Sharjah: A new rental law was announced in Sharjah on Monday, which further sets the rights and duties of tenants and landlords.
His Highness Sheikh Dr Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, issued Law No. 5 of 2024 on Property Leasing in the Emirate of Sharjah.
The provisions of this law apply to properties leased for residential, commercial, industrial, or professional purposes.
Contract certification
The landlord will be required to pay the certification fees for the lease contract. The law stipulates the certification of lease contracts as follows:
1- The landlord is required to certify the lease contract or any renewal of its duration and to pay the applicable fees to the municipality or the authorised entities within 15 days from the date of its drafting.
2- If the landlord refuses to certify the lease contract within the time frame specified, the tenant must request that the emergency judge at the Rental Disputes Centre compel the landlord to certify it.
3- Except for the centre, government entities in the emirate shall refuse to accept any unverified lease contract in accordance with the provisions of this law and its executive regulations in any transaction or service they provide.
According to the law, either party in the rental relationship, in the absence of a certified lease contract, may file a claim with the Rental Disputes Centre in the Emirate of Sharjah – which was also announced on Monday – to establish the rental relationship and its resulting effects using all forms of evidence provided for in the applicable legislation.
Rent increases
According to the law, the lessor may not increase the agreed upon rent before the expiry of three years from the date of the start of the rental relationship, unless the parties to the rental contract agree otherwise. If the lessee accepts an increase in the rent before the expiry of the three years, the lessor may not increase it again until two years have passed from the date of the increase. The increase in the rent after the expiry of the periods referred to in Clause 1 of this article of the law shall be at the value of the fair rent. The executive regulations of this law shall specify the controls for the fair rent and how to calculate it.
Terminating the lease contract
If the lease contract is for a fixed term, the tenant may request its termination before the expiry of its term, if he proves the existence of exceptional and unexpected circumstances that would make the implementation of his obligations burdensome. If the landlord rejects the tenant’s request to terminate the lease contract before the expiry of its term, the tenant may resort to the centre, and the centre has the authority to assess the tenant’s request for termination.
The tenant is obligated to pay compensation to the landlord at a rate of 30 per cent as a minimum of the rent for the remaining term of the lease contract, unless the two parties agree otherwise.
Landlord’s obligations
• Carrying out necessary maintenance on the leased property unless otherwise agreed by the parties to the lease contract.
• Not making changes to the leased property that would prevent or diminish its enjoyment without written permission from the tenant.
• If the landlord fails to carry out the necessary maintenance, the tenant may conduct this maintenance at their own expense, with the right to claim a deduction for the costs incurred for the essential maintenance from the rent.
• Not interfering personally or through others with the tenant in a manner intended to disturb them or pressure them to vacate the leased property, or depriving them of full enjoyment of its appurtenances, or cutting off or disconnecting services to it or to the property in which it is located.
• Returning any financial guarantees previously provided by the tenant upon the termination of the rental relationship unless they have been wholly or partially deducted for damages caused by the tenant to the leased property that do not fall under normal use.
• If the landlord fails to carry out the necessary maintenance, the tenant may conduct this maintenance at their own expense, with the right to claim a deduction for the costs incurred for the essential maintenance from the rent.
Tenant’s obligations
1- Paying the rent on the due dates or as agreed upon in writing.
2- Using the leased property as agreed in the lease contract.
3- Not making any changes or modifications to the leased property without obtaining written permission from the landlord and the necessary licenses from the relevant authorities.
4- Leaving any plantings, constructions, or improvements made to the leased property after the lease term ends, which would cause damage if removed, unless otherwise agreed by the parties to the lease contract.
5- Paying for the consumption of services and any damages caused to the leased property, as well as any other fees legally required to be paid, from the date of receiving the leased property until the date of handing it back to the landlord.
Reasons for eviction
The landlord may not request the tenant to vacate the leased property before the expiry of three years from the date of commencement of the lease relationship for residential use, unless one of the following reasons arise:
A. If the tenant fails to pay the rent or any instalment thereof within 15 days from the date it is due.
B. The tenant violates any of his legal or contractual obligations and does not 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 the present law and its executive regulations
D. If the tenant uses the leased 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 leased property or rebuild it or carry out comprehensive maintenance that prevents the tenant from being present in the property in accordance with the conditions specified in the executive regulations of this law.
F. If the landlord wishes to occupy the leased property for the purpose of housing for himself or one of his first-degree adult relatives, provided that:
• He does not own another property suitable for housing in the area of the municipality’s jurisdiction.
• Notify the tenant of the eviction request within a period of not less than three months from the date set for eviction.
• The landlord himself or one of his first-degree adult relatives shall occupy the leased property within two months after it has been vacated by the tenant for a period of one year without interruption.
Rental Disputes Centre
Also on Monday, it was announced that Sheikh Sultan has issued Law No. 6 of 2024 on the establishment and organisation of the Rental Disputes Centre (RDC) in the Emirate of Sharjah.
This centre will be affiliated with the Sharjah Municipality, and its main headquarters will be in the city of Sharjah.
According to the law, the center is tasked with reviewing and resolving disputes arising from rental relationships and their effects, including bounced checks, compensation requests, and related real estate mediation in the emirate or in free zones, except for those with special committees or judicial bodies responsible for resolving rental disputes within their boundaries.
The law stipulates that the center will consist of the following departments:
1- Primary Courts.
2- Appellate Courts.
3- Enforcement Department.
