From Screening Tenants to Signing the Lease: A Step-by-Step Guide to Renting Out in Pakistan

In our previous blog on the subject, we had informed you of your rights and obligations as landlords and tenants in Pakistan. If you haven’t already, do give this short blog a read as it will inform you about what you can and can’t do while renting out your property or renting someone’s property. In this blog, we will inform you about how to make your property more appealing to potential tenants and more importantly, how to find the perfect tenant quickly.

Make Your Property Attractive for Prospective Tenant

Most of the time both parties fail to reach an agreement due to the amount of rent. The potential tenant feels that the landlord is asking for too much; on the other hand, the landlord feels he/she is not getting the most out of his/her property. One way to avoid this situation for landlords is by making their property attractive for potential tenants.

White washing or painting the property can go a long way in attracting the right tenant. While you would be getting the rent of your choice, you would also be adding to your property’s life. Also, check for any seepage and electric issues in the property and have them fixed before a tenant visits it. Also have your paperwork in order and utility bills paid and updated for the future tenant to view and satisfy themselves.

What Should be the Rent of Your Property?

To avoid scaring a good tenant away, think of a reasonable rent amount which the tenant may be willing to pay based on the location of your property and prevailing economic conditions. For example, if you own a 5 marla house in a middle income locality where the going rent for a similar property is Rs.30,000, if your house is freshly painted with some civil work done on it, you can perhaps ask for a Rs.35,000 – Rs.40,000 per month rent. Asking for an amount in the range of Rs.50,000 or more will attract very few tenants or the wrong types of tenants with a lot of money but ulterior motives, which you should avoid at all costs.

Rent Agreement

Even before you finalize a tenant and reach a verbal agreement with him/her, there are a few things you must be absolutely clear about. There must not be any ambiguity in your mind regarding the rental agreement, its terms and conditions, etc. You must have a written rental agreement even if the tenant is your friend or relative.

Furthermore, it should have:

  • Personal details of both parties like name, address, CNIC number (make sure it is valid), etc
  • Property details, including its address
  • Purpose for which the tenant is renting out the property
  • Monthly rent and its details like when is it to be paid, and in which form (cash, cheque) etc
  • Advance rent/security deposit amount details, whether it is refundable or not and under what circumstances, etc
  • Duration of the rental agreement and whether it is renewable with mutual consent, etc

Pro Tip: Even if the tenant is supposed to pay you in cash, ask for post-dated cheques. Once he/she pays the rent in cash, return the cheque to him/her. This would bind the tenant to pay the rent on time. In any case, a bounced cheque is a non-bailable offense in Pakistan.

How to Find a Good Tenant

And now to the section you’ve been waiting for. How to find the tenant who will pay the rent on time, not misuse or damage your property, use it for some illegal activity and worse, refuse to vacate it when you ask him/her to.

These are some golden rules to follow when renting out your property:

  • Haste makes waste. Never rent out in a hurry even if you desperately need the money.
  • Give preference to the one who is being referred by your friend or relative or someone who is known to you.
  • If a potential tenant has come through your local property dealer, ask that property dealer if he is willing to take responsibility of that person in case of violation of the rental agreement
  • Ask a potential tenant where he/she lived before. Ask their previous landlord about their behavior and conduct. While not always possible, it is worth the pain.
  • Ask a potential tenant about his/her profession. Always rent out your property to someone with a steady income.
  • Check his/her criminal record (if any). Ever since the scourge of terrorism in Pakistan has raised its head, it has become mandatory in many provinces to submit the details of your tenant with the local police station. In the next section, we will inform you how to do this.

Tenant Police Verification

It may be mandatory to submit the details of your rental agreement with the local police station. Even if it isn’t, it is in your own interest to let your local police station know the details of your tenant. Depending upon where your property is, there are various ways of doing it.

Tenant Police Verification in Punjab

If your property is in Punjab then you can either:

  1. Physically visit the local police station and submit a copy of the rental agreement along with the copies of your and your tenant’s CNIC. Or
  2. You can submit the details online by visiting https://punjabpolice.gov.pk/tenants
  3. You can also download Punjab Police’s Tenant & Employee Registration app and submit the details there.

Tenant Police Verification in Sindh

If your property is in Sindh then apparently there is no facility to submit your tenant’s details through an app. Though you can visit your local police station or file the details online by visiting Tenants Registration System.

Tenant Police Verification in Islamabad

If you are renting out your property in Islamabad then you will have to follow these steps:

 

We hope this blog will help you avoid the wrong tenants, not receiving rent on time and misuse and damage of your property. Do leave a comment if you have suggestions of your own. If you are in the market for a rental property or looking to rent out your property anywhere in Pakistan, browsing the extensive listings available on OLX Pakistan’s property section could be a valuable resource for you.

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