Renting a house: documents and red flags

Renting a home in Pakistan still runs largely on trust: a visit, a handshake, an advance. When it goes wrong, the tenant usually finds that the "owner" was not the owner, the deposit has no receipt, or the agreement says something different from what was promised. A little paperwork at the start prevents nearly all of it. This guide covers the visit, the documents, the agreement and the warning signs.

Before the visit

• Know the going rent. Look at similar houses and apartments for rent in the same area. A rent well below the rest is the classic bait.
• Ask who you are dealing with: the owner, a relative of the owner, or an agent. Each is fine, as long as it is true.
• Agree the agent's commission in advance, if there is an agent, and whether both sides pay it. It is commonly a share of one month's rent, but it is whatever you agree, so agree it before the visit, not after.
• Do not pay to view. A fee, token or deposit before you have seen the property is a scam, whatever reason is given.

On the visit: look beyond the paint

Go in daylight, and if you can, once more in the evening.

• Water: open the taps on the top floor. Ask where the water comes from (line, bore or tanker), whether there is an underground and an overhead tank, and who pays for tankers when the line is dry.
• Gas: is there a connection, and what is the pressure like in winter? In many areas this decides whether you can cook in January.
• Electricity: a separate meter for your portion, or a shared one? Shared meters are the most common source of arguments. Check the wiring can take an AC, and whether UPS or solar wiring exists.
• Damp: look at ceilings, the bottoms of walls and inside cupboards for stains, bubbling paint and a musty smell. Fresh paint in one patch is a clue.
• Security and access: the gate, locks, window grilles, street lighting, parking and who else has keys.
• The neighbours: two minutes with a shopkeeper tells you about the landlord and the street.

Take photos of every room, including existing damage. You will want them the day you move out.

Documents to see before you pay anything

1. The owner's CNIC. Original, and take a copy.
2. Proof of ownership. Depending on the area this is a registry or sale deed, a transfer or allotment letter from the housing society or development authority, or a fard from the land record office. The name should match the CNIC.
3. A recent utility bill for the property. It shows the address, the name on the connection and whether there are arrears. Unpaid bills can lead to a disconnection in your name.
4. Authority to rent, if the person is not the owner: a power of attorney or a written authority letter with the owner's CNIC copy, and a phone call with the owner. For a flat in a building, ask whether the building management has any rules or dues.
5. The agent's details, if any: office address, CNIC and a receipt for any commission.

A genuine owner is not offended by these requests. They will ask for your CNIC and references too, and that is reasonable.

The tenancy agreement

Put it in writing, on stamp paper, signed by both sides with two witnesses. Each province has its own tenancy law and procedures, and several require the agreement or the tenant's details to be registered, so ask a local deed writer or lawyer what applies in your city. Whatever the format, make sure these points are written down:

• Names and CNIC numbers of landlord and tenant, and the full address of the property.
• The monthly rent, the date it is due and how it will be paid.
• The security deposit: the amount, that it is refundable, and the conditions and time for its return.
• The term. Many agreements are written for eleven months and renewed; make sure the start and end dates are stated.
• The yearly increase, as a percentage, so there is no surprise at renewal.
• Who pays which bills, and what happens with a shared meter.
• Who is responsible for which repairs. Usually structure, plumbing and wiring are the owner's, and day-to-day wear is the tenant's.
• The notice period for either side to end the tenancy.
• What is included: fans, geyser, AC, kitchen fittings, furniture. Attach a list with their condition.
• Rules that matter to you: sub-letting, pets, guests, parking.

Read every line before signing, and keep an original, not a photocopy.

Police registration of tenants

In much of Pakistan, landlords and tenants are legally required to give tenancy details to the local police station, and some provinces provide an app or online form for it. It takes little time and protects both sides. Ask the landlord to complete it with you, and keep the acknowledgement.

Paying the deposit and advance

• Pay only after you have seen the property, checked the documents and signed the agreement.
• Pay by bank transfer or cheque to the owner's own account where you can. If you pay cash, do it in front of witnesses.
• Get a signed receipt for every payment: deposit, advance rent and commission. Later, keep a receipt or transfer record for each month's rent.
• Note the meter readings on the day you take the keys, and photograph them.

Red flags

• The owner is "abroad" and everything must be done by phone, with money sent first.
• You are asked for a token to hold the property or to "take the ad down".
• Nobody can show ownership proof, or the name on the papers is someone you are not allowed to contact.
• The rent is far below similar homes on the same street.
• You are rushed: "another family is coming with cash this evening".
• The landlord refuses a written agreement or a receipt for the deposit.

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On moving day

Have in hand: the signed agreement, every receipt, copies of the owner's CNIC and ownership proof, the inventory with dated photos, the meter readings, all sets of keys and the police registration acknowledgement.

Renting is a relationship that may last years. Starting it with clear paper is not distrust; it is how both sides stay on good terms. Browse property on BUY.net.pk, and read the property section of our safety center first.