Sharjah residents: Rent freeze for three years, early termination penalties – all you need to know about new rental law
Lease certification is landlord’s responsibility, as per the new law
Dubai: Are you renting an apartment in Sharjah? If so, a new rental law has now come into effect, which will regulate your relationship with your landlord.
Not only does the law put in place greater protections for tenants and landlords, but it also provides more details on the processes that need to be followed in case of disputes.
What is the new law?
“Law No. 5 of 2024 issued by His Highness Sheikh Dr Sultan bin Muhammad Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, establishes a comprehensive framework for the leasing of real estate in the emirate of Sharjah. The law applies to properties leased for residential, commercial, industrial, or professional purposes, with certain exclusions such as agricultural lands and government-provided housing unless owned by the tenant. The legislation also excludes properties in free zones with specialised judicial bodies and those identified by the Executive Council of Sharjah,” Hassan Kashwani, Managing Partner at Dubai-based Kashwani Law Firm.
Reda Hegazy, partner at Al Suwaidi and Company Advocates and Legal Consultants, also spoke to Gulf News and said that the law came into effect from September 19, 2024, adding: “This new legislation aims to enhance clarity and security in rental agreements while protecting both tenants and landlords in Sharjah's real estate market.”
The law applies to properties leased for residential, commercial, industrial, or professional purposes, with certain exclusions such as agricultural lands and government-provided housing unless owned by the tenant.
But how exactly will the new law affect you as a tenant? Here are the key takeaways.
1. Lease certification is the landlord’s responsibility
“The law mandates that rental agreements must be in writing or in an electronic format, using forms approved by the Executive Council. The regulations specify the essential details to be included in these contracts and the procedure for their execution. Leases must be attested by the municipality within 15 days, with penalties for failure to comply,” Kashwani said.
Hegazy added that Article 4 of the law mandate that the landlords are required to pay the fees for certification of the contract, as well as details on a tenant’s rights in case of non-compliance.
“If a landlord fails to certify the lease within this timeframe, the tenant may request a judge to compel certification. Additionally, an administrative fine will be imposed on the landlord, as determined by the executive regulations,” he said.
If a landlord fails to certify the lease within this timeframe, the tenant may request a judge to compel certification. Additionally, an administrative fine will be imposed on the landlord, as determined by the executive regulations
2. Possible eviction for non-payment of rent
“Article 5 establishes that certified lease contracts are considered executory instruments, allowing landlords to demand eviction if tenants failed to pay rent after a 15-day notice period,” Hegazy said.
3. Conditions for eviction
The law also outlines other conditions in which a tenant can be asked to evict a premises.
“Eviction before the lease term ends can only occur for specific reasons, such as non-payment of rent, breach of contractual obligations, or if the property is needed for personal use by the landlord under strict conditions. Compensation is available for tenants if landlords misuse these provisions,” Kashwani said.
Hegazy also clarified that if the ownership of a property changes, the rental relationship between the landlord and tenant would not change.
“According to Article 17 of the new rental law, the rental relationship does not terminate due to a change in ownership of the leased property. This applies regardless of how or why the ownership changes, whether through sale, transfer, or gift. The new landlord cannot request the eviction of the tenant or increase the rent except in accordance with the provisions of this law and its executive regulations,” he added.
4. No rent increase in first three years
The new law continues to put in place the stay on rent increase during the first three years of a lease, and subsequent increases are regulated by market rates as determined by the Executive Council.
“Landlords cannot increase rent within the first three years of the rental agreement unless mutually agreed upon. If a rent increase occurs before this period ends, further increases cannot happen for another two years. Any subsequent rent increase must reflect fair market value, with specific guidelines provided in the law's executive regulations,” Hegazy said.
5. Early termination of contract
Hegazy also clarified that the new law provides clarification on what a landlord’s and tenant’s rights are in case the tenant wishes to terminate the contract before it expires.
“Article 19 allows tenants to request early termination of fixed-term leases if they can prove exceptional circumstances that make fulfilling their obligations burdensome. If a landlord denies this request, tenants may apply to the Rental Disputes Centre. Compensation for early termination is set at a minimum of 30 per cent of the remaining rent unless otherwise agreed,” he said.
“The law ensures the protection of tenant rights while balancing the legitimate interests of landlords, and it includes detailed provisions regarding penalties, execution, and enforcement. It serves to regulate the real estate market in Sharjah with clarity, aiming to prevent disputes and promote a stable leasing environment,” Kashwani added.