Punjab’s Rental Law Explained

In Pakistan, a common man is often unaware of his legal rights. One such law that has come to my attention is the rent law especially in Punjab. Last month, I was renting my own house and was shocked to find out that even the most experienced property dealers, who were helping me find a suitable tenant, were unaware of the existing rent laws in Punjab. Therefore, the main purpose of this article is to educate the masses, especially the landlords and the tenants, regarding the basic legal information that they must acquire before entering into a rental relationship.

The existing rent law in Punjab is called ‘The Punjab Rented Premises Act, 2009’ (hereinafter the “Rent Law”).

• The most important aspect of the Rent Law,  according to Section 5 of the Rent Law, is that all rent agreements must be registered with the Rent Registrar. If a rent agreement is not registered then the landlord could possibly face many problems in case the tenant refuses to vacate the premises. The landlord will also be subjected to a heavy fine if the rent agreement is not registered. It is surprising that most landlords and even property dealers are not aware of this simple law of registering the rent agreement. It is also interesting to note that almost 90% of the landlords, while renting their premises, do not fulfill this compulsory requirement of registering their rent agreements.

• Furthermore, many rent agreements nowadays do not meet the requirements of a valid rent agreement. According to Section 6 of the Rent Law, a rent agreement must contain the following clauses:

1. Particular, details, address etc. of the landlord and tenant
2. Description of the premises
3. Period of tenancy
4. Rate of rent, rate of enhancement, due date and mode of rent payment
5. Particulars of the bank account of the landlord, if the rent is to be paid through a bank
6. The purpose for which the premises is let out
7. The amount of advance rent, security or pagri

Obligations of a landlord

Apart from foregoing, most of the landlords and tenants are not aware of their duties and obligations. According to Section 12 of the Rent Law, the obligations of the landlord are:

1. He should repair the premises so that it is kept in a good living condition.
2. He should pay all taxes and charges of the premises.
3. He cannot cut the electricity, water and any other utility from the premises.
4. He cannot enter the premises without giving the tenant a reasonable notice.

Obligations of tenants:

On the other hand, the tenants also have some obligations. According to Section 13 of the Rent Law, these obligations include:

1. He must keep the premises in the condition in which it was let out except normal wear and tear.
2. He can only use the premises for the purpose for which it was let out.
3. He must allow the landlord to enter the premises for the purpose of inspection or repair.
4. He must hand over the vacant possession of the premises to the landlord on the expiry of the tenancy.
5. He must not cause nuisance to the neighbours of the premises.
6. He must not make a structural change to the premises without the prior written approval of the landlord.
7. He must pay rent on the due date regularly.

When can a landlord evict his tenant?

Final and the important aspect of the rent law is regarding the eviction of tenant. Most rental disputes in courts are about tenant eviction. A landlord must be aware of the grounds under which a tenant can be evicted from his premises. The said grounds of eviction are given in Section 14 of the Rent Law, they include:

1. The period of tenancy has expired.
2. The tenant has failed to pay the rent of last 30 days.
3. The tenant has breached any term of the tenancy agreement.
4. The tenant has used the premises for a purpose which is different from the purpose the premises have been let out.
5. The tenant has sub-let the premises without the prior written consent of the landlord.

So there you have it, Punjab’s Rent Law in a nutshell. I hope the above mentioned information is useful for all of your, especially for those entering into a rental agreement. In case you have queries related to this or any other legal matter, you can get in touch with me directly via commenting on this blog or writing to us.