Recently one of the Twitter handles shared that she wanted to be a Paying Guest Owner in Bangalore and earn a massive amount of money without doing anything. To be honest this is so true. In Bangalore PG business is one of the most profitable business. People who comes for their new job, or students looking for the Jon, or even the students who are studying take Paying Guest out here. They pay anywhere between 3K to 20K per month.
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Now the owner of these PG doesn't have to do much work. For them they can lease the building, set the PG, hire few caretakers and done. Now they have the business which William them handsomely. When I used to stay in a PG, I used to pay Rs 7K for 3 sharing. And the while building had 50 people staying. That means, the PG owner was getting around 3 Lakh 50 Thousand. Now if he gives 1.5 Lakh for cleaning, cooking and maid, he will have 2 Lakh per month.
Now since he has taken a lease, it will be around 50 Lakh initial. So overall in 2 years, he can earn back the lease amount. And then all the money is his to spend. I used to see my PG owner first 5 days of the month where he used to come for collecting the payment. That's it, he doesn't have to work much, easy money. And that'd why the PG is such a lucrative business. All you need to lease a building which is close to a tech park, or a colleage.
If you are giving food thats good, but some of the PGs doesn't have thar option. The food is not that great, but again people used to eat it. So the amount taken for food is also included in the rent. They used to take a security deposit of 2 months. Which is again an additional money for the PG owner which they can keep in FD and get the returns from there.
The PG owner where I used to stay, have 2 to 3 buildings and since it was near to a tech park, it was almost 80% occupied and thus the owner used to earn very handsomely.
Posted Using INLEO
