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Landlord tenant and rent agreement

Landlord tenant and rent agreement
Landlord

A person who rents out the home / property to other people is known as landlord.

Tenant

A person who occupies a house / property rented out by landlord is known as tenant.

Rent agreement

Rent agreement is a written agreement between landlord and tenant, which specifies the conditions to occupy, use and vacate the specific house or property. Duration of rent agreement in Pakistan is normally 12 months. Before moving in the house or property, tenant pays the 2 months’ rent as security and 1 month’s rent as advance payment. After 12 months, rent agreement is either renewed or tenant vacates the house or property. There is generally 10% annual increase in the rent amount if rent agreement is renewed.

Landlord’s duties and rights

Duties of landlord:

Landlord has to register the rent agreement with the nearby police station

Landlord has to make sure that property is properly maintained before occupied by tenant

Landlord pay’s the tenant for any repair they do

Landlord has to give at least 1 months’ notice to the tenant before eviction

Rights of landlord:

Landlord has the right to set the rent

Landlord has the right to collect rent on due date

Landlord has the right to be informed about repairs and damages to the property

Landlord has the right to charge the tenant of damages to property

Tenant’s duties and rights

Duties of tenants:

Tenant has to pay the rent on time

Tenant has to pay all extra charges mentioned in rent agreement like bills & society fees

Tenant has to keep the property in good condition

Tenant has to inform the owner if repairs are needed

Rights of tenants:

Tenant has the right to enjoy peaceful living

Tenant has the right to be asked before entering home

Tenant has the right to be paid for the repairs done on behalf of owner

Tenant can end rent agreement at 1 months’ notice

Tenant has the right to get a copy of rent agreement

Tenant can reclaim the deposit at the end of rent agreement

Tenancy disputes and solutions

There can be many disputes during the tenure of rent agreement. Disputes are like non-payment of rent, eviction and many more. To solve these issues both parties should first consult themselves. If problems exist, then both should call their estate agents. If still problems exist, both parties should go to the court to resolve the issues. Both parties should avoid the quarrels.

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(31) Comments

  1. Anas nadeem

    on   said 

    Fazaia has located it’s site near dream world in gulshan e Maymar , which is far away from the city center,it is the only thing which is concerning me if I am going to get a good return on my investment or am I going to lose my money in it.

    Reply
  2. Anas nadeem

    on   said 

    I would like to know about fazaia appartments karachi.Are they going to have much demand in future and are there prices going to rise? And approximatrly what price am I going to receive if I sell them now with all installments paid till the date?

    Reply
    • Anas Nadeem
      PRICE NOW
      At the moment property market is dead due to new wave of terrorism and political turmoil. Its not the time to sell property as you will not get good offer
      PRICE IN FUTURE
      Yes Fazaia Apartments Karachi is one of the top developments with lot of facilities. Increasing population, better law and order situation and political stability will increase lot of demand in future. Its better to sell later when everything is on place.

      Reply
  3. muhammad azeem uddin

    on   said 

    sir I want to purchase open registration certificate of Fazia housing. Kindly send me any contact from your reference

    Reply
    • Muhammad Azeem Uddin
      Fazaia housing has just two numbers which I have mentioned in Bungalows’ post.
      Just contact them they will tell you the complete procedure.
      Moreover if they have some dealership or dealers working on their behalf, they will inform you.

      Reply
  4. Nazish fatima

    on   said 

    I have RS 50 lakh .kindly advise me where to invest. I have visit gulshan e mayer karachi and I am getting 120 sq/yard home and also visit behria town khi where I can buy flat.what is your precious advise for me.

    Reply
  5. muhammad azeem uddin

    on   said 

    dear sir , I just know that FAZAIA housing is near gulshan e maymer northern by pass and enterence is not good. so what is your opinion that in future investment the prices will increased? what would think your analysis?

    Reply
    • Muhamamd Azeem Uddin
      There is new master plan for Karachi like 2020 MASTER PLAN
      This area will have good location
      When you will complete the installments after 5 years, price will be high and location will be good.

      Reply
        • Nawaz
          All projects are good for long term investment like 2020-2025
          But in short term DHA Bahawalpur is more promising than DHA Gujranwala and DHA Multan.
          DHA Bahawalpur is soon to offer bungalows and balloting will held late this year.

          Reply
  6. muhammad azeem uddin

    on   said 

    sir thank you for your opinion. I have contact both ASF HOUSING and FAZAIA. Asf have closed the booking and waiting for balloting however fazia have open for booking for balloting. if some one want to book then he has good oppurtunity.

    Reply
  7. muhammad azeem uddin

    on   said 

    sir what about ASF housing scheme near safoora chowrangi jinnah avenue Karachi. should you think it is good investment. we also geared that FAZAIA housing were launching FLAT at sharah e faisal. Kindly say about it. send link how to buy.

