Renting a Flat or PG in a New City: A Fresher's Checklist

Last updated: 12 October 2026 · By the Asuraa Team

Quick answer: Freshers usually pick a PG for a quick, furnished start, a shared flat to split costs, or a solo flat for privacy. Before paying, see the place, sign a written agreement, get receipts for deposit and rent, and complete police verification where required. For FY 2026-27, HRA exemption needs rent proof and the landlord's PAN if rent exceeds Rs 1 lakh a year, in the old regime only. This is general information, not financial advice.

Key takeaways

• A PG suits a quick, furnished start with meals; a shared flat splits costs; a solo flat gives privacy but needs a bigger deposit and setup spend.
• Always sign a written rent agreement listing rent, deposit, notice period, lock-in, maintenance and the condition of the house before you pay.
• Agreements over one year must be registered under the Registration Act, which is why 11-month agreements are common; some states have stricter rules.
• Claiming HRA needs rent receipts and an agreement, the landlord's PAN if rent exceeds Rs 1 lakh a year, and the old tax regime for FY 2026-27.
• Never pay a token amount or deposit for a place you have not seen, to an owner you have not met, or through a link that pressures you to pay now.

This is general information, not financial or legal advice. Rules on tenancy, stamp duty and police verification vary by state and city.

PG vs shared flat vs solo flat

Many freshers start in a PG for the first month or two near the office, then move to a shared flat once they know the city. If you are moving for a new job, our guide on relocating to a new city covers the wider move.

Before you pay anything: a checklist

1. Visit in person or have someone you trust visit. Check water supply, power backup, mobile signal, ventilation and safety at night.
2. Meet the owner or the PG operator and check that they actually control the property.
3. Read the house rules: guests, timings, cooking, pets, parking.
4. Ask about all costs: rent, maintenance, electricity (meter or fixed), water, internet, cleaning, food.
5. Check commute time at office hours, not on a Sunday.
6. Photograph the property with date stamps before moving in, especially existing damage.
7. Pay through bank transfer or UPI to the owner's account and keep receipts.

Rent agreement basics

Ask for a written agreement even for a PG. It should list:

• Names and addresses of landlord and tenant(s)
• Property address and what is included (furniture, appliances)
• Monthly rent, due date and mode of payment
• Security deposit amount and refund terms, including deductions allowed
• Lock-in period and notice period for both sides
• Maintenance and repair responsibilities
• Rent increase terms at renewal

Under Section 17 of the Registration Act, 1908, leases for more than one year must be registered, which is why many agreements are made for 11 months. Stamp duty and registration rules differ by state. In Maharashtra, for example, Section 55 of the Maharashtra Rent Control Act, 1999 requires leave and licence agreements to be in writing and registered. Ask the landlord which process applies and keep a signed copy.

Security deposit

Deposits vary widely by city and by type of housing, and in some cities they are much higher than in others. The central government's Model Tenancy Act, 2021 suggests a cap of two months' rent for residential premises, but it is a model law: it applies only where a state has adopted it, so local practice may differ.

Protect your deposit:

• Get a written receipt or pay by bank transfer.
• Record the property's condition at move-in.
• Note the refund timeline and allowed deductions in the agreement.
• Give notice in writing when you leave and do a joint inspection.

Tenant police verification

Many city police forces ask landlords to submit tenant details for verification, and some states make it mandatory. Delhi Police, for example, offers online tenant verification. Usually the landlord submits the form with your photo ID and address proof. Ask your landlord or PG operator whether verification has been done, and keep a copy of the acknowledgement.

HRA and rent receipts (FY 2026-27)

If your salary includes House Rent Allowance, you can claim an HRA exemption only under the old tax regime; it is not available in the new (default) regime. For FY 2026-27, the exemption is the lowest of actual HRA, rent paid minus 10% of salary, and 50% of salary in Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad (40% elsewhere). The Income-tax Rules, 2026 added Bengaluru, Hyderabad, Pune and Ahmedabad to the 50% list from 1 April 2026.

What employers usually ask for:

• Monthly rent receipts with landlord name, address, amount, period and signature
• A copy of the rent agreement
• The landlord's PAN if annual rent exceeds Rs 1 lakh
• Bank proof of rent payments, where possible

The new rules also require disclosure of your relationship with the landlord when claiming. A simple receipt template:

Received Rs [amount] from [tenant name] as rent for [property address] for the month of [month, year]. Paid by [UPI/bank transfer, reference]. Landlord: [name], PAN: [PAN if required]. Signature: [ ]. Date: [ ]

See our Form 16 guide for where HRA appears.

Broker and online listing scams

Watch for these red flags:

• "Owner" is abroad or in the army and asks for a deposit before showing the flat
• Pressure to pay a token amount immediately to "block" the room
• Payment requested to a personal wallet different from the owner's name
• Photos that look like stock images or appear on other listings
• Requests for OTPs, card details or screen-sharing

Pay brokerage only after you have seen the property and agreed on terms, and get a receipt. The same caution applies as with fake HR calls and emails.

Moving for a verified job

If you are relocating for work, make sure the job is real before you sign a lease. Every company on asuraa.in is verified before a fresher job is posted, and apply links are checked every morning. Keep your joining documents ready, including your new address proof.

Frequently asked questions

Is a PG or a flat better for freshers?

It depends on budget, privacy and how long you will stay. A PG is quicker and cheaper to set up; a shared flat splits costs; a solo flat gives privacy but needs a larger deposit and setup.

Why are rent agreements made for 11 months?

Under the Registration Act, 1908, leases for more than one year must be registered. An 11-month term avoids compulsory registration in many states, though some states, such as Maharashtra, require registration of all leave and licence agreements.

Can I claim HRA in the new tax regime?

No. For FY 2026-27, HRA exemption is available only under the old regime. You need rent receipts, an agreement, and the landlord's PAN if annual rent exceeds Rs 1 lakh.

How much security deposit is normal?

It varies widely by city and housing type. The Model Tenancy Act, 2021 suggests a two-month cap for homes, but it applies only where a state has adopted it.

Is tenant police verification compulsory?

It depends on your state and city. Many police forces ask landlords to verify tenants and some states make it mandatory. This is general information, not legal or financial advice.