Residential Lease and Rental Lease

Residential Lease and Rental Lease

Dr. Muhammad Mubushar

Noon Business School, University of Sargodha
Mubushar.raja@gmial.com
Residential Lease and Rental Lease

What is a Residential Lease Agreement?

 A residential lease agreement, sometimes referred to as a lease or rental

agreement, is a legal contract a tenant and landlord sign when a tenant

decides to rent a residential property. It outlines the terms and conditions

of the tenancy, including the obligations and rights of the tenant and

landlord. Tenants and landlords can use residential lease agreements for

a variety of residential properties, including townhouses, houses,

apartments, and more.

Residential Lease and Rental Lease

Difference between Residential Lease and rental House:

 A rental agreement provides for a tenancy of a short period (after 30day)

that is automatically renewed at the end of the period unless the tenant or

landlord ends it by giving written notice. A lease agreement is a contract

between a landlord and a tenant that covers the renting of property for

long periods of time, usually a period of 12 months or more, when a

lease expires it does not usually automatically renew itself.

Residential Lease and Rental Lease

What are the Landlord's and Tenant's Obligations

 The landlord's most important obligations in a residential lease

agreement include:
• Giving the tenant access to the property
• Obligations to maintain or repair the structure of the property. All
repair and maintenance will be done by the landlord. If these expenses
are paid by the tenant then he will deduct while paying the monthly rent.
• Allowing the tenant to enjoy the property undisturbed
 Residential Lease and Rental Lease

What are the Landlord's and Tenant's Obligations

On the other hand, the tenant's most important obligations in a lease

agreement include:

• Paying rent on the agreed-upon date

• Not to cause damage to the property

• rent” includes arrears of rent, a utility bill and any amount that may be

payable by a tenant in relation to the tenancy;

Residential Lease and Rental Lease

Residential lease agreement

•Name of the landlord and tenants: A residential lease agreement must

specify the name and address of the tenant and the landlord. All tenants

over the age of 18 must be named on the lease.

Name of both parties (Landlord and Tenant)

CNIC of both parties

Address of both parties

E-mail of both parties

 Residential Lease and Rental Lease

Residential lease agreement

Description of the property: The lease agreement should also specify

the type of property being rented and its complete address, including

the building or unit number, street name, town, state, and ZIP/postal code.

It should also specify any specific parking spots or storage areas as well as

the areas that the tenant is not allowed to access.

Residential Lease and Rental Lease

Residential Lease agreement

Agreement between landlord and tenant.– (1) A landlord shall not let

out a premises to a tenant except by a tenancy agreement.

      (2)  A landlord shall present the tenancy agreement before the Rent

Registrar.

      (3)  The Rent Registrar shall enter the particulars of the tenancy in a

register, affix his official seal on the tenancy agreement, retain a copy

thereof and return the original tenancy agreement to the landlord.

Residential Lease and Rental Lease

Residential Lease agreement

Term of the lease: This refers to the date the residential lease agreement

is valid for, including the tenancy length, the start date, and the expiration

date. Many yearly leases automatically convert to monthly leases once the

original lease term ends.

Police Verification: The landlord will ask about the police

verification/clearance for the lease agreement and must provide the copy

of certificate and agreement to the local police station.

Residential Lease and Rental Lease

Residential Lease agreement

Rent amount and due date: The lease agreement must specify how much

and when rent is due. It must indicate the full amount of rent due over the

period of the entire lease and the amount due per month. It must also

specify acceptable payment methods, whether the landlord charges a late

payment fee, and grace period (if any).

“pagri” includes any amount received by a landlord at the time of grant or
renewal of a tenancy except advance rent
Security deposit will be returned to the tenant after deduction/adjustment with
in the 30 days of obtaining the possession of property
Residential Lease and Rental Lease

According to Punjab rent Act 2009

 A tenant shall pay the rent to the landlord in the mode and by the date

mentioned in the tenancy agreement.

 If the date of payment is not mentioned in the tenancy agreement, a tenant

shall pay the rent not later than tenth day of the following month.

 If the mode of payment is not mentioned in the tenancy agreement, a

tenant shall pay the rent to the landlord through money order or deposit in

the bank account of the landlord.

Residential Lease and Rental Lease

According to Punjab rent Act 2009

 Security deposit terms: The lease agreement must also specify a security

deposit clause, which includes the amount of security deposit collected,

the date the security deposit was collected, interest rate, name and address

of the bank where the security deposit is held, reasons deductions can be

taken from the deposit, and the procedures for issuing a refund.
 The landlord can increase the rent if government increase the property
taxes or landlord provide the additional facilities. According to law, the
landlord can increase the rent up to 10% after 1 year or 25% after the 3
years.
Residential Lease and Rental Lease

According to Punjab rent Act 2009

 Repair and maintenance policies: The agreement should also clearly

explain the repair and maintenance policies, including the tenant's

responsibility to maintain sanitary and clean premises and to pay for any

damage they cause, a requirement that the tenant notifies the landlord

about dangerous or defective conditions, and restrictions on tenant

alterations and repairs.

Residential Lease and Rental Lease

According to Punjab rent Act 2009

 Reimbursement of expenses.– (1) If a landlord fails to pay a tax, fee or

charge relating to the premises, the concerned authority may direct the

tenant to pay the tax, fee or charge.

 (2) The tenant shall pay the tax, fee or charge relating to the premises and

defray the amount from the rent or file an application against the landlord

in the Rent Tribunal for the recovery of the amount of tax, fee or charge

paid by him.
Residential Lease and Rental Lease

According to Punjab rent Act 2009

 Grounds for eviction.– A landlord may seek eviction of the tenant if–
(a)  the period of tenancy has expired;
      (b)  the tenant has failed to pay the rent within a period of thirty days
after the expiry of the period stipulated in section 7;
      (c)  the tenant has committed breach of a term or condition of the tenancy
agreement;
      (d) the tenant has committed a violation of an obligation under section 13;
(e)  the tenant has used the premises for a purpose which is different from
the purpose for which it has been let out; or
      (f)  the tenant has sub-let the premises without the prior written consent of
the landlord.
The landlord takes eviction from the tenant for his personal usage and if he
does not use it with in 1 month and give to somebody else after two
months, the tenant can take the procession back of this residential property
through court process.
 
Residential Lease and Rental Lease

According to Punjab rent Act 2009

In addition to the clauses in a standard residential lease agreement, a

comprehensive residential lease agreement can specify whether or not the
property is furnished, appoint a property manager who acts on behalf of
the landlord, and state whether or not the tenant can operate a home
business on the premises. This type of residential lease agreement also
allows the landlord to include a pet fee or deposit and includes information
about a guarantor or surety. A guarantor is someone, such as the tenant's
parent or close friend, who agrees to pay the rent if the tenant defaults on
rent.
Thank You