Renting a House in Lahore: What to Know Before You Sign

Most Lahore tenants find a house through a dealer's WhatsApp forward, agree the rent over a phone call, sign a one page stamp paper, and only learn about the rules when something goes wrong. That is the wrong order. The Punjab Rented Premises Act 2009 sets out exactly how a tenancy should work, the police want to know who is living where, and the market has pricing patterns that are worth understanding before you commit to a year.

This guide covers the pieces that matter: what houses and apartments are actually asking right now, what a proper rent agreement contains, your legal rights and obligations, and the costs and taxes nobody mentions during the viewing.

Reviewed by Shakir Estate. Last updated: 18 October 2026. All rent figures below are asking rents from current listings, not confirmed deals.

The short version

• A 5 marla house in a developed DHA or Bahria block typically asks Rs 60,000 to 1.2 lakh a month; 10 marla runs Rs 1.3 lakh to 2.5 lakh; 1 kanal runs Rs 2 lakh to 4.8 lakh. These are opening asks, and location inside the society moves the number more than the plot size.
• Under the Punjab Rented Premises Act 2009, the tenancy must be in writing, presented to the Rent Registrar, and spell out the rent, the duration, and who pays for what.
• The landlord must inform the police about the tenant within 15 days of possession. This is a legal requirement with real penalties, not a formality.
• Standard practice at signing is one to three months' rent as a refundable security deposit plus one month's advance rent. The agreement should state the deposit amount and the refund terms in writing.

What houses are asking in Lahore right now

Rent ranges below come from listings current in October 2026, mostly from Zameen, Lamudi, OLX and published market guides. Read them as the market's opening position. Two houses on the same street can differ by 30 per cent because of corner position, renovation, or whether it is an upper or lower portion.

5 marla houses

10 marla houses

1 kanal houses

Apartments

Furnished units command a sharp premium. Current listings show furnished 1 bed flats in Gulberg at around Rs 1.75 lakh and furnished units in DHA Phase 5 at Rs 1.3 lakh to 1.7 lakh a month. If a listing says furnished, inventory every item in the agreement.

One more note on data quality. Many aggregate tables published by portals lag the market or mix older readings with fresh ones. A Graana trend table still shows DHA 11 Rahbar 5 marla at Rs 55,000 to 68,000 while fresh Zameen cards list Rs 85,000 to 1.12 lakh. Trust dated, current listings over trend tables.

The rent agreement: what the law requires

The Punjab Rented Premises Act 2009 is the governing law, and its requirements are simple enough that there is no excuse for skipping them.

The agreement must be in writing. Section 4 to 6 require a written tenancy agreement presented to the Rent Registrar for registration. It must record the parties, the property description, the tenancy duration, the rent rate, how the rent increases, the due date and payment mode, the landlord's bank account, the purpose of the tenancy, and any advance, security or pagri paid.

Get a certified copy. Section 12 obliges the landlord to provide the tenant a certified copy of the agreement. Keep it somewhere safe. If a dispute ever reaches the Rent Tribunal, an unregistered agreement can still be heard, but the party without proper paperwork pays a fine, 5 per cent of the annual rent value for the tenant and 10 per cent for the landlord.

A good agreement also answers these questions explicitly, because the statute leaves them to the parties:

• Exact duration and the notice period for ending it early
• The security deposit amount and the conditions for its refund
• Who pays for maintenance, and where the line sits between normal wear and damage
• Whether subletting is allowed (it requires the landlord's prior written consent under Section 11)
• What happens to utilities, and who clears outstanding dues before handover

Your rights and obligations as a tenant

Under the Act, the landlord must pay all taxes and fees on the premises, cannot cut off or suspend utilities without just cause, and cannot enter the house without reasonable notice. If the landlord defaults, the tenant can apply to the Rent Tribunal.

The tenant, in turn, must keep the premises in the condition it was let in (normal wear excepted), use it only for the agreed purpose, allow the landlord entry for inspection or repair, avoid nuisance, and hand over vacant possession when the tenancy ends. No structural change is allowed without the landlord's prior written consent.

Eviction is not at the landlord's discretion. Section 15 lists the only grounds: the tenancy period has expired, rent went unpaid for more than 30 days after the due period, a term of the agreement was breached, a tenant obligation was violated, the premises are used for a different purpose, or subletting happened without written consent. Lockouts, forced entry and utility disconnection as pressure tactics are unlawful, and each district has a Rent Tribunal to hear these disputes.

The police registration rule almost everyone skips

Under the Punjab Information of Temporary Residents Act 2015, the landlord, the tenant, or the property dealer must inform the police within 15 days of the tenant taking possession. One of them doing it discharges the others. It is free, takes about 15 to 20 minutes at a police station or Police Khidmat Markaz, and you will need both parties' CNICs, the rent agreement, an affidavit and the tenant's photograph.

The penalty for skipping it runs up to six months' imprisonment and a fine of Rs 10,000 to 100,000. This applies to houses, flats, portions, rooms and sub tenants. If your dealer tells you it is not necessary, that is not their call to make.

Costs and taxes at the signing table

Security deposit. Market practice in Lahore is one to three months' rent as a refundable security deposit, usually with one month's advance rent paid alongside it. There is no statutory cap on the deposit in the Act, so whatever you agree should be written down, with the refund terms and permissible deductions stated.

