Whether you are letting a flat in Karachi or taking a shop in Lahore, the rent agreement is the single document that decides what happens if things go wrong. Yet most tenancies in Pakistan rest on a photocopied template that ignores the governing law and leaves out the clauses that actually matter. This guide walks you through the legal framework, when you must register and stamp the deed, the mandatory police registration of tenants, and a full checklist of key clauses. For a related comparison, see our note on lease versus ownership in Pakistan.
The law that governs your tenancy
Renting is regulated at two levels. The general contract and property rules are federal - the Transfer of Property Act 1882 (sections 105 to 117 define a lease), the Registration Act 1908, and the Stamp Act 1899. On top of these, each province has its own rent-control statute that fixes tenant and landlord rights and creates the Rent Controller or Tribunal that hears disputes.
| Region | Governing rent law | Dispute forum |
|---|---|---|
| Punjab | Punjab Rented Premises Act 2009 | Rent Tribunal |
| Sindh | Sindh Rented Premises Ordinance 1979 | Rent Controller |
| Khyber Pakhtunkhwa | KP Rented Premises Act 2010 | Rent Controller |
| Islamabad (ICT) | Islamabad Rent Restriction Ordinance 2001 | Rent Controller |
| Balochistan | Balochistan Rented Premises Ordinance 1959 / 2012 | Rent Controller |
Always draft to the statute of the province where the property sits - a Sindh tenancy answers to the 1979 Ordinance, not the Punjab Act.
Registration: when it is compulsory
Under section 17 of the Registration Act 1908, a lease of immovable property from year to year, or for a term of one year or more, must be registered with the Sub-Registrar. A tenancy for less than a year does not require registration. This single rule explains the country's most common practice: the 11-month agreement. By keeping the term just under a year, the parties get a fully enforceable document without the cost and delay of registration, then simply renew it.
Common myth: an unregistered 11-month agreement is not "fake" or weak. It is valid, admissible for most purposes, and enforceable before the Rent Controller. Registration becomes essential only for longer leases, or where you want the deed to be conclusive evidence of a long-term interest. For the mechanics of registered deeds, see our guide to the Sub-Registrar and property registry.
Stamp duty and the cost of the deed
Every rent agreement should be executed on judicial stamp paper, with duty levied under the Stamp Act 1899. The rate varies by province and by the annual rent, and provinces revise it in their finance acts, so treat the figures below as typical ranges rather than fixed law - confirm the current rate at the stamp vendor or Sub-Registrar office before signing.
| Item | Typical position | Notes |
|---|---|---|
| Stamp paper (ordinary tenancy) | PKR 500 - PKR 2,000 | Higher band as annual rent rises |
| Registration (term under 1 year) | Not required | The 11-month route |
| Registration (term 1 year or more) | Percentage of annual rent | Plus Sub-Registrar fee - varies by district |
| Attestation / witnesses | Two adult witnesses | CNIC copies attached |
For a fuller province-by-province breakdown, read our stamp duty guide. Exact fees vary by province and district, so where the amount is material, take a quick consultation before you commit.
Registering the tenant with the police
This step is frequently skipped and frequently regretted. Most provinces require the landlord to report a new tenant's details to the local police station. In Punjab the duty flows from the Punjab Information of Temporary Residents Act 2015, and registration is now handled online through the Tenant Registration System, with Islamabad and other provinces operating parallel schemes. The process is free and usually takes minutes.
You will typically need:
- Original and copy of the tenant's CNIC
- Original and copy of the owner's CNIC
- Passport-size photographs of owner and tenant
- A copy of the rent agreement (often on affidavit)
Skipping police verification can expose a landlord to penalty and, worse, means an unvetted occupant - a real risk given the prevalence of rental fraud. See our guide on verifying property documents before you hand over keys.
Key clauses every rent agreement needs
A one-page template is where disputes are born. A sound agreement spells out each of the following:
| Clause | What it should state |
|---|---|
| Parties | Full names, CNICs and addresses of landlord and tenant |
| Property | Exact address, covered area, and what is included (fixtures, parking) |
| Term | Start and end dates - commonly 11 months, with renewal terms |
| Rent | Amount, due date, payment method and bank details if applicable |
| Security deposit | Amount held, and that it is refundable less lawful deductions - not last month's rent |
| Annual increase | The agreed increment (commonly around 10%), within the provincial cap |
| Utilities and maintenance | Who pays bills, taxes and repairs |
| Use | Residential or commercial; no subletting without written consent |
| Notice and termination | Written notice period (commonly 30 days) for either side |
| Dispute resolution | Reference to the Rent Controller / Tribunal of that province |
Security deposit, rent increase and notice
Three clauses cause most quarrels. The security deposit is a guarantee against damage; the landlord holds it and returns it when the tenant vacates, minus genuine repair costs - it may not be treated as the final month's rent. The annual increase must respect the provincial ceiling: in Sindh, increases are broadly limited to around 10% every three years, while elsewhere an annual increase of about 10% is commonly written in. The notice period, usually four weeks or one month in writing, applies to both sides. Fix all three in figures, not vague promises.
Eviction, possession and staying safe
A landlord in Pakistan cannot evict by self-help - no changing locks, no cutting electricity, no forced removal. Ejectment requires an order from the Rent Controller or Tribunal on lawful grounds: non-payment of rent, unauthorised subletting, structural damage, or a genuine personal need for the premises. Taking possession by force can amount to an offence under the Illegal Dispossession Act 2005, and the tenant may seek relief under the Specific Relief Act 1877. Our guides on the eviction process for landlords and tenant rights set out the procedure step by step, and qabza remedies cover forced occupation.
Frequently asked questions
Does a rent agreement have to be registered?
Only if the term is one year or more, under the Registration Act 1908. A tenancy under a year - the standard 11-month deed - needs no registration but should be on stamp paper.
Why 11 months and not 12?
A term under one year avoids compulsory registration, keeping the deed cheap and simple while remaining fully enforceable and easy to renew.
How much stamp duty do I pay?
It varies by province and rent value, commonly PKR 500 to PKR 2,000 of judicial stamp paper for ordinary tenancies. Confirm the current provincial rate before signing.
Is police registration of the tenant compulsory?
Yes in most provinces. Punjab requires it under the 2015 Act via the online Tenant Registration System; Islamabad and others run similar schemes. It is free.
Can the landlord raise rent whenever they want?
No. The increase is whatever the agreement states, within the provincial cap - broadly 10% every three years in Sindh, and commonly about 10% a year elsewhere.
Can I be evicted without a court order?
No. Eviction needs a Rent Controller or Tribunal order on lawful grounds. Lock-changing or utility cut-offs are unlawful and can be illegal dispossession.