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Rental Agreement in Pakistan

rental agreement in pakistan

What is a rental agreement? A rental agreement in Pakistan is a legal documentation between the landlord and tenants. This agreement describes the terms and conditions, including the important details like security deposit, payment schedule, and rent amount. 

The rental agreements offer lawful safety to both parties because renting a property is the ultimate choice for landlords and tenants. The landlords can earn the money while tenants can get an elegant place for residency. 

Rent Agreement Law in Pakistan


A rent agreement outlines the rights and liabilities of tenants and landlords. It is a contract between both parties with the inclusion of responsibilities and rights with the signature of the landlord and tenant. 

You must consider the following points when you are signing a rental agreement.

  • Understand Terms & Conditions of Rental Agreement: You must understand the terms of the property rental agreement, including the maintenance responsibilities, total security amount deposit, rental amount, and time period of the lease.
  • Inspect the Condition of Property: You must check the condition of the property, like defects and damages, before closing the rental agreement. 
  • Responsibilities & Rights: You need to know about your responsibilities and rights being a tenant. You need to keep the property in an elegant condition with the proper use of it.
  • Verification of Landlord’s Record: You must verify the landlord’s records, like the identity and ownership of the property, to avoid scams.
  • Everything must be in Writing Format: You must ensure that everything, including verbal agreement, is in written form to avoid disputes in the future.
  • Legal Advice: You must get legal advice from a qualified property lawyer about the property rental agreement in Pakistan. 
rent agreement law in pakistan

Commercial Property Rental Agreement in Pakistan


This rental agreement for commercial property outlines the terms and conditions for renting of a property like a warehouse, office, or store. The Contract Act 1872 and Transfer of Property Act 1882 govern the agreements for the rented commercial properties. 

The commercial rental agreement must consist of the information below.

  1. The details of landlord and tenant, like names and addresses 
  2. The total time period of the rental agreement 
  3. The total amount for the security deposit
  4. The rental payment and schedule 
  5. The purpose of renting property 
  6. Defined terms and conditions for the rental agreement
  7. Both parties sign on stamp paper of rental lease agreement in Pakistan
  8. The payable stamp duty varies in accordance with the duration of the lease and the rental amount

Rent Agreement Stamp Paper in Pakistan


The stamp paper is necessary for a rental agreement that can be bought from a stamp bank or vendor. The stamp duty always varies due to the lease duration and rental payment. 

The following details must be added to the rental agreement. 

  • The details of the landlord and tenant
  • Payment schedule with monthly or yearly rental amount 
  • The security deposit for the property
  • Purpose of using land 
  • Policy for the rental agreement
  • Responsibilities and rights of tenants and landlords

There are 500 rupees payable stamp duty for a property with a rent of 100,000 yearly. The stamp duty will be 1,000 rupees for a yearly rent of 100,0000-500,000. Moreover, the stamp duty is 2,000 rupees for an annual rental of more than 500,000.

Rent Agreement Format in Pakistan


The format of rental agreement in Pakistan has a specific format that must have important details.

  • The rental amount must be paid monthly or quarterly 
  • A tenancy rent agreement offers a Notice period for moving out
  • Responsibility for the different expenses like utilities, maintenance, and repairs 
  • Allowance of pets
  • Approval for guests’ visit
  • Terms and conditions for smoking and subletting 
  • Policy for the penalty on violation of agreement 
  • Terms and conditions for early exit before the expiry date of the lease

House Rent Agreement Format in Pakistan


A house rental agreement in Pakistan is the documentation for describing the rental policy. The rental contract must be in your language. You need to write the rental agreement by using the available template. The following information must be added to the agreement.

  • Entire contact details of the tenant and landlord
  • The yearly or monthly rent amount 
  • The due date for paying rent
  • Security deposit with terms and conditions
  • Policy for terminating the rental agreement
  • Defined responsibilities of the landlord and tenant for the repairs and maintenance of rented property
  • The presence of two witnesses during the signing process of the rental agreement

Final Thoughts


It is crucial for you to know the verification of property ownership, responsibilities and rights, property conditions, and terms of agreement before signing the rental agreement in Pakistan.

You can get consultancy from Makaan Solutions for renting properties in housing societies like Capital Smart City, Bahria Town Islamabad, DHA Islamabad, and Park View City Islamabad.

Rental Agreement in Pakistan

If you want to know about Rental Agreement in Pakistan, contact Makaan Solutions. Our Sales Executive Officer will provide you with all the latest information. Starting from consultation to choosing the property, and from booking to owning your dream property. For further details, please do not hesitate to contact on the below-given information:

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