Tenancy Rights are the rights of a landlord and a tenant created through the tenancy (lease) agreement. According to the PSLM survey, an analysis of nationwide housing units shows that 86.6% of households have their own houses and 13.4% live in rented residential properties. Currently, Pakistan is facing a housing shortage of 10 million units which has increased the demand for apartments, high rise buildings, and rental properties. The rising inflation has made it extremely difficult for an average person to own a house. The demand for rental houses has increased over the years, giving tenants multiple options to choose from. Therefore, it is of paramount importance to know the tenancy rights in Pakistan before entering into such arrangement. This article by the Iqbal Institute of Policy Studies will discuss everything you need to know before renting a new home.
What are the basic standards you should expect when renting?
In Pakistan, tenancy is a provincial subject which means that all the provinces have a separate ‘rented premises’ law to regulate tenancy in each province. However, the basic standards one should expect before renting out a property are same across the provinces. Your landlord is bound to provide the rented property in a habitable condition, with all fixtures and fittings. However, the damages ensued by the tenants are to be repaired by the tenant. It is the duty of the landlord to ensure the electricity and gas supplies are safe to avoid any potential hazards. Moreover, it is the landlord’s obligation to pay taxes, levies or charge associated with the rented property. However, the payment of electricity, gas and water bills are regulated by the tenancy agreement and are usually the obligations of the tenant.
What do you need to know about the tenancy agreement?
Tenancy is regulated by the instrument of tenancy, the ‘Tenancy Agreement’, which must be registered with the Rent Registrar. Tenancy is a technical term, and the ‘payment of rent’ establishes the relationship of tenancy between the landlord and the tenant. This accrues certain rights and duties to both the landlord and the tenant. It is the duty of the landlord to provide you with a tenancy agreement before renting out the property. The agreement should be in writing because verbal tenancy agreements are void and unenforceable. Hence, you should always ask for a certified and registered Tenancy Agreement before entering into any tenancy arrangement for residential and commercial purposes.
What are the contents of the tenancy agreement?
You should always check for the following essential details in your tenancy agreement before signing:
- Basic details of landlord and tenant ((Name, CNIC, Residence etc.)
- Description of the rented premises
- Duration of tenancy
- Rate of rent
- Rate of rent enhancement
- Mode of payment and due date of payment of rent
- The amount of advance payment and security deposit (if any)
What are your rights in case the landlord increases your rent?
In Pakistan, as the tenancy is regulated by the provinces, the rate of rental increment is based on the laws of each province and the federal capital. The rental law is vast and follows different procedures as per the jurisdiction of a particular law. For example, cantonments, DHA and Bahria Town follow their own by-laws to regulate rental increments. You should check the by-laws of the particular area to learn about the rental increment policy of that area. The tenancy law as per the locality specify a particular percentage of rental increment annually. Therefore, the landlord cannot unilaterally increase your rent in violation of the applicable laws.
Can the landlord evict the tenant from the rented property?
The landlord cannot evict the tenant from the rented property without establishing the reasonable grounds for eviction. Moreover, the tenant must be given the notice period of at least 02 months or as mutually agreed in the tenancy agreement before eviction. You must be aware of the grounds of eviction before renting out a property. The grounds of eviction are the reasons under which the landlord can initiate eviction against the tenant.
What are the valid grounds for eviction?
The grounds for eviction as per the laws of Pakistan are enumerated below:
- expiration of the period of tenancy
- failure of payment of rent
- breach of tenancy agreement
- sub-letting without the permission of the landlord
- used the premises for a different purpose other than the purpose for which the property was rented out.
Can the landlord visit the rented property whenever he/she wants?
According to the laws, the landlord cannot ‘barge in’ the rented property as they may please. The landlord is only allowed to enter the property with your permission. In fact, the landlord is required by law to enter the premises for inspection and repair only if you allow them to enter. It is the obligation of the landlord to provide you with their authentic contact information for correspondence.
Can you sub-let the rented property?
Sub-letting is the act of renting out the property by the tenant to sub-tenants. According to the laws of Pakistan, sub-letting without the consent of the landlord is a strong ground for eviction. For instance, if you decide to sub-let a room of your house to another person to share expenses without the landlord’s consent, the landlord can give you the notice of eviction before the completion of tenancy period. Moreover, the sub-tenant does not have the same rights as the tenant who has signed the tenancy agreement. Even though sub-letting is a common and cost-effective way of disbursing the rent dues, however, you must be aware of the alteration in your rights as tenant and sub-tenant before making a decision of renting out a property.
Can the landlord unilaterally terminate the tenancy agreement?
Due to lack of awareness of tenancy laws, the tenants often fall prey to the misuse of landlord’s power. The question that troubles every tenant is the termination of tenancy agreement. Tenants should be aware that the landlord cannot unilaterally terminate the tenancy agreement before the completion of the duration of tenancy. For example, if your tenancy agreement stipulates 02 years as the duration of tenancy, then the agreement cannot be terminated before the said time period. However, the law gives a middle-ground to terminate the agreement before the agreed time period by the ‘mutual consent’ of both parties i.e., landlord and tenant, or by an order of the Rent Tribunal.
Conclusion
This article encompasses all the relevant details you need to know before renting out a property. Just be sure to check the details of the tenancy agreement to avoid any future mishaps. The period of tenancy, the amount of rent and the rate of rental increase can be negotiated in the tenancy agreement. Always sign the agreement after proper negotiations and deliberations. Moreover, it is the duty of the landlord to register the signed tenancy agreement with the rent registrar and provide the tenant with a certified copy of the registered agreement. Keep an extensive paper trail for the duration of tenancy. For instance, always keep a record of the rent payment receipts and the copy of the tenancy agreement as proof of tenancy. And remember, the landlord cannot evict you without giving you a notice period as stipulated in the tenancy agreement. If the notice period is not provided in the agreement, the law provides a notice period of 02 months before the eviction becomes legally effective.
Estimated reading time: 6 minutes
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