two identifying witnesses. Registration fee, as read on 6 September 2026: Punjab 1% of the annual rent plus a facilitation charge and a pasting fee; Chandigarh 1% of the annual average rent, capped at ₹10,000, plus a pasting fee. Confirm both at the counter.

Notarisation

Not required, and not a substitute for stamping or registration. A notary only records that the signatories appeared and signed. Where the lease is registered, notarisation adds nothing.

Witnesses

Two witnesses are sensible: for a registered document both parties come to the Sub-Registrar with two identifying witnesses who carry original photo ID. Each witness writes full name, address and ID reference beside the signature. A witness is an adult who is not a party to the document.

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PG OPERATOR LEASE

This Lease is made at Chandigarh on 1 April 2026.

BETWEEN

Harpreet Singh, of House No. 45, Sector 21-C, Chandigarh (the "Lessor");

AND

Aarav Sharma, proprietor of Sharma Stays, of SCO 12, Sector 34-A, Chandigarh, acting through Mr Aarav Sharma, partner, under the partnership deed dated 3 January 2024 (the "Operator").

1. The lease

1.1 The Lessor lets to the Operator the whole of the building at Flat 804, Maya Garden City, Zirakpur, Punjab, described as ground floor plus two floors, 18 rooms, built-up area about 4,500 sq ft (the "Building"), for the term in clause 2.
1.2 The Operator uses the Building only to run a paying-guest house, taking in guests for a charge, with meals if the Operator chooses.
1.3 Not more than 40 guests may stay in the Building at one time.
1.4 The Lessor supplies these furniture, appliances and fittings, which the Operator returns in the same condition apart from ordinary wear: 18 beds, 18 wardrobes, 6 geysers, a fire extinguisher on each floor.

2. Term and lock-in

2.1 The lease begins on 2 April 2026 and ends on 1 April 2027, unless it ends earlier under this Lease.
2.2 For the first 12 months neither Party may end the lease early, except for the default in clause 9. After that either Party may end it by giving the other 60 days’ written notice.
2.3 The lease does not renew by itself or by the Operator staying on. A renewal needs a fresh written lease.

3. Rent

3.1 The Operator pays the Lessor rent of ₹1,80,000 (Rupees One Lakh Eighty Thousand only) a month, in advance, by day 7 of each month, by bank transfer or cheque, against a written receipt.
3.2 On each anniversary of the start date the rent rises by 5% of the rent then payable.
3.3 Each Party bears the taxes the law places on it in connection with this rent. Where the law requires the Operator to deduct tax before paying the rent, the Operator does so and gives the Lessor the certificate.

4. Security deposit

4.1 The Operator has paid the Lessor ₹5,40,000 (Rupees Five Lakh Forty Thousand only) as a refundable security deposit, which carries no interest.
4.2 The Lessor returns it within 30 days after the Operator hands back the Building empty of guests and belongings, less only unpaid rent, unpaid bills and the cost of repairing damage beyond ordinary wear, and shows the Operator the figures.

5. The Operator’s duties

5.1 The Operator obtains and keeps in force every licence, registration and permission that the law or the local authority requires to run a paying-guest house, including for food if meals are served, and obeys fire-safety and sanitation rules.
5.2 The Operator takes the identity details of every guest, gives them to the local police station as the local rules require, and keeps a register of guests that the Lessor may see on request.
5.3 The Operator pays the electricity, water, gas, internet and similar bills for the Building, and any society or local-body charges that fall on an occupier.
5.4 The Operator keeps the Building clean and in good condition and carries out day-to-day repairs. The Lessor carries out structural and major repairs. The Operator makes no structural change without the Lessor’s written consent.
5.5 The Operator may not sub-let or transfer the Building or any part of it, except by taking in guests as this Lease allows.

Questions about this document

Does the PG Operator Lease need stamp paper or stamp duty in Punjab and Chandigarh?

A lease of a year or more carries stamp duty on a scale that rises with the term, and the two jurisdictions differ.

See the full position on stamp duty, registration and witnesses

Does the PG Operator Lease need registration in Punjab and Chandigarh?

A lease for a term of more than one year must be registered (section 17(1)(d), Registration Act, 1908), and an unregistered one cannot be used to prove its terms (section 49).

See the full position on stamp duty, registration and witnesses

What does the PG Operator Lease cost on Kaagazaat?

Free, always.

Does the PG Operator Lease need witnesses?

See the full position on stamp duty, registration and witnesses

Often needed with this document

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