Introduction

A rent agreement is one of the most important documents in any landlord-tenant relationship in Pakistan. Whether you're renting a small room or an entire commercial building, having a properly drafted agreement protects both parties and prevents disputes.

In this comprehensive guide, we'll walk you through everything you need to know about creating a rent agreement in Pakistan — from the legal requirements to the essential clauses you should include.

What is a Rent Agreement?

A rent agreement (also called a tenancy agreement or lease agreement) is a legal contract between a landlord (the property owner) and a tenant (the person renting the property). It defines the terms and conditions under which the property is rented, including the rent amount, duration, maintenance responsibilities, and termination conditions.

Stamp Paper

While a rent agreement on plain paper can serve as evidence of an arrangement, using stamp paper gives it more legal weight. The required stamp paper value varies by province:

  • Punjab: PKR 50-100 for standard agreements
  • Sindh: PKR 100-200 depending on rent amount
  • KPK: PKR 50-100
  • Balochistan: PKR 50

Check with your local stamp vendor or revenue office for the current rates.

Witnesses

Having two witnesses sign the agreement is standard practice and strongly recommended. While not always legally mandatory, witnesses strengthen the agreement's validity and provide verification if disputes arise.

Registration

Registration requirements vary by province. In general, agreements exceeding 11 months should be registered with the Sub-Registrar's office for maximum legal protection.

Essential Clauses to Include

  1. Names and CNIC numbers of both landlord and tenant
  2. Property description — complete address and type
  3. Rent amount and payment schedule
  4. Security deposit amount and refund terms
  5. Duration of the agreement
  6. Notice period for termination
  7. Maintenance responsibilities
  8. Utility payment terms
  9. Subletting clause
  10. Annual rent increase clause

Step-by-Step Process

  1. Choose a template — Browse our template library for your city and property type
  2. Fill in the details — Use our free generator to enter all required information
  3. Review carefully — Check all names, amounts, dates, and clauses
  4. Print on stamp paper — If desired, print the agreement on appropriate stamp paper
  5. Sign and witness — Both parties sign, and two witnesses attest
  6. Keep copies — Each party retains a signed copy
  7. Consider registration — For agreements over 11 months

Common Mistakes to Avoid

  • Not including CNIC numbers of both parties
  • Vague property description
  • No mention of security deposit refund conditions
  • Missing notice period clause
  • Not specifying who pays which utilities
  • Forgetting to include the rent increase clause