With rapid developments over the past decade or so, the Abu Dhabi property market is zooming right to the top in the region. The population is spoilt for choice when it comes to renting a place to live in Abu Dhabi. When it comes to rental options, there are a few of variety to choose from clean and cozy studio apartments to three-bedroom apartments. From villas or apartments, high-end or mid-market, islands or mainland – there’s something for everyone. So when it is time to sign a new contract or renew your lease, it is important to determine and be aware of the rent increase from your landlord’s demands and what are your rights, if it is in line with what the Abu Dhabi Tenancy Law allows.
One of the ways you can check and help you in finding your next home is through the online market which gives you a clear idea of the rent increase and which unit to take, the demands, and what are the latest around the place that you can expect if your contract is up for renewal or taking a new, or how is the market in the area if it’s going up or down, giving you the opportunity to make an informed decision without being subjected to such situations as a rent increase.
But that’s not all. Here are the things you need to know as a tenant.
MUST-KNOWS FOR TENANTS LOOKING TO RENT/RENEW
- NOTICE PERIOD
Law No. 4 of 2010 entitles landlords to evict tenants when their tenancy contract expires. This legislation of the Abu Dhabi rental law also allows landlords to refuse renewal of the tenancy contract if they wish to do so.
The Abu Dhabi Executive Council Law No. 32 added to the Abu Dhabi rental law states that landlords have to issue an evacuation or tenant eviction notice two months before contract renewal. Following the standard Abu Dhabi tenant eviction procedure, this notice period has to be served by both parties.
Under the Abu Dhabi property law pertaining to tenancy, landlords and property management companies in the capital have to give tenants 2 months’ notice for any amendments they wish to make to the tenancy contract. This applies to rent increase, eviction, or changes to other tenancy contract terms.
- REGISTRATION
Obtaining a Tawtheeq or Attested Tenancy Contract is a must when renting a property in Abu Dhabi. This is to prevent any incidence of the property being rented out more than once at the same time. The pursuant to Administrative Resolution No. 97 of 2012 further standardized the registration process of lease contracts. The resolution mandates ADM to prepare a record of the Abu Dhabi tenancy contract registration which must contain data related to the property (residential, commercial or industrial units), along with landlord and tenant data. Additionally, in case disputes or other issues arise, the Abu Dhabi Rental Dispute Settlement Centre will not intervene if your contract is not registered.
- RENTAL PRICE CAP
The Abu Dhabi Tenancy Law saw its first amendment in 2010 with Abu Dhabi Law No. 4. The Law capped the annual rental price increases at 5% which meant tenants could face a rent increase of up to 5% at the time of lease renewal.
Effective 13th December 2016, the Abu Dhabi Council reinstated the 5% rental cap on the lease agreement with Resolution No. 14 of 2016. Landlords and tenants can decide on the rental price and enter a lease agreement. The landlord can increase the price annually within the price cap set by this resolution.
Currently, the Abu Dhabi laws state that a 5% rental cap applies to leased properties in Abu Dhabi. Landlords and property management companies can increase annual rent within this limit, provided they notify tenants at least 2 months prior to contract renewal. 
- DOCUMENTATION
The most important thing is to keep copies of all correspondence, bills and other related documents. You will need these in case you need to take your case to Rental Dispute Centre to resolve your future concerns.
ABU DHABI RENT DISPUTE SETTLEMENT COMMITTEE
The Head of Judicial Department Resolution No. 10 of 2010 announced the formation of a Dispute Resolution Committee to resolve legal disputes and protect both landlord and tenant rights. The Committee will hear both ends of the disputes with claims and defenses presented by the litigant, witnesses and any other person. Hearings generally take place in Arabic, with an interpreter provided for those who don’t speak the language.
A MUST REMEMBER
The Abu Dhabi property law for tenants has seen many amendments over the years. Here are the most important things to keep in mind if you are a tenant in Abu Dhabi:
- Ask to see a registration certificate to make sure the property is registered with the Municipality
- Review the terms and conditions of the tenancy contract carefully. Pay special attention to the tenancy period, rental amount, maintenance, and other fees
- To renew, modify or terminate the contract, you should notify your landlord two months before contract renewal. This is the standard tenant notice period
- If you find yourself in a legal dispute, raise it with the Abu Dhabi Rent Disputes Settlement Committee
- Your landlord cannot raise the annual rent at a rate higher than 5%
- Your landlord has to give you a two months’ notice in case of eviction, rent increase or any other change to the tenancy contract terms
The Abu Dhabi property law for tenants is standard for the most part. It helps to know what you can or cannot do as part of your contract with your landlord. Keep all of the above in mind before signing a tenancy contract to avoid any complications down the lane.
