Pakistan Rental Laws: Pro-landlord, Neutral or Pro-tenant?

Pakistan's landlord and tenant laws are judged by the Global Property Guide to be Pro-Tenant between landlord and tenant. The legal framework is designed to protect tenants from arbitrary eviction, sudden rent hikes, and unfair treatment, reflecting a strong emphasis on tenant security and housing stability. Tenants often benefit from protections such as requiring landlords to follow formal legal procedures to evict them, limits on rent increases in some regions, and rights to renewal or continuation of leases. Eviction is typically a lengthy process that requires court or Rent Controller involvement, making it harder for landlords to remove tenants quickly.

Can landlord and tenant freely agree rents in Pakistan?

In Pakistan, landlords and tenants generally have the freedom to agree on rent amounts in private rental agreements. The rental market operates largely on a contract basis, allowing parties to negotiate and set rent terms according to their preferences. However, it’s important to note that Pakistan’s rental laws vary significantly by province and city, with some regions having rent control laws or rent regulation acts that can restrict rent increases or set maximum rents for certain categories of properties. For example, major cities like Karachi, Lahore, and Islamabad have their own rent control regulations, which may limit how much rent can be charged or increased annually, especially in older or government-subsidized housing.

Deposits

There is no nationwide legal cap on the amount a landlord can request as a security deposit, however landlords in Pakistan request a security deposit equivalent to 1 to 3 months' rent. This amount serves as financial protection against potential damages or unpaid dues. The deposit should be clearly documented in the tenancy agreement, and landlords are required to provide receipts for any payments received. Upon termination of the lease, the landlord must return the deposit, minus any lawful deductions, within a reasonable timeframe. Disputes over the withholding of deposits can be addressed through local rent controllers or civil courts

What rights do landlords and tenants have in Pakistan, especially as to duration of contract, and eviction?

Lease agreements in Pakistan can be for a fixed term or open-ended. Typically, residential tenancy agreements are for one year, but the parties are free to agree on longer or shorter durations. Many leases automatically renew if neither party gives notice to terminate. It is important that the lease agreement is in writing and clearly states the duration, rent amount, and other key terms, though oral agreements are also common in practice.

Eviction laws in Pakistan tend to be tenant-protective, making eviction a legal process that requires the landlord to follow certain procedures. A landlord cannot forcibly remove a tenant without obtaining a formal eviction order from a Rent Controller or a court. The landlord must usually show just cause for eviction, such as non-payment of rent, damage to the property, or illegal use of the premises. The eviction process generally starts with the landlord serving a written notice to the tenant to pay overdue rent or rectify breaches. If the tenant fails to comply, the landlord can file an application with the Rent Controller. The Rent Controller hears the case, and if the landlord’s claim is upheld, an eviction order may be issued. The tenant usually has the right to appeal.

Some regions provide special protections for certain tenant categories, such as families or low-income tenants, making eviction more difficult. In many provinces, once a “fair rent” is established by the Rent Controller, the landlord cannot increase rent or evict the tenant without cause for a specified period, often three years.

Legislation

Tenant and landlord relations in Pakistan are primarily governed by provincial rent control laws and tenancy acts, as there is no single federal law covering the entire country. These laws differ by province and sometimes by city, reflecting regional variations in regulation.

For example:

• In Punjab, the main law is the Punjab Rented Premises Act, 2009, which regulates rent control, eviction, security deposits, and tenancy agreements.

• In Sindh, the Sindh Rented Premises Ordinance, 1979 governs landlord-tenant relations, focusing on fair rent and eviction procedures.

• In Khyber Pakhtunkhwa, the Khyber Pakhtunkhwa Rented Premises Act applies.

• In Balochistan, the Balochistan Rented Premises Ordinance is relevant.

• Islamabad Capital Territory is regulated under the Islamabad Rent Restriction Ordinance, 2001.

• Cantonment areas fall under the Cantonments Rent Restriction Act, 1963.

How effective is the Pakistani legal system?

The effectiveness of the Pakistani legal system in eviction cases is generally mixed and depends on several factors, including the region, type of property, and specifics of the case.

In many parts of Pakistan, eviction—especially of residential tenants—can be a slow process. The laws tend to favor tenants to protect them from arbitrary or sudden eviction, which means landlords must follow strict legal procedures to evict tenants. This often involves serving formal notices, filing cases with Rent Controllers or civil courts, and waiting for court hearings and decisions, which can take months or even years due to case backlogs and procedural delays.

Because of these delays, landlords sometimes face significant challenges in regaining possession of their property, especially if tenants dispute eviction orders or fail to vacate voluntarily. Enforcement of eviction orders by authorities can also be inconsistent, and in some cases, landlords may resort to informal or extra-legal measures, which carry legal risks.

Brief history: Recent changes in Pakistani landlord and tenant law

No new legislation, or amendment to the existing legislation, is anticipated in the near future nor has there been any recent radical de-regulation or re-regulation in this area.

Although the law may seem pro-tenant, and indeed although the preambles to these various legislations state: "it is expedient in the public interest to restrict the increase of rent of certain premises within (the specified) limits and the eviction of tenants there from," in fact the courts have held that these laws are not only confined to their preamble object (to restrict increase of rent and the eviction of tenants), but are also aimed at protecting and regulating the interests of both tenants and landlords.