Sharjah’s new rental law shields tenants from eviction, rent hikes for first 3 years

Sharjah has introduced a comprehensive new rental law aimed at establishing clearer guidelines for both landlords and tenants, ensuring fair practices and enhanced protection. The law, announced on Monday and issued by Sheikh Dr. Sultan bin Muhammad Al Qasimi, Ruler of Sharjah and Member of the Supreme Council, outlines several critical provisions related to eviction, rent increases and other key aspects of rental agreements.

Key Provisions of the Law:

1. Landlords are required to ratify rental contracts within 15 days of issuance. This ensures a timely and formalized rental agreement, bringing transparency to the process.

2. One of the significant aspects of the new law is the restriction on rent increases. Landlords are prohibited from increasing the rent for the first three years of the rental agreement unless both the landlord and tenant mutually agree to a change. If a tenant agrees to a rent increase within this period, the landlord cannot raise the rent again for another two years.

After the initial three-year period, any rent increase must reflect the fair market value, as outlined in the law's executive regulations. The governing council may also revise these timeframes through formal decisions, providing flexibility in the future.

3. The new law introduces strict regulations regarding tenant eviction. Landlords cannot evict tenants before the expiration of 3 years for residential properties and 5 years for commercial, industrial, or professional properties. Previously, landlords could request tenants to vacate with a three-month notice, subject to permission from Sharjah Municipality.

However, landlords may evict tenants under certain conditions:

Non-payment of Rent: If the tenant fails to pay rent or any instalment within 15 days of the due date.

Violation of Obligations: If the tenant breaches legal or contractual obligations and does not rectify the violation within 30 days of being notified.

Illegal Subletting: If the tenant subleases the property or assigns the lease without complying with the law.

- Improper Use of Property: If the tenant uses the property for purposes other than those specified in the contract or in violation of public order or morals.

- Landlord’s Renovation or Demolition: If the landlord intends to demolish, rebuild, or perform major maintenance that makes the property uninhabitable, subject to conditions in the executive regulations.

A landlord may also request eviction if they plan to occupy the property themselves or for a first-degree adult relative. Specific conditions apply:

- The landlord must not own another suitable property within the municipality's jurisdiction.

- The tenant must be given at least three months' notice before the eviction.

- The landlord or relative must occupy the property within two months of the tenant vacating and remain for at least one uninterrupted year.

If these conditions are not met, the tenant has the right to claim compensation for any damages suffered as a result of early eviction.

If the landlord refuses to accept rent payments or does not designate a payment location, tenants can deposit the rent with a designated centre as specified by the law’s executive regulations. If no agreement is reached on the payment method or dates, the rent will be paid in four equal instalments spread over the lease term.