Investment Analysis
Rental Agreement Essentials for Lahore Landlords
A handshake and a one-page agreement are how most Lahore landlords operate — and how they lose rent, deposits, and sometimes their property. A proper rental agreement is not aggression; it is clarity. This guide covers the clauses every landlord needs.
Security deposit and advance rent
Standard practice is two months' security deposit plus one month advance rent. The deposit is held against damage and unpaid utilities; it is not last month's rent. State this explicitly in the agreement.
Annual escalation and maintenance
A 5–10% annual rent escalation is standard and should be written in, not assumed. Maintenance responsibility splits are the most common dispute — clarify who pays for what before the tenant moves in.
Exit clauses and notice periods
Both parties need a clear notice period — typically two months for residential and three months for commercial. Define what constitutes breach, and the process for eviction without escalation.