Hit by the pandemic, PGs look for a turnaround

By Aswin Devan | NT

“I have sold all my jewellery to start this paying guest accommodation, but Covid-19 has shattered my dreams. I closed down the facility for two years. I have reopened it now, but the number of inmates is very low. I hope the IT companies will open their campuses soon,” says Asha, who runs Asha’s PG in Madiwala.

Asha launched the paying guest accommodation, popularly known by the acronym PG, on February 18, 2020. A month later, the nation went into lockdown. Inmates went home and it forced her to close the facility.

This is not just the case of Asha. The pandemic has forced more than 10,000 PG owners in the city to shut business. All of them are now waiting for the IT companies to open up so that they could at least compensate for the huge losses.

PGs in the city have been providing reasonable accommodation for students and employees from different parts of the country.

The availability of various facilities, such as food, wi-fi, and other common leisures within a reasonable finance plan makes PGs the much-sought after destinations.

‘Acha din aayega’
Noor Muhammad was into paddy cultivation at his home twon in Andhra Pradesh before he came to the city 18 years ago. He started with a small shop in the city. Later, he used all his earnings to buy Sri Sai Venkat PG in Nadiadwala six years ago. It is a 30-room facility, but only six rooms are occupied now. He is not making any profits now, but the rent will help him maintain the facility. However, Noor is optimistic. He hopes those who left the city will come back and his business will flourish soon. “Acha din aayega (Good days will come),” he said.

Most of the PG facilities are operating on rented buildings and they offer single and shared accommodation - two persons in a room, three in a room or even five in a room. The rent comes down when the number of occupants in a room increases. The tariff may vary depending upon the food they serve. PG owners say that they will be forced to increase tariffs with the prices of vegetables and essential goods going up. “With the price of vegetables and groceries escalating, it is difficult to provide three-time meals with less number of occupants,” says Ranjith, who helps his parents to run a PG.

Rajesh, manager of the Megana PG for men at Koramangala, says he has not seen a worse time like in his seven years experience. “Covid hit the business hard. From the 25% capacity during Covid to 75% capacity right now is not that commendable, because we are not getting enough returns to our investment,” he said. Dwindling profits Prior to Covid, each PG used to make a minimum profit of close to Rs 1.25 lakh. Owners say the profit has come down to Rs 60,000. This is very low as they have to spend a minimum of Rs 30 lakh to set up a PG. With the fear of a fourth wave of Covid looming large, most of the IT companies in the city may delay opening their doors.

This has put a question mark on the survival of PGs. Companies which are functioning with limited staff strength have asked employees to switch to the online mode.

That is why Deloitte employee, Vijaishankar from Erode, is planning to vacate his room at a PG in Shivajinagar. “Why should I pay the rent when I can work from home?” he asked.

Despite the setbacks, the owners remain hopeful that the situation will improve very soon.

At the Niranjan Shethriowned Srinivasa men’s HiTech PG in Shivaji Nagar, 100 out of the 180 rooms are occupied. “We pin our hopes on the opening up of the market,” Shethri said.