The new rental law in Sharjah introduced by Sheikh Dr Sultan bin Muhammad Al Qasimi, Ruler of Sharjah and Member of the Supreme Council, imposes certain conditions on landlords. The law requires landlords to ratify rental contracts within 15 days of issuance and sets regulations for the eviction of tenants from leased properties. Landlords are now prohibited from requesting tenants to vacate the property before three years for residential use and five years for commercial, industrial, or professional use.
The law specifies the circumstances under which a landlord can terminate a rental contract. These include non-payment of rent, violation of legal or contractual obligations, unauthorized assignment or subletting of the property, improper use of the property, or the need for demolition, reconstruction, or extensive maintenance. If a landlord wishes to occupy the property for personal use, certain conditions must be met, such as notifying the tenant three months in advance and actually residing in the property for at least one year.
If a landlord fails to comply with the conditions set forth in the law, the tenant has the right to claim compensation for any damages resulting from the eviction. The law also addresses payment procedures, allowing tenants to deposit rent with a designated center in case the landlord refuses to accept payments. In the absence of an agreement between the parties, rent must be paid in four equal installments spread throughout the lease term.
Regarding the termination of the rental relationship, the law ensures that tenants are protected in the event of a change in ownership of the property. The new landlord assumes all rights and obligations of the lease contract, and the rental agreement remains valid even if one of the parties dies. However, in the event of the tenant’s death, the contract can be terminated upon notification to the landlord.
In cases of fixed-term rental contracts, tenants can request early termination due to unexpected or exceptional circumstances. If the landlord rejects the request, the matter can be escalated to the relevant authority for evaluation. If the contract is terminated early, the tenant may be required to pay at least 30% of the rent for the remaining contract term, unless both parties agree to a different arrangement.
Rent increase is also regulated under the new law, ensuring that landlords cannot raise rent until three years have passed from the start of the rental agreement. Any rent increase must reflect the fair rent value as determined by the law’s executive regulations. If both parties agree to a rent increase within the initial three-year period, the landlord cannot raise the rent again for another two years. The governing council may amend these time frames through a formal decision in the future.
