Sharjah, one of the UAE’s most prominent emirates, has recently introduced a new rental law that impacts both landlords and tenants.
Issued by His Highness Sheikh Dr. Sultan bin Muhammad Al Qasimi, Ruler of Sharjah and Member of the Supreme Council, this law is part of the emirate’s efforts to simplify the rental process and ensure compliance with the law.
There are big changes to the way rental contracts will be handled and a more structured rental environment.
One of the main features of this new law is that landlords must ratify rental contracts within 15 days of issuance, otherwise they will face legal and financial consequences.
This new law is clear and has deadlines and will bring more transparency to the rental market and protect the interests of both parties in the rental relationship.
Key Provisions of the New Rental Law
The new law applies to all parties, landlords, and tenants, with penalties for non-compliance. It covers all types of properties, residential, commercial, industrial, and professional premises, and has rules on rental contracts, maintenance, and tenant rights.
The main objective is to document and certify property rentals to have a transparent and smooth process and reduce disputes and legal issues.
Mandatory Ratification of Rental Contracts Within 15 Days
One of the biggest changes is the deadline for landlords to ratify rental contracts. According to the new law, landlords must ratify or approve the rental contract within 15 days of issuance.
This will register the contract with the relevant authorities and create a legal framework for the landlord-tenant relationship. Not complying with this requirement may lead to administrative fines.
Ratification has multiple purposes. It formalizes the agreement between both parties and protects the tenant by documenting and recognizing their rights and interests.
This is especially important for tenants renting properties for residential, commercial, or industrial use as it gives them legal protection and transparency in the rental market.
If the landlord refuses to ratify the contract within the 15-day period, the tenant can go to the judge for urgent matters.
In this case, the judge can force the landlord to ratify the contract. This adds another layer of protection to the tenant and prevents any delay or unfair practices from the landlord’s side.
If the landlord still fails to certify the contract administrative fines are imposed as per the law to ensure compliance.
Landlord’s Obligations
The new law also outlines the landlord’s obligations to the tenant to get the full benefit of the leased property.
These are:
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Handover of the Rented Property: The landlord must hand over the property in a habitable condition with all accessories intact and functioning. This means any defects in the property that prevent its intended use must be fixed before the tenant takes possession.
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Maintenance: Landlords must carry out any maintenance of the rented property unless otherwise agreed in the lease contract. This includes keeping the property in good condition throughout the rental period. If the landlord is responsible for maintenance, the tenant must provide reasonable access to the property to carry out the work.
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Property Modifications: The landlord cannot make any changes to the rented property that affect its usability without the written consent of the tenant. This prevents any unnecessary disturbance to the tenant’s use of the property.
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Approvals for Interior Design and Other Works: Tenants may want to do interior design work on the rented property. The law requires the landlord to approve such work if it is in line with the purpose of the rental and does not affect the structural integrity of the building. This is especially relevant for commercial or industrial tenants who may need to customize their space.
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No Harassment or Disturbance: Landlords cannot disturb or harass the tenant to vacate the property. This includes cutting off essential services or making the property uninhabitable. The new law also prohibits landlords from pressuring tenants by other means, such as threats or demands to get the tenant to vacate. It safeguards the tenant’s right to full use of the property.
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Return of Security Deposits: At the end of the rental relationship, the landlord must return the security deposits paid by the tenant unless deductions are made for the damage caused by the tenant. The landlord must provide a clear justification for any deductions to ensure fairness in this often disputed area.
Tenant’s Obligations
The new law does not put all the burden on the landlord. Tenants also have their own obligations to fulfill for a smooth rental relationship:
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Timely Payment of Rent: Tenants must pay the rent on the due date as stated in the lease contract. Failure to do so can lead to legal action, including eviction or penalties.
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Use of the Property: Tenants must use the property as per the lease contract. Any deviation from the agreed usage, such as using a residential property for commercial purposes, can be a ground for termination of the lease.
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Property Modifications: Like landlords, tenants are also required to obtain written consent from the landlord before making any changes or modifications to the property. This ensures both parties agree on the scope of the modifications and that necessary licenses are obtained from the local authorities.
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Routine Maintenance: Tenants are responsible for routine maintenance unless otherwise agreed in the lease contract. This helps keep the property in good condition throughout the rental period. Tenants are also required to allow access for the landlord to perform necessary maintenance.
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End of Tenancy Conditions: At the end of the lease, tenants must ensure the property is in the same condition as when they first moved in, minus normal wear and tear. If tenants made any improvements or planted greenery during their stay, they may be required to leave these behind if removing them would cause damage.
Exclusions from the New Law
While the new law covers all types of rental properties, there are several exclusions. For example, the law does not apply to agricultural lands or properties granted by the Emirate Government for residential purposes unless owned by private individuals.
Also, properties provided by employers to house their employees without rent are exempt from the law except if the employer rents the property from a third party.
Other exclusions are properties of hotels or tourist facilities, properties in free zones within the emirate, and properties designated by decisions from the Executive Council of Sharjah.
These exclusions are due to the nature of these properties and their role in the overall economy while still ensuring the majority of rental properties in Sharjah are covered by the law.
In a nutshell, for tenants, there is more protection against harassment and unfair practices and for landlords, a clearer law to get rent on time and responsible use of the property.
In short, this law brings Sharjah’s rental regulations up to date with the real estate trends and will have a balanced and healthy rental market in the future.
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