1. Payment of Rent and Security Deposit
The tenant is required to pay the monthly rent in advance. Consequently, the landlord must provide a written receipt. Additionally, the Security Deposit (Advance) must be refunded by the landlord upon vacating, provided the property is returned in its original condition.
2. Mandatory Registration of the Rent Agreement
According to the law, the responsibility of registering the Rent Lease Agreement with the local Rent Registrar falls on the landlord, though expenses are often shared or covered by the tenant as per mutual contract. A non-registered agreement can lead to heavy penalties if a dispute reaches the court.
3. Utility Bills and Maintenance
While the landlord is responsible for property tax and structural repairs, the tenant must manage the following:
Utility Bills: Timely payment of electricity, gas, and water supply.
Minor Repairs: Maintenance of water motors, electrical wiring, and internal fittings.
Usage: The property must be used only for the purpose (Residential or Commercial) specified in the Rent Lease Deed.
4. Notice Period and Eviction
Either party must provide a two-month notice before terminating the tenancy. However, if the tenant violates the terms or fails to pay rent, the landlord has the right to seek eviction through the Rent Controller. Furthermore, an annual rent increase (usually 10%) should be clearly mentioned to avoid future friction.
Why a Written Rent Agreement is Crucial
For both landlords and tenants, a verbal agreement holds no weight in the eyes of the Punjab Rental Act. A written Rent Lease Deed ensures:
Protection Against Overcharging: Prevents arbitrary rent hikes.
Recovery of Possession: Helps landlords get their property back through legal means.
Utility Clearance: Ensures the tenant doesn’t leave behind unpaid bills. Rent Lease Deed.
