Real estate laws and regulations play an important role in sustaining property value in any area and making it an ideal place to buy or rent properties. The Abu Dhabi tenancy laws make the capital and ideal place for those looking for a rental home in the Emirate. Through these laws, the rights and duties of individuals are defined as well as protected. Let us take you through what it means to live on rent in the capital and all about tenancy law in Abu Dhabi.
TENANTS RIGHTS AND TENANCY LAW IN ABU DHABI
The following guidelines will help you understand the Abu Dhabi tenancy law.
Registration
According to The Abu Dhabi Executive Council No. 4 of 2011, landlords are required to register properties and effective tenancy contracts with the Abu Dhabi Municipality, ADM. A modern electronic system known as Tawtheeq is used by ADM to keep a record of tenancy contracts and the data pertaining to the property being leased.
In 2011, the Tawtheeq system was mandated in the capital to effectively regulate the tenancy system in Abu Dhabi, much like the Ejari system followed in Dubai.
Arabic and English are the only languages used for Abu Dhabi tenancy contract registration through the Tawtheeq system. If the Abu Dhabi tenancy contract is not drafted in any of these languages, it will not be accepted in the Tawtheeq registry system.
In accordance with Administrative Resolution No. 97 of 2012, the registration process of lease contracts is further standardised. According to the resolution, it is mandatory for ADM to formulate a record of Abu Dhabi tenancy contract registration containing:
- Data pertaining to property (it has to be mentioned clearly if the property is residential, commercial or industrial)
- Landlord details and information
- Tenant details and information
According to the Abu Dhabi tenancy law, it is compulsory for landlords to register their properties and subsequent tenancy contracts with the Abu Dhabi Municipality. Moreover, for their own safety, tenants should always ask for the property registration certificate and read it thoroughly before deciding to rent any space in Abu Dhabi.
Abu Dhabi Rent Caps
The Abu Dhabi Tenancy Law was first altered in 2010 with Abu Dhabi Law No. 4.
According to the law, the annual rental price increases were capped at 5% – which means at the time of lease renewal, tenants could face a rental increase of up to 5%.
Later in 2012, the Abu Dhabi Executive Council issued law no. 32. This law removed the rental price cap, thereby allowing landlords to raise property prices as per the market rates. However, landlords were required to provide two months of notice to their tenants, clearly stating the altered or revised price.
In 2016, the Abu Dhabi Council restored the 5% rental cap on a lease agreement with Resolution No. 14 of 2016. Under this law, landlords and tenants can decide on the rent before entering a lease agreement. Again, just like in 2010 and 2016, the landlord had the authority to increase the annual rent price within the set cap.
As of now, the Abu Dhabi tenancy law states that a 5% rental cap applies to all leased properties of the capital. Landlords and property management companies can raise annual rent within this limit. Tenants must be notified at least two months prior to the contract renewal.
Tenant Notice Period
According to Law No. 4 of 2010, landlords are entitled to evict tenants upon the expiry of the tenancy contract. This tenancy law also enables landlords to refuse the renewal of the tenancy contract if they don’t feel like renewing it.
However, according to Abu Dhabi Executive Council Law No. 32, just like increasing the annual rent, landlords have to give tenants two months’ notice prior to the contract renewal by issuing an evacuation or eviction notice.
As per the standard Abu Dhabi tenant eviction procedure, both parties (landlords and tenants) have to serve this notice period.
Under the Abu Dhabi tenancy law, landlords and property management companies in the Emirate also have to give tenants 2 months’ notice if they want to make any amendments to the tenancy contract.
In short, the two months’ notice has to be given in case of a rent increase, tenant eviction or when making any alterations to the tenancy contract terms.
GUIDELINES FOR OCCUPANCY IN ABU DHABI RESIDENTIAL UNITS
Certain guidelines were established under Administrative Resolution No. 12 of 2012 pertaining to the occupancy of residential units in Abu Dhabi.
Those planning to live on rent in the city need to take care of the following restrictions:
- The total area of the villa or apartment defines the number of occupants. Each occupant should be allocated an area of no less than 14 sq. m (this excludes children and housemaids.)
- Occupants are not allowed to use the corridor or hall area space of residential units as bedrooms
- Landlords are not allowed to divide a residential unit to lease the divided area to another tenant separately. If a landlord plans to do so they need to get special permission
- Only three occupants can stay in a single room simultaneously (this excludes children and housemaids)
- One residential unit can only be occupied by one family, more than one family cannot share a single residential unit
- Families occupying a single residential unit are not allowed to share their space with anyone who is not related to the family (excluding children and housemaids)
Please be mindful of these tenancy laws in Abu Dhabi to make sure you aren’t violating them. If you are doubtful about anything relating to occupancy, get in touch with your landlord or agent and sort out the confusion.
HOUSING FEE INFORMATION
According to Abu Dhabi Council Resolution No. 13 of 2016, Abu Dhabi tenants have to pay a housing fee to the Abu Dhabi Municipality. The standard housing fee stands at 3% of the annual rent and applies to all housing units of the capital. Please note that this fee is payable to the Municipality only and not the landlord of the unit.
RENTAL DISPUTE SETTLEMENT COMMITTEE OF ABU DHABI
A rental dispute settlement/resolution committee is established to hear both the landlord and tenants view in case of a rental dispute. The committee hears from both the parties and goes through the claims and defences presented by the accuser, thoroughly. Claims or views of witnesses, if any, are also taken into consideration. These committee hearings take place in Arabic, nevertheless, an interpreter is always provided for those who don’t understand the language.
To file for a rental dispute in the capital, you will have to go through 5 stages:
Stage 1: Arbitration and Reconciliation Departments – When either of the parties files a complaint, landlords and tenants assemble at the arbitration and reconciliation department to settle the dispute.
Stage 2: Court of First Instance – To start off the process, the court hears claims by the parties in the form of a memorandum.
Stage 3: Court of Appeal – An appeal can be filed after the Court of First Instance passes the judgement within 15 days. But this is only for claims exceeding AED 50,000.
Stage 4: Court of Cassation – After the Court of Appeal passes judgement, cases worth AED 330,000 or more can be filed within 30 days.
Stage 5: Enforcement Department – The party with judgement in their favour has the right to pressure the other party for settlement through legal means.
Abu Dhabi Tenancy Law amendment made on 20th November 2017 states the decision of the Abu Dhabi Rent Dispute Settlement Committee (RDSC) is final and is compulsory to be followed by both the parties involved.
In case the amount of the dispute claim goes over AED 50,000, either party has the right to file an appeal within 15 days from the day of judgement. Then as mentioned above, parties can file a request for claims going over AED 300,000 before the Court of Cassation within 30 days.
Please note that by law, you cannot submit a rental dispute application unless the tenancy contract is registered with ADM’s Tawtheeq system.
The Committee can ask tenants (occupying a property for two years or more) to vacate the leased property if the landlord incurs any kind of damages due to the tenant’s occupancy. As per the law, the landlord can give the tenant up to six months to vacate the rented villa or apartment.
Now that you know all about the rights of tenants in Abu Dhabi and what to do in case of rental disputes, you are in a position to rent a property in the UAE’s capital. Here is a list of properties on rent in Abu Dhabi.
You can get your hands on some of the best villas for rent in Abu Dhabi and rental flats in Abu Dhabi at a variety of prices. Go through our list of available units and make a wise decision, suiting your budget
Moreover, if you are looking for rental properties in other parts of the UAE, you can find a variety of units of rental properties in the UAE. Please note that the rights of tenants will differ from place to place.
Stay tuned to your favourite property blog for more on everything pertaining to real estate.
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