The residents living in PG hosts’ paying guest accommodation throughout Bengaluru could now likely soon find themselves in a financial squeeze again because PG owners are said to be pricing up its rents 5% to 10% after LPG cost in commercial cylinders jumped, reports state.
The abrupt raise in commercial gas cylinder rates has alarmed many PG providers across the city, with PG operators saying they’d already found managing day-to-day operations to be proving an eternity, as food, maintenance, power and staffing costs continue to increase.
Now, with added pressure from the most recent LPG price increase adding more pressure, PG associations are now looking to shift part of the burden to residents. The cost of commercial LPG cylinders has surged, with some PG owners reporting an estimated effective cost impact of nearly ₹993 per cylinder in Bengaluru.
We predict that the hike will lead to considerable impacts on PG accommodation food prep rates, particularly in accommodation containing large student and employed populations. Increasing operational expenses have already put pressure on many PG operators to keep food quality and even regular menu services afloat.
Some admitted that menu items have been scaled back or adapted in recent months to keep costs down. Owners argue that despite such adjustments, they found it difficult to keep rent affordable. “Even before this hike, getting gas cylinders on time and budgeting for food was getting harder. We’re somehow all adapting on slim margins.
Now the latest commercial cylinder price increase is another big shock in the mix," said several PG owners, according to the report. The Bengaluru PG Association also warned that a rent hike of approximately 5% over the next few weeks can be unavoidable.
Among premium facilities belonging to certain key IT corridors and central Bengaluru, some premium PG facilities may also get a raise of up to 10% depending on scale and operation costs. Because of Bengaluru’s strong demand for housing, thousands of students, fresh graduates, and IT staff depending on PG accommodations will be affected by the increased rent.
The possible rent hike will be taken up by all sorts of high-tech industries. Thereby, it is a threat that the residents are already grumbling about the rising cost of living of urban people in the city in terms of higher food costs, transport fees, or utility bills. PG accommodation continues to be one of the cheapest housing options for many young professionals for job opportunities in Bengaluru, compared to the need to rent a place.
But repeatedly rising expenses are at work, as even shared accommodation now turns to something financially stressful for some of the residents. One PG tenant felt frustrated by the situation, saying they are being squeezed by inflation from all directions. In recent months, Bengaluru residents have already borne the cost of climbing hotel rooms, transportation services, food delivery and even essentials.
Commercial LPG price increases directly affect businesses that rely on large-scale cooking and food services, such as hotels, hostels, restaurants and PG lodgings, experts said. Since food is one of the main services of PG establishments, the owners of such systems usually are left with no choice but to cut services or raise rent.
At the same time, tenant groups have called on PG owners to advise tenants that such rises should not be sudden, but should focus in the slow way on what they will be told to do to keep tenants in the loop without striking an abrupt change in rent. And some residents also want more transparency around food quality and service standards in the event that rents are higher, if they do rise.
With high cost of living in Bengaluru yet to rise, this proposed PG rental up has not only demonstrated how the pressure on students and working professionals as well as students is starting to grow higher in India’s technology capital to cope with higher costs. If the changes enacted to PGs are put into effect, residents of the city across PGs are likely to find themselves paying much, much more per month soon. This will bring another layer of difficulty onto a Bengaluru urban lifestyle already in steep financial difficulties.
