Rent rules in Abu Dhabi

 
Two-month notice must for rent increase in Abu Dhabi


Q: I'm living in a flat in Abu Dhabi for which contract renewal is coming up. Until this moment, I haven't got any increase notice from my landlord. I'd like to ask whether rent can be increased at the time of renewal without notice? Or is there a mandatory notice period that must be given before any rent increase?

A: Law No. 20 of 2006 of the Emirate of Abu Dhabi regulates the relationship between the landlord and tenant (the "Rent Law") which is further amended by Law No. 4 of 2010 of Abu Dhabi (the 'Amended Rent Law').

The landlord can increase the rent up to five per cent by serving two months' notice before expiry of the tenancy term. Article 20 (1) of the Rent Law states: "Tenancy contract shall remain valid until end of the period specified. It may be renewed for identical period(s) unless either party declares willingness in writing to evacuate the subject of contract.

For residential places, declaration shall be made in writing two months before the contract date of expiry".

Amended Rent Law states that the landlord has legal rights to ask a tenant to vacate upon expiry of tenancy contract and could reject renewal but with the 'Notice of Eviction' as specified in the said law which is two months' notice for residential properties. In the case the landlord does not provide any notice of eviction or rent hike within the period mentioned above, the rental contract may be renewed on the same terms and amount. (KT)

If landlord increases rent illegally, approach Rent Dispute Committee


Q:
We have been staying in Abu Shagara, Sharjah, for the last four years. We started at Dh25,000 per annum for a two-bedroom apartment, including parking charges of Dh2,000. Every year, our landlord increased the parking charges by Dh1,000. At the end of three yeas, our rent was hiked to Dh28,000, and now we are paying Dh34,000. Soon, we are expecting the rent to be between Dh43,000 to Dh45,000.
If we go to Sharjah Municipality's Rent Dispute Committee, will we get some justice?

A: It may be noted that, in accordance with the notification of the Sharjah Municipality, a landlord may increase the rent of a leased property only after completion of three years from the date of the commencement of the tenancy/lease contract.

Thereafter, any further increase in rent may be effected at the end of two years. You may, therefore, try to prevail upon your landlord not to increase the rent this year, as he had already done so last year. Further, it is learnt that the Sharjah Municipality has a Rent Dispute Committee that acts as the forum for addressing all disputes relating to rental between landlords and tenants.

All disputes pertaining to rents of leased properties must be filed with the Rent Dispute Committee. In view of the above-mentioned conditions, it may be advised that if your landlord refuses to accept your request for a reprieve this year, or if there is no amicable settlement between you and your landlord on the issue of rent, you may consider approaching the Rent Dispute Committee of Sharjah Municipality. (KT)

Q:
I understand that at the time of renewing a flat, I should pay not more than Dh260 for renewal. The agent at International City asked me for Dh1,000 to Dh1,500 to renew the contract. I stayed for one year and the agent is asking me paint the studio apartment or pay Dh250. I went to the police station whereby I have been told to pay Dh150 for the painting. Is this rule applicable in Dubai?

A: As a general rule, a tenancy contract should be renewed on the same terms and conditions unless the parties to the contract otherwise agree. If the parties do not agree, the increase must be approved by the Rent Committee. A landlord/agent cannot increase the rent or related expenses without obtaining a verdict from the Rent Committee.

Furthermore, on one hand, while the law imposes an obligation upon the landlord to hand over the property in good condition, on the other hand, the law obliges the tenant to take care of the leased property. No person, including the agent or landlord, is allowed to impose a fine or decide the value of damage without obtaining a valid verdict from the Rent Committee. If the condition of the paint is normal and comes under normal wear and tear, it is the landlord’s responsibility. Otherwise, it will be your responsibility.

It is worthy to note here that in case of dispute between you and the landlord regarding its condition, the dispute should be referred to the Rent Committee.

Abu Dhabi Municipality
Al Ain Municipality
Sharjah Municipality
Ajman Land and Property Department
Fujairah Municipality
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