Commonly Asked Questions Regarding Pakistan's Landlord-Tenant Law

Renting a house in Pakistan can be a nightmare if adequate attention is not paid to the requirements throughout the procedure. An excellent place to start for potential tenants is to spend some time learning about landlord-tenant law in Pakistan. It is critical to do so because, as difficult as it is to find a reasonable property that meets all of your requirements, the good fortune of finding a friendly landlord who isn't intrusive, and charges of affordable rent can all go down the drain in seconds if the agreement is not properly recorded in black and white.

So, in order to assist both current and potential tenants/landlords, here is all you should know about landlord-tenant law, as well as several FAQs. We had previously covered several crucial aspects of the rental agreement, and we concluded that there is an unavoidable need for a concise guide on lease agreements in Pakistan. So, if you haven't yet formalized your renting arrangements, you can benefit from our research.

ALL YOU NEED TO KNOW ABOUT PAKISTAN'S LANDLORD-TENANT LAW In general, landlords and tenants have some legal rights and are both answerable to the state government. You must follow certain terms and conditions whether you are a homeowner or a renter. Here are some questions and answers to assist you understand the requirements before renting a home in Pakistan:

QUESTION: WHAT IS A TENANCY AGREEMENT AND HOW DOES IT WORK? A tenancy agreement, as defined by landlord-tenant law in Pakistan, is a written contract between two parties (landlord and tenant) that allows one party to use another party's property for a predetermined and agreed-upon fee. A tenancy agreement, commonly known as a rent agreement in Pakistan, has no set format. The landlord and tenant have complete control over the contract's contents, terms and conditions, and other regulations, with the only requirement that they comply with state law or laws. The legislation in Pakistan regarding tenancy agreements further says that the landlord is solely responsible for the legal registration of the contract before the Rent Registrar. If a landlord fails to do so, their appeal for any issue with the tenant would be denied unless they pay a fee (10% of the annual rent, according to the Punjab Rented Premises Act). The fine must be paid to the government. If tenants desire to launch a case, they must additionally pay a fine (5% of the annual rent, according to the Punjab Rented Premises Act).

WHAT EXACTLY IS THE RENT CONTROL ACT? The Rent Control Act is a colloquial term for the set of legislation in Pakistan governing rent/tenancy leases, tenancy agreements, rental agreements, and rent contracts.

QUESTION: WHO IS RESPONSIBLE FOR PAYING PROPERTY TAXES? According to Pakistani law, lawful homeowners are required to pay any taxes or levies levied against rented property. However, in some situations, the law allows tenants to pay the expenses but subsequently request a refund.

WHEN DOES A LANDLORD HAVE THE RIGHT TO EVICT A TENANT? According to Pakistani landlord-tenant law, a landlord has the authority to terminate a tenancy arrangement if the renter seriously violates the lease agreement's terms and conditions. When a renter violates property law, the following broad criteria may apply:

Tenants are paying their rent after the due day. Keeping dogs when the agreement expressly prohibits it. Unwanted or illegal actions on the landlord's property. Significant property damage, particularly in circumstances where a property is damaged by natural disasters or other causes.default harm that has nothing to do with the renter.

Landlords are encouraged, however, to first write a notice stating the reason for the eviction as well as a fair timeline (the eviction time frame can also be a part of the leasing agreement). In such circumstances, landlords have the authority to decide on the severity of the infringement. However, homeowners can also warn tenants verbally and provide them with temporary relief for a few days in order to repair the damage, find another home for the pet, or pay the rent.

QUESTION: WHO DETERMINES RENT? According to Pakistan's Rent Control Act, a tenancy agreement is a mutual contract between the landlord and the tenant. However, there are a few elements to consider when determining a reasonable monthly rent, and the following criteria can help:

Rental trends for the same block and other residences in the area might be used as a guide. The rental value of an area/building as established by the Taxation Department's Property Tax Assessment Register. The monthly rent can also be determined by the property's condition and proximity to amenities.

QUESTION: WHAT IS PAKISTAN'S RENT INCREASE POLICY? The landlord-tenant law in Pakistan is totally based on justice and fair play, with no exceptions for any party. Each province and the federal capital have their own set of policies for renting out property. However, renting out a house in Pakistan's cantonment zones necessitates landlords/tenants following a completely separate set of rules. Landlords can increase the existing paying rent by up to 25% under the Rent Control Act in cantonment areas and the rent increment policy in provinces such as Punjab, KPK, and Balochistan. The rent increment policy also proposes that the rent be increased once the present agreement expires, which is usually months. However, Sindh's rent increment policy differs from that of the other provinces. The guideline states that if a fair value for rent is specified in the contract, there shall be no increase for three years. The landlord is only allowed to raise the rent by 10% of the current rate.

QUESTION: WHO IS IN CHARGE OF PROPERTY MAINTENANCE? According to Pakistani landlord-tenant law, property upkeep costs are not solely the landlord's duty. It adheres to a simple common sense guideline, so maintenance and repairs are divided into two parts: interiors and exteriors. For example, if the property suffers from natural damage, leakage, or seepage, the landlord will pay for the repairs. However, tenants are responsible for any damages caused by them, including interior paint and any other damages.

Does A TENANT HAVE THE RIGHT TO RENT THE  PROPERTY TO ANOTHER PERSON?

Subletting is the practice of renting out a property without the landlord's permission. Without the landlord's permission, a tenant has no authority to transfer the rental agreement or the rented property to another party. Even if the landlord nods in agreement, the situation should be formalized because verbal agreements are never accepted by the court.

Disclaimer: The main goal of the questions and answers presented above is to give a quick review of Pakistani landlord-tenant law so that people are aware of their obligations and legal rights. The data cannot be used in every situation and is not a replacement for legal counsel. To resolve any property dispute, we advise that you consult an expert and do extensive research.

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