With property prices soaring at unprecedented rates, becoming a homeowner has become near-impossible for the general population. This has led to an exponential increase in the popularity of rental properties throughout the country.
Whether you’re a landlord or a tenant, you are bound to encounter several rental agreements, and having a sample can cut down the hassle of forming a new agreement. Graana.com features a rent agreement format that you can use on the go to ease the process.
What is a Rental Agreement?
Before delving into the agreement format, it is essential to understand the basics of a rental agreement. A rent agreement is a legally binding contract in the tenant-landlord agreement. The contract’s key points depend on negotiation between both parties. However, there are certain state-issued rules that the contract must abide by.
The rent agreement consists of several key factors: contract duration, monthly rent, rent due date, annual increment rates, and miscellaneous points discussing repair and maintenance costs. Both sides must agree with every single clause in the agreement to be valid.
Rent Agreement Format
Following is a rent agreement sample that you can use while renting a house in Pakistan.
TENANCY RENT AGREEMENT
This rent agreement is signed at [city name], on this day of _________ date.
Hereinafter known as the “landlord” of the one part.
Hereinafter known as the ‘tenant’ of the other part.
Whereas the landlord confirms that he is legally competent to rent out ______________________________ ____________________________________________________ with necessary electrical fittings and fixtures therein. The landlord has agreed to rent and the other party has agreed to accept the rent of said property.
NOW, THEREFORE, THIS AGREEMENT IS WITNESSETH AS UNDER:-
- That the payment due each month for the property will be Rs. _____________.
- That the duration for the contract shall be Twelve (12) months. The agreement shall initiate from __________ and expire on __________.
- That the property will not be sublet and will not be used for illegal activities or any other reason but ‘Residential” use only.
- That the Landlord has received from the tenant a sum of Rs. ______________________ being the _________ month’s advance rent and Rs. __________________________ being the _________ month’s Security Fixed Deposit.
- That the Tenant will submit the monthly due rent to the homeowner/Landlord on or before the 5th of every calendar month till the expiry of the rent agreement.
- That the tenant will submit the due rent regularly for the tenancy period and shall be responsible for paying water, electricity, maintenance, and other bills. The photocopy of these bills shall be submitted to the landlord in due time.
- That the Tenant will allow the landlord or their authorised person to visit the property to view the condition at a 24-hours prior notification.
- That the Tenant will be responsible for maintaining the property in good condition and will hand over the possession of the property to the rightful owner upon termination of the rental agreement.
- That the residing Tenant will not make any changes, additions, and modifications to the said premises.
- That either party shall provide a four (04) week written notice to the other for the termination of the rental contract.
- That on the expiration of the contract duration of twelve months, this rental agreement can be extended/renewed by a consensual agreement from both sides for any further period; otherwise, after twelve months, the Tenant will give the vacant possession of the said property.
- That the Tenant will not be allowed to use the said property for any illegal activity or business.
- That both parties involved in the agreement have decided to increase _______% rent every year.
- Both the parties have finalised the contract by themselves after satisfaction and inspection of premises, including title documents and legal right of the landlord to rent as well as status and credentials of each other.
In witness whereof, the parties named above have ascribed their hands hereto legitimise this agreement at _______ (city name) and the date mentioned above.
Witness from the owner’s side Witness from the tenant’s side
In Pakistan’s fast-paced real estate market, rental properties has become the population’s go-to option for housing. In this market, a rent agreement is something that you will encounter. With a sample rent agreement format ready to use, the process can become a breeze. Visit Graana.com – Pakistan’s first online real estate market.