The headline numbers
Across Whitefield, Electronic City, and Indiranagar in 2025-26, PG hostels typically deliver gross yields of 7-10%, while residential apartments deliver 3-5%. But yield is only half the story — PGs carry much higher operating costs and management effort.
Gross yield vs net yield
The gap narrows once you subtract costs. For a PG:
Why apartments keep more of the gross
For an apartment, the only real recurring cost is maintenance (₹2,000-5,000/month) and occasional repairs, so the gap between gross and net is small. That is why net yields for apartments and PGs end up much closer than the headline gross numbers imply.
Vacancy risk behaves differently
Apartments carry long vacancy risk — a flat can sit empty for 2-3 months between tenants. PGs have near-zero vacancy because demand is high and beds fill quickly, but they have per-bed turnover: one bed empty for two weeks still costs you that bed's rent.
Management overhead is the hidden cost
Apartments are "set and forget": one tenant, one lease, one payment a month. PGs are a business: daily meals, housekeeping, new check-ins, deposits for each occupant, and multi-bed rent collection. If you are an NRI or a busy professional, the apartment wins on effort alone.
Which one should you choose?
Choose a PG if you live near the property, enjoy running it, and want higher cash flow with higher effort. Choose an apartment if you want passive income and are willing to accept lower yield for lower risk. Many landlords do both — an apartment for stability and a PG for cash flow.
How TenantsFlo handles both
TenantsFlo supports both models in one account: apartment-style unit tracking and dedicated PG & hostel management with bed-level tracking, per-bed rent, and security deposit management. The same dashboard reports on both so you can compare returns across your entire portfolio.