Sharjah: Landlords in Sharjah cannot charge tenants an annual renewal fee unless stated in the tenancy contract, Sharjah Municipality said.
Any additional fee not listed on an attested tenancy contract cannot be requested by the landlord or real estate agency and is considered a violation.
The laws on tenancy contracts are listed on the Sharjah Municipality’s website- www.shjmun.gov.ae
Omar Al Sharji, Assistant Director General of Customer Service section at the municipality, said the law, which regulates relations between landlords and tenants, states that a tenancy contract is valid for three years and the tenant’s rights are protected for that period, after which a new contract with new conditions is agreed on and signed by both parties. “If a tenant has agreed to the condition of paying annual fee at renewal, they must abide by the contract.”
Many Sharjah residents have been asked to pay annual fees despite the condition not being included in their contract.
A tenant, who did not wish to be identified said he has been asked “renewal service fees” by a real estate agent for the past 10 years for his villa in Sharjah.
“They admit this is not sanctioned by law, but they tell me, ‘we’ve kept your rent low so pay us this fee’. They do the same with other tenants in villas or apartments,” the tenant added.
Another tenant of a residential building said on condition of anonymity that he refused to pay the ‘fee’. “When I said it was not allowed, he offered me a discount on the ‘fee’. I insisted I won’t pay and he eventually backed off. But I know others in my building paid the fee,” he added.
Some residents are forced to sign a separate “management contract” with the real estate agent that includes a clause to pay the illegal rent renewal fee, which is a violation.
Al Sharji called on tenants to come forth with any complaints by submitting a form along with a copy of their tenancy contract to the rent dispute settlement division located at Industrial Area five. The complaint form should be submitted before the expiry date of the contract.
“I urge the public to be informed about the rights and duties of both tenants and landlords in order to avoid violating any laws,” he said.