Stamp duty. The statutory position under the Stamp Act 1899 as applicable in Punjab (Article 35, substituted by the Stamp (Amendment) Act 2021) is 3.25 per cent of the average annual rent for a lease with fixed rent and no premium, for terms under 20 years. Note that some published guides quote different schedules, and in practice residential agreements are often executed on low denomination e stamp paper and left unregistered, so the ad valorem duty is rarely actually paid. Get the agreement's duty position clarified at the Sub Registrar rather than trusting a blog table, including this one. The Act does not fix which party pays; it is negotiated.

The disputed 16 per cent GST on rents. In June 2026, press reports said the Punjab budget imposed a 16 per cent sales tax on rented properties from 1 July 2026, with several reports explicitly mentioning smaller rented houses, and the property dealers association demanded its withdrawal. However, the underlying Punjab Sales Tax on Services Act's negative list expressly exempts "renting of personal dwellings for residential use." Its enforceability on residential rents is disputed, and there is no verified evidence it is actually being collected on home rents as of October 2026. If your landlord's agreement includes a tax pass through clause, ask which law it refers to and consider professional advice. This is one to watch, not one to assume.

Withholding tax on the rent. Under Section 155 of the Income Tax Ordinance, only prescribed persons must withhold tax on rent: government bodies, companies, private educational institutions, hospitals, beauty parlours and similar establishments, and individuals or associations paying gross rent of Rs 1.5 million or more a year, which works out to Rs 125,000 a month. An ordinary family renting a home deducts nothing. So for most residential tenants this is the landlord's matter, not yours. If you are renting through a company, the individual slabs for 2026-27 run from nil up to Rs 300,000 of annual rent, then 5 per cent of the excess to Rs 600,000, Rs 15,000 plus 10 per cent to Rs 2 million, and Rs 155,000 plus 25 per cent above that, with companies at a flat 15 per cent. Our Pakistan property tax guide lays out the full structure.

Renting as an overseas Pakistani

If you are arranging a rental from abroad, the standard route is a power of attorney attested through the Pakistani mission in your country, and the registration and police reporting still happen in Lahore. Have someone local inspect the property and photograph the meters, the fittings and any existing damage before the agreement is signed, because condition disputes are much harder to settle from a distance. Our guide to buying property as an overseas Pakistani covers the documentation habits that apply to rentals too.

The viewing checklist that prevents most disputes

Before you agree to anything, walk the property with this list:

• Run every tap, flush every toilet, and check water pressure on the top floor
• Photograph the meter readings and every existing mark, crack or stain
• Ask whether the society charges are current, and who clears the dues
• Confirm parking, and for portions, which part of the house is actually yours
• Check mobile signal and, if you work from home, ask the neighbours about load shedding patterns
• Meet or at least speak with the actual owner, not just the dealer

A dealer who discourages a second viewing or a lawyer's read of the agreement is telling you something. For apartment hunters specifically, our guide to buying an apartment in Lahore has a separate checklist for building level checks, and the maintenance section applies to renters too.

Frequently asked questions

How much security deposit is normal in Lahore?

One to three months' rent, refundable at the end of the tenancy minus lawful deductions like damage beyond normal wear or unpaid bills. Most tenancies also collect one month's advance rent at signing. Get both in writing.

Is a verbal rent agreement valid in Punjab?

The Punjab Rented Premises Act 2009 requires the tenancy to be in writing and presented to the Rent Registrar. A verbal arrangement leaves both sides exposed, and an unregistered agreement draws a fine if it ever reaches the Tribunal.

Can my landlord increase the rent whenever they want?

Only as the agreement allows. This is why the increase clause belongs in the contract from day one. Without it, any increase becomes a negotiation, and a bad one.

Can the landlord evict me before the agreement ends?

Only on the grounds in Section 15: expiry of the term, rent unpaid beyond 30 days after the due period, breach of an agreement term, violation of tenant obligations, a different use of the premises, or unauthorized subletting. Lockouts and utility cutoffs as pressure tactics are unlawful.

Do I need to register with the police as a tenant?

The landlord, you, or the dealer must inform the police within 15 days of you taking possession under the Punjab Information of Temporary Residents Act 2015. Skipping it carries penalties for the party who was supposed to report.

Does the tenant pay withholding tax on rent?

Only if the tenant is a prescribed person, typically a company or someone paying Rs 125,000 or more a month in rent. Ordinary household tenants deduct nothing.

Rent with the paperwork, not just the keys

The Lahore rental market rewards tenants who slow down at the paperwork stage. A written agreement, a registered copy, a police report filed within 15 days, and a viewing where you photograph everything cost almost nothing and prevent the disputes that cost real money. Rents are negotiable; your legal position should not be.

If you are comparing areas or trying to sense whether a quoted rent is fair for a specific block, talk to us first. Investors measuring rent against purchase price can also work through the math in our Lahore rental yield guide.

Looking to rent in Lahore? Shakir Estate helps tenants compare suitable options by area, budget and property type, and we will tell you honestly when a quoted rent is out of line with the street it sits on. Message us on WhatsApp at +92 300 4630499.