Tenancy Laws in Pakistan You Need to Be Aware Of in 2021

by | Mar 17, 2021 | Laws and Taxes, Real Estate Trends

Every day hundreds of thousands of people around Pakistan look for places to live on rent. Since there are so many people who opt to live on rent instead of buying their own place, federal bodies have put into place several tenancy laws in Pakistan to make ensure tenants fair treatment.

Do you think it’s a better idea to rent or to buy? Check out our blog: Real Estate Decisions: Renting Vs Buying.

To give you a brief overview before we dive into the nitty-gritty, tenancy laws in Pakistan differ according to different provinces. Right now, there are more than 5 tenancy laws in Pakistan. We will refer to only a few in this article.

  •  Islamabad Rent Restriction Ordinance 2001
  • The NWFP Urban Rent Restriction Ordinance 1959
  • Sindh Rented Premises Ordinance 1979
  • Punjab Rented Premises Act 2009
  • Cantonment Rent Restriction Act 1963

Rent Agreement

Rent-Agreement

According to the official tenancy laws in Pakistan, a proper written rent agreement is a legal requirement in all four provinces. Moreover, it must be noted that under section 17 of the Registration Act of 1908, even if a rental agreement is applicable for more than one annum, it becomes invalid if paperwork is not revised.

Here are a few things to keep in mind if you’re thinking of drafting up a rental agreement:

  •  You must put down the complete contact information of both tenant and landlord,
  • Tips of assumptions,
  • What the stage of the tenancy is,
  • According to tenancy laws in Pakistan, you must explicitly mention the due date as well as the style of lease payment that’s being opted,
  • Bank account information if the mode of payment is via bank transfers.

Evictions Under Tenancy Laws in Pakistan

Evictions-Under

Eviction laws are probably the most important ones to be mindful of as a tenant. You don’t want the landlord breaking their side of this agreement since it could mean becoming homeless overnight. That being said, below are some charters under the tenancy laws in Pakistan regarding eviction.

Your landlord could ask you to leave if:

  • Your rental agreement has expired
  • You failed to pay the rent,
  • You have violated any of the clauses mentioned in the rental agreement
  • You partook in actions that would lead to the devaluation of your property
  • You have sublet the house without the knowledge of the landlord.

Typically, you will be given a period of 4 weeks before being removed from the premises. On the flip side, the Pakistan Property Landlord and Tenant Law don’t propose that the tenant produce an application before leaving.  

Fair Rent

Fair-Rent

Under the tenancy laws in Pakistan, fair rent refers to a reasonable sum that is assigned to private property, by a rent officer. This is fixed keeping in mind the size, condition, and usefulness of the property.

In regions such as Sindh, Balochistan, KPK, and Islamabad Capital Territory, the Controller can decide the amount of fair rent on the rental application. However, Punjab Rented Premises Act 2009 does not define any method of deciding what fair rent is.

Under tenancy laws in Pakistan, rent in Islamabad cannot be bumped up for 3 years after the rental agreement unless the landlord decides to make improvements on the property. In Sindh, this amount cannot be increased by more than 10% each year. In KPK, the same laws apply as in Islamabad.

Rights You Have As a Tenant

Rights-You-Have-As-a-Tent

As per sources as Makeen Marketing, renters have quite a few rights under the tenancy laws in Pakistan. If you’re thinking of moving into a living space on rent, you might want to keep some of these in mind. Check them out below!

  • The right to ask the landlord for repairs necessary to preserve the house. As a tenant, you have all rights reserved to ask your landlord to repair everything that is necessary to keep your home functional. The landlord is liable to fix any deprecation that is incurred from the daily use of your home’s amenities.
  • Tenancy laws in Pakistan state that you have the right to ask for your security deposit back— given that no damages have been incurred on your part. If the landlord doesn’t abide by this, the tenant can file a civil lawsuit before the court.
  • The right of preferential acquisition of the property. What this essentially means is that you will get your first preference in case your landlord decides to sell their property. It only makes sense since you are already residing in the home.

Like this blog? There’s plenty more where that came from. Simply click here to view all of Makeen Marketing’s blogs. We cover a range of topics from the best real estate solutions in Pakistan to tourism and real estate trends.

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