Hostel PG Business,How to Start? Espenses,License - Setup Guide

Updated On : 15-Jul-2024

In today's era, education and its job have become an important part of life, there is hardly any family whose children are not engaged in the exercise of making their future by staying away from home, often these children are given hostels or PG for their living. There is  a constant demand for hostels and PGs, there are many people who have made hostels and PGs their full time business, if you have any idea of ​​adopting hostel or PG as a business. If so, then definitely read this article of ours, we will tell here how you can get good income by starting hostel or PG business.

What is Hostel or PG

Before starting any business, it is important to know and understand about it, PG or hostel is the place where the students studying get the best and collective facilities to stay and eat within their budget. There is a big difference between hostel and PG

Hostel is opened in a large area, where room and food are arranged for several students at the same time, whereas the area of ​​PG i.e. paying guest is limited. Here people live in a family or group only in a house, the number of people living here is limited . Another big difference between hostel and PG is that only students studying in hostels get a place, whereas for doing jobs in PG. people who live

Types of Hostels

Generally there are three types of hostels, one boys hostel, where only boys stay, second girls hostel, only girls stay here and third is mixed hostel mixed hostel houses both boys and girls, in which both the hostels are two on the same campus. operate in different buildings

While opening a hostel or PG, you have to make sure that the campus where you are going to start it, how many rooms are there, what is their size, how many people can stay in it, you also have to calculate according to the rules that Your invested cost amount is also gone and the profit keeps on increasing

Location selection required for Hostel PG Business

As we have already told you that only students get space in the hostel, so before starting the hostel business, it is necessary to choose the right place. Students like to stay in such hostels which are their college, university, coaching or institute. So it is better to start hostels around such institutions.

Whereas most of the jobseekers stay in PG, so for this, you should choose a place from where it is easy to go somewhere. Especially keep in mind that autos, buses etc. are available from around the PG itself.

Hostel and PG business expenses

The first requirement in starting any hostel or PG is building Now it is the turn of the beds, the double bed or triple bed is adjusted according to the length and width of the room. Have to have single room too

You will have to buy a big clean kitchen and utensils in sufficient quantity to eat and drink, in all these you will invest a lot of money, but it will keep giving you profits for a long time, try to buy only good quality items.

Whereas for PG you have to organize the rooms. The residents of PG often demand attached and separate bathrooms, you have to keep in mind that the PG residents want a peaceful environment, you have to pay special attention to it.

Setup for hostel

For a complete and luxurious hostel, you have to divide the campus into several areas like living, food, kitchen, bathroom, reception area and play ground. If space is available, library can also be arranged.

Facilities provided to customers

Students are the customers for the hostel and you have to give special attention and convenience for the hostel shop to attract more and more customers towards your shop.

Keeping in view the need and privacy of the students, you have to allot rooms and beds for them. There are also big halls, so you can also put double decker beds there.

Lockers: In
hostels, students often keep their belongings scattered here and there, in such a situation, the room looks dirty, along with it everyone has their own important belongings and papers, which are in danger of getting lost by keeping them here and there, for this every student It is necessary to have a locker of its own, in which they can keep all their belongings safe by law. Keep two keys of these lockers. In case the key is lost with one student and the other with the hostel management, another key comes in handy.


Food is the most important thing after staying in the hostel, students do not have enough time to prepare food for themselves after studying, for this you need staff, the food should be simple but tasty, to give delicious and home-like food. But only students will stay here, otherwise they can move to other hostels, change the food menu every day and give food to the students, although there are many hostels where students have to cook their own food but the choice of students is the same hostel. There are places where food facilities are also available along with lodging.


Internet is the need of changing times, if senior level students live in your hostel, then they also have to keep laptop with them, you can provide them free internet facility through Wi-Fi, in today's date Wi-Fi facility is very much. It is no longer expensive, the more facilities you provide to the students in the business of hostel or PG, the faster your business will grow, the more your business goes, the more money you will earn

Market research is essential

A lot of money is invested in opening a hostel or PG, so before starting it, you must do market research once, you have to do a complete study of the area where you are going to start this business, the surroundings there. How many colleges, coaching, universities etc. are there, you also have to pay attention to how many hostels and PGs are already running there, what are the facilities in all of them and how much are their fees. Along with this, it will also have to be kept in mind that how far is the main market and road from your hostel.

Importance of advertising

If you have started a new hostel or PG, then you will have to advertise it. For advertising, you have to fix a separate budget, advertising is also an important part of your business in the initial phase, you can get banners or posters installed outside the schools, universities, colleges and coaching institutes of the area, you can get pamphlets distributed in the beginning. It has to be done, later the students and parents themselves come to you by walking, social media is also very important in today's era, if you want, you can also make a Facebook page in the name of your hostel, etc., it gets more publicity in less money.

Manpower requirement

Hostel or PG business is something outside the bus of a single man. For this additional human resources are required. Security guard, receptionist, one cook, one helper, two sweepers, one peon and one care taker have to be appointed. If you are lucky, you can get hardworking employees who can help your business. can reach high

Pay attention to documents

If the student or person you are keeping in your hostel or PG, check all the documents thoroughly, try to contact their parents or even get them verified. This is very important from the point of view of security. Do not ignore this fact even by mistake. God forbid, if any incident happens then you will also get stuck in unhappiness, so do not hesitate in paperwork

Before giving room to anyone in your PG or hostel, take his identity card, Aadhar, photo etc. and make a separate file for it, you will be facilitated by having complete information of all the occupants in one file.

Room acquisition and vacating process

Before giving a room to any new person, take one month's rent in advance as security, this will ensure that if that person is not able to pay the rent on time due to any reason, then he should recover the rent from the money received in advance.

If you want someone to vacate your room, then issue a notice to him a month in advance. Give strict instructions to this rule, so that you will not have to wait for anyone to keep you in the room.

If you are serious about your hostel or PG business and want to pursue it, then you have to visit your hostel regularly, listen to the problems and problems of the residents there and solve it as soon as possible, this will build your credibility. And your Hostel and PG business will continue to grow towards success

License and Registration

It is seen in many places that people invest lakhs of rupees and open hostels and PGs but do not take license and permission for that. Conscious parents or students do not like to stay in such hostels, so it is better that you get your hostel and PG registered by following all the legal procedures.

Trade License:
Trade license is the document which is issued by the government. This license means that the government is giving you permission to continue your business.

FSSAI: Whether
you are providing better food, etc. to the occupants of your hostel or not! How is the quality of the food prepared in your hostel, for this license has to be obtained by applying FSSAI, this license is issued to you after investigation by the local food safety agencies.

NOC means No Objection Certificate. NOC is a document issued by the municipal bodies, in this you have to inform the local police station about the information of your business and all the information about its boundary and premises, by simple investigation by the police department and matching the information given by you. NOC is handed over

In this article, we have made you aware of all the facts related to starting hostel and PG business, we hope that you will like it very much and will prove beneficial for you.

Learn how to start Hostel PG Business in your place.Hostel and PG business investment,basic documents,NOC & earnings details.

Related Posts