The property sector of Pakistan has attracted many people to invest and earn. Although, the preferred property type varies from person to person we have seen that renting any particular property to the people of the same taste is a strenuous process.
The legal regulations during this process and weak provisions in the agreement could lead you towards a difficult destination.
In Pakistan, the landlord-tenant relationship has always been a hot issue as we come across a lot of incidents in our localities.
For landlords, it is difficult for them to find a tenant who would consider it as his own home while at the same time, it is a hectic job for tenants to find a friendly landlord.
The government of Pakistan has introduced a legal way to get rid of any confrontation that may arise at any stage. A tenancy agreement has been put in place to ease the relationship between landlord and tenant that ensures the safety of one’s property while giving some rights and duties to both landlord and tenant.
Often a times, a tenancy agreement is usually known as rent agreement whose format and depends largely on the dealing between two parties.
In other words, the contents, rules and regulations regarding rent increase, expiry date, due date of rent, maintenance charges and everything else depends on how they have decided between each other (in compliance with constitution), while putting it on a stamp paper makes it legally binding.
If we chalk it out in simple words, it is an agreement that defines relationship between landlord and tenant to avoid any disputes that may arise in future.
The law always protect all the parties involved in any agreement by setting some rules, rights and duties according to the nature of agreement.
In the same case, it is necessary for a landlord to get this document registered with local registrar and also to submit a copy at relevant police station.
Utility of Rent Agreement
Rent agreement is actually a roadmap that defines under which obligations tenant is allowed to occupy any particular building while also helps build a better relationship.
In case of any dispute, that usually erupts over rent increase, damaging the structure or strictness in rental due date, the agreement would serve as a lens to settle the dispute in a more legal way to safeguard the rights and duties of both parties.
It is always advised from ProProperty to read the elements of deed carefully and negotiate over things that are deemed necessary.
Under the law of Pakistan, there is no fixed time duration for this agreement and it depends upon the parties to decide the time frame but in compliance with Registration Act 1908.
Things to include in tenancy agreement
- Details of identification of both the parties (The landlord and Tenant),
- Details about the facility (Location and area),Monthly mode of payment (Cash/Cheque/Bank transfer/Draft),
- Due date of monthly rent,
- Period for which the agreement would be valid,
- Percentage of annual rent increase,
- Advance rent payment and security charges, if applicable,
- Receipt submission of monthly rent,
- Maintenance charges in case of misuse,
- Time slot before vacating the premise.
Since the aforementioned postulates need to be mentioned while drafting the agreement, they are also bound to the level of understanding and cooperation between the parties.
The agreement is an important document due to various reasons that come in play and lead to serious disputes between landlord and tenant.
To further understand the importance of rent deed, following are the most common issues that people usually face in our localities.
- Unjust and sudden rent increase,
- Undefined major and minors maintenance charges and responsibilities,
- Frequent visits of premise that compromises the privacy,
- Complaints by the neighbors,
- Nuisance and disturbance created by bachelor tenants,
- Late submission of monthly rent,
- Multiple families living in a facility than decided in the agreement,
- Non-compliance of tenant for vacating the premise after lease period expiration,
- Landlord not paying governmental duties and taxes, creating issues for tenant,
- Compromising security of the house, CCTV’s or robberies,
- Illegal activities carried out by tenants, against the social norms and law.
Obligations of a Landlord
According to the section 12 of the Rent law;
- Landlord should repair the property which he is going to rent out so it should be in good condition,
- He is not allowed to cut the electricity or water supply from the premises,
- He has to clear all the utility dues,
- He is never allowed to enter the premises without notice.
Obligations of a Tenant
According to the section 13 of the rent law;
- It is necessary for the tenant to keep the premises as it was rented out to him,
- It is must that he uses the property for the purpose for which it was rented out,
- He has to allow the landlord into the premises for inspection and repairs,
- He is bound to return the possession on the ending date as in the agreement,
- Tenants should restrain themselves for making trouble in the neighborhood,
- The property must not be changed structurally without the approval of the landlord,
- Rent must be paid on the due date as is mentioned on the agreement.
The friction could arise between tenant and landlord on any reason, these chalked out issues give a clue on how number of issues entangle with each other, taking the parties to courts.
To avoid such untoward incidents from happening, the importance of rent agreement increases.
It is arguably safe to claim that rent deed documents make your journey hassle free and saves you from many legal complications.
Over the time, we have seen that the rent agreement has minimized number of cases in courts, since it has become fairly easy for people to negotiate their disputes at home, in light of the agreement they agreed upon.
From the platform of ProProperty, Punjab Rented premises Act (PRPA) 2009, Rent Control Act, Rent increment policy, Act of renting property are some useful documents that could be accessed from here to make use while drafting your deed.
Furthermore, ProProperty also provides a platform to seek updated information and guidance related to real estate developments in the country.
