Many students and working professionals face problems when hostel or PG owners refuse to return their security deposits. Unfair deductions, endless delays, and lack of agreements make this a common issue. In this blog, we explain why this happens and share smart tips on how you can protect your money, avoid fraud, and choose safe, verified hostels through HoztelRooms.com

Why Hostel & PG Owners Don’t Return Security Deposits And How to Protect Yourself

Finding the right hostel or PG accommodation is already a challenge, but many students and professionals face a bigger problem when they leave – owners refusing to return the security deposit (caution money).

This is not only unfair but also illegal. In this article, we explain why hostel/PG owners often delay or refuse refunds and what you can do to protect your money.

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Why Hostel/PG Owners Refuse to Return Deposits

1. No Written Agreements – Many PGs avoid paperwork, giving owners freedom to manipulate terms.

2. Unfair Deductions – Charges like “painting,” “cleaning,” or “maintenance” are used as excuses.

3. Delaying Tactics – Endless excuses: “owner is away” or “accounts not cleared.”

4. High Demand – Owners know tenants keep coming, so reputation loss doesn’t affect them much.

5. Weak Regulations – Lack of strict oversight makes it easier to exploit tenants.

 

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Common Real-Life Experiences

• “I paid ₹15,000 as deposit in Bangalore. At exit, the owner deducted ₹10,000 claiming repair costs that never existed.”

• “My Gurgaon PG delayed refund for 5 months, and I lost the money when I had to move cities.”

Sadly, such cases are widespread in metro cities.

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How to Protect Yourself

✅ 1. Demand a Written Agreement

Ensure your contract clearly states:

• Deposit amount

• Refund timeline

• Deduction clauses

✅ 2. Always Pay Digitally

Use UPI/bank transfer instead of cash. Keep transaction proof.

✅ 3. Document Room Condition

Take pictures/videos on move-in and move-out days.

✅ 4. Follow Proper Notice Period

Avoid sudden exits; otherwise, owners cut money unfairly.

✅ 5. Collect No-Dues Certificate

Get a signed statement that rent and bills are cleared.

✅ 6. Use Trusted Platforms

Websites like HoztelRooms.com verify PGs/hostels and allow you to check reviews before booking.

✅ 7. Legal Options

If money is not refunded, you can send a legal notice or approach a consumer court. Even a notice often pressures owners to pay.

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Why Choose HoztelRooms.com?

At HoztelRooms.com, we ensure:

• ✅ Verified listings

• ✅ Honest tenant reviews

• ✅ Safer transactions

• ✅ Transparent hostels and PGs

This means peace of mind for students and professionals looking for safe accommodation.

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Conclusion

Not every hostel owner is unfair, but the issue of security deposit fraud is real. By being informed, keeping digital proof, and choosing verified options, you can protect your hard-earned money.