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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