A new rental law, issued by Sheikh Dr. Sultan bin Muhammad Al Qasimi, Ruler of Sharjah and Member of the Supreme Council, introduces enhanced protections for tenants and a structured framework for landlords. The new law sets clear rules for rental contracts, eviction conditions, and rent increases. It requires landlords to ratify rental contracts within 15 days of issuance, ensuring both parties are legally bound by the terms in a timely manner.

One of the significant changes under the new law is the protection against premature evictions. For residential properties, landlords cannot evict tenants within the first three years of the lease, and for commercial, industrial, or professional properties, the restriction extends to five years. Previously, landlords could issue eviction notices after receiving permission from the Sharjah Municipality, often with just three months’ notice. However, the new law outlines specific exceptions under which eviction can occur for the following reasons:

a)      Non-payment of rent or instalments within 15 days of the due date.

b)      Violation of legal or contractual obligations, with the tenant failing to rectify within 30 days of notification.

c)      Unauthorized transfer or subleasing of the property.

d)      Use of the property for purposes other than those stipulated in the contract or in violation of public order or morals.

e)      Demolition, rebuilding, or maintenance that prevents tenant occupancy.

Landlords may also seek eviction if they wish to demolish or rebuild the property or if they need the property for personal use, provided they meet strict conditions, including a three-month notice and proof of need.

In addition to eviction rules, the law outlines measures to protect tenants in case of ownership transfer. A change in ownership does not terminate the rental agreement, and the new landlord cannot request the tenant to vacate or raise rent without complying with the law’s provisions. Furthermore, if a tenant wishes to terminate the contract early due to exceptional circumstances, they may do so by following a legal procedure, with a potential penalty of 30% of the remaining rent term unless an alternative agreement is reached.

Rent increases are also regulated under the new law. Landlords are prohibited from raising rent during the first three years of the contract unless both parties agree to a modification. After this period, any increase must reflect fair market value as determined by the law’s executive regulations. Additionally, rent cannot be increased again for two years following any accepted raise, ensuring tenants are not burdened by frequent hikes.

This comprehensive legislation enhances protections for both tenants and landlords by setting clear guidelines on evictions, rent payments, and contractual obligations. With these reforms, Sharjah aims to promote a balanced and fair rental market, ensuring the rights of both parties are preserved while fostering a stable environment for residential and commercial rentals.