Tenants Can Now End Lease Early Under New Sharjah Law
Sharjah has introduced new rental regulations that provide clearer guidelines for landlords and tenants. The law was announced by Sheikh Dr. Sultan bin Muhammad Al Qasimi, Ruler of Sharjah, and mandates several new provisions, including contract ratification timelines, eviction rules, and rent adjustments.
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Contract Ratification and Eviction Rules
The new rental law requires landlords to finalize contracts within 15 days of issuance. Landlords are also restricted from evicting tenants within the first three years of a residential lease or five years for commercial, industrial, or professional properties. Previously, tenants could face eviction with just three months' notice and approval from the Sharjah Municipality.
The law outlines specific situations where eviction is allowed, such as non-payment of rent within 15 days or violations of the lease terms. Additionally, if the tenant subleases the property illegally or uses it for purposes not specified in the contract, eviction is permitted.
Landlord Occupancy and Property Demolition
If a landlord intends to demolish or renovate a property, or if they plan to use it for personal residence or for a close relative, they can request eviction. However, landlords must meet strict conditions, such as not owning another suitable property within the municipality and giving tenants at least three months' notice.
Rent Payment and Increases
In cases where landlords refuse to accept rent payments or haven’t designated a payment location, tenants can deposit their rent with a designated center according to the executive regulations. If no clear payment schedule is agreed upon, rent is to be paid in four equal installments over the lease period.
Rent increases are also regulated. Landlords are not allowed to raise the rent within the first three years of the lease unless both parties agree. After the three-year period, any increase must reflect the "fair rent value," as defined in the law’s executive guidelines.
Contract Termination Conditions
The law also clarifies the rules surrounding contract termination. A tenant’s rights are protected if the ownership of the property changes hands, with the new landlord required to honor the existing lease agreement. Additionally, a lease does not automatically end if one party dies, except in specific cases where heirs request the termination.
In exceptional circumstances, tenants can request early termination of the lease, but they must pay at least 30% of the remaining rent if the landlord does not agree to an early exit. Disputes over termination can be referred to the relevant authority for resolution.