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New Sharjah rental law caps rent increases, changes eviction rules
The new law also defines key reasons landlords can ask tenants to vacate the leased property
A new rental law announced on Monday mandates that landlords in Sharjah must ratify contracts within 15 days of issuance. The law also places limits on rent increases and outlines specific reasons under which a tenancy contract may be terminated.
Under the law, landlords cannot increase the rent until three years have passed from the start of the rental agreement, unless both parties mutually agree to a change.
If a tenant accepts a rent increase within that three-year period, the landlord cannot raise the rent again for another two years. After the initial period, any rent increase must reflect the fair rent value, as determined by the law's executive regulations, which will outline how to calculate this fair rent. Additionally, the governing council may amend these time frames through a formal decision.
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The new law also addresses the conditions under which a landlord may evict a tenant from the leased property. Additionally, it defines the circumstances in which both parties can mutually agree to terminate their rental contract.
The law issued by by Sheikh Dr Sultan bin Muhammad Al Qasimi, Ruler of Sharjah and Member of the Supreme Council addresses the specifies for eviction as follows:
1. The landlord cannot request the tenant to vacate the leased property before the expiry of 3 years from the date of the start of the rental contract for residential use and 5 years for commercial, industrial or professional use, unless one of the following reasons is available:
- A. If the tenant does not pay the rent or any instalment thereof within 15 days from the due date.
- B. The tenant’s violation of any of his legal or contractual obligations and failure to remove the violation within 30 days from the date of notification by the landlord.
- C. If the tenant assigns all or part of the lease contract or re-rents all or part of the leased property in violation of the provisions of this law and its executive regulations, without prejudice to the provisions of the transfer of ownership of the commercial premises stipulated by law.
- D. If the tenant uses the rented property or allows others to use it for a purpose other than that specified in the lease contract or in violation of its terms or uses it for purposes that conflict with public order or public morals.
- E. If the landlord wishes to demolish the rented property, rebuild it, or carry out comprehensive maintenance that makes it impossible for the tenant to be present in the property, in accordance with the conditions specified in the executive regulations of this law.
Meanwhile, if the landlord wishes to occupy the rented property for the purpose of residence for himself or one of his first-degree adult relatives, provided that the following occurs:
- A. He shall not own another property suitable for housing within the municipality’s jurisdiction.
- B. Notifying the tenant of the eviction request within a period of not less than three months from the date set for the eviction.
- C. That the landlord himself or one of his first-degree adult relatives actually occupy the leased property within two months after it has been vacated by the tenant and for a period of one year without interruption.
2. If the landlord does not comply with the conditions set forth in paragraph E of this article, the tenant shall have the right to claim compensation for the damage he suffered as a result of the eviction before the centre.
The law states that if the landlord refuses to accept the rent payments or does not specify a location for payment, the tenant can deposit the rent or instalment with the designated centre, as long as he/she follows the guidelines in the law's executive regulations. In case the landlord or and tenant haven't agreed on the method or date of payment, or if proving such an agreement is difficult, rent will be paid in four equal instalments spread throughout the lease term.
The new law also defines the termination of the rental relationship as follows:
- The rental relationship shall not end and the tenant shall not be harmed by the transfer of ownership of the leased property to a new owner, regardless of the method or reason for its transfer.
- The new landlord may not request the tenant to vacate the leased property or increase its rent except in accordance with the provisions of this law and its executive regulations.
- The new lessor replaces the previous lessor in all rights and obligations of the lease contract.
According to the law, the rental agreement does not automatically end if one of the parties dies, except when the tenant is the one that died and his/her heirs request to terminate the contract. 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 that unexpected or exceptional circumstances have made it difficult to fulfil their obligations. If the landlord refuses this request, the tenant can take the matter to the relevant authority, which will then evaluate the situation.
If the contract is terminated early, the tenant must pay the landlord with at least 30 per cent of the rent for the remaining contract term, unless both parties agree to a different arrangement.
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