    Reply
  8. ZAHID ALI

    on   said 

    Who is responsible for painting if tenant is living for the last five years in same house? Tenant or landlord

    Who is responsible to pay the cost of stamp paper? tenant or landlord

    Who is responsible for breakdown maintenance (e.g. any equipment fan/tap was working when tenant shifted but during his stay it malfunctioned?

    Reply
  9. muhammad azeem uddin

    on   said 

    sir what you suggest to invest in ASF housing society. I have hear that FAZAIA housing have launched BUNGLOWS. so please advise for buying or I should wait till New budget june 2017. similarly I have read in newspaper that FBR have set target 4200 billion more than 600 b from 2016. it means we should see some heavy taxes . your advise and opinion will be highly appreciated.

    Reply
  10. Is there any specimen / formal agreement for furnished premises. Please provide at forum if available.

    What should be duration of Agreement – 11 months. Do we have to make new agreement every time or just a renewal signed by both the parties. If the parent agreement signed by both the parties have signed and agreed for 10% annual escalation, would it be binding on Tenant to comply or dispute this clause later ?

    Reply
    • Dr. Saleem Siddiqi
      There is no specimen
      The agreement in Pakistan between Property owner and tenant is registered via stamp paper
      Stamp forosh can help it out if no property dealer is involved.

      AGREEMENT PAPER WORK (WHAT IS WRITTEN IN AGREEMENT)

      Names of both parties
      Current addresses
      ID Card copies
      Address of the property being leased
      Duration of tenure (one year which is actually 11 months)
      10% rise in rent after completion of tenure
      Also both parties mention in agreement to give one month’s notice if property to be evacuated by owner or if tenant is moving to some other property.
      Both parties register the rent agreement in the nearby police station

      PAYMENTS
      Tenant pays for 3 months rent. 2 months rent as security or advance payment. One month’s rent in advance.

      RENEWAL OF RENT AGREEMENT
      Rent agreement is not annually renewed if stay is extended as original agreement is sufficient. Automatically tenant is liable to pay 10% extra rent after one year / 11 months. When disputes happen, even courts calculate the rent amount with 10% increase for the long stays.

      Reply
  11. Your articles are very informative
    and realistic analysis. Please guide me as I want to investment in bahria orchard phase 4.
    In your opinion what will be its future for 6 to 7 yrs period

    Reply
    • Afifa

      Bahria Orchard is generally considered as one of the top investment option in Lahore now a days.
      Reason 1:
      Near to Lahore Ring Road Southern Loop
      Reason 2:
      LDA is not issuing NOC’s to housing societies as Lahore has expanded in every direction and its very hard to provide infrastructure for such a vast area

      6-7 Years Investment
      It will be one of the most famous development of Bahria Town and will be very expensive. Like in 2025 its price will appreciate 5-10 times due to scarcity of Land.

      Bahria Orchard Phase 4 is good for only long term investment and will only benefit to those who will hold it for 2-3 years at-least.

      HERE IS THE INSTALLMENT PLAN OF BAHRIA ORCHARD 4:

      http://ghar47.com/property/bahria-orchard-lahore-phase-4-payment-plan-new-deal-booking-details/

      Reply
    • Sahib

      Property market is stagnant
      Sellers are trying hard to find buyers. One guy in Gujranwala has reduced the house price by 20% but still no buyer.

      NEW PROJECTS
      Many new projects are uncompleted and launch of new project is low. Even good project on affordable prices are not selling fast

      Property worth more than 6 MILLION
      Small properties have strong buyers and demand but large and expensive properties are not selling.

      WHY MARKET IS STAGNANT?

      ARAB WORLD
      Arab countries are expelling Pakistani workers, 39,000 workers laid off in last 3 months only in Saudi Arabia
      These are the people who invest in property sector.
      No job means no money and also no investment in Pakistan property sector.

      CONFUSION & BLACK MONEY
      In Pakistan high property prices are only due to black money. Government has offered amnesty scheme but investors are afraid of it as a big trap and are preferring to remain away from property sector. People are also afraid that there might be crackdown on black money in near future. Another reason is the political instability.

      HIGHER TAXES ON PROPERTY TRANSACTIONS
      According to real estate agents, high taxes on sale and purchase of properties have cooled down the property market in Pakistan. Many people think that government will only revise the property tax in the next budget due after 4 months and these changes will set the future of property market. Many people also think that as taxes are still lower as compared to other countries, so government will not roll back the taxes.

      Reply
    • Murad Azam
      Its true as many quarrels can be seen due to tenancy.
      Its better for both parties to remain professional and avoid disputes that lead to fight.
      Best way to resolve disputes in via COURTS

      Reply

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