A new rental law was announced on Monday, mandating that landlords in Sharjah must ratify contracts within 15 days of issuance. According to the law, landlords are prohibited from increasing rents until three years have elapsed since the start of the rental agreement, unless both parties mutually agree to a change. If a tenant agrees to a rent increase within this three-year period, the landlord cannot raise the rent again for another two years. Post the initial period, any rent increase must align with the fair rent value, as stipulated by the law's executive regulations, which will detail the method for calculating this fair rent. Additionally, the governing council reserves the right to amend these timeframes through a formal decision.
The new law also outlines the conditions under which a landlord may evict a tenant and the circumstances in which they can mutually terminate their contract. The law, issued by Sheikh Dr Sultan bin Muhammad Al Qasimi, Ruler of Sharjah and Member of the Supreme Council, specifies the reasons for eviction as follows: The landlord cannot request the tenant to vacate the leased property before the expiry of three years from the start of the rental relationship for residential use and five years for commercial, industrial, or professional use, unless one of the specified reasons is present. These reasons include non-payment of rent, violation of legal or contractual obligations, unauthorized subletting, misuse of the property, and necessary property demolition or maintenance.
Furthermore, if the landlord wishes to occupy the rented property for residence, certain conditions must be met, such as not owning another suitable property within the municipality's jurisdiction and providing adequate notice to the tenant. If the landlord fails to comply with these conditions, the tenant has the right to claim compensation for damages suffered due to the eviction.
The law also addresses rent payment issues, stating that if the landlord refuses to accept rent payments or does not specify a payment location, the tenant can deposit the rent with the designated centre, following the guidelines in the law's executive regulations. If no agreement on payment method or date is reached, rent will be paid in four equal instalments throughout the lease term.
The new law defines the termination of the rental relationship, stating that the rental agreement does not automatically end upon the death of one party, except when the tenant dies and their heirs request termination. In such cases, the contract can only be terminated 30 days after the landlord is notified or when the contract naturally expires, whichever comes first. For fixed-term rental contracts, a tenant may request early termination if they can prove unexpected or exceptional circumstances make it difficult to fulfil their obligations. If the landlord refuses this request, the tenant can seek recourse from the relevant authority, which will evaluate the situation. If the contract is terminated early, the tenant must pay the landlord at least 30% of the rent for the remaining contract term, unless both parties agree to a different arrangement.
