Ras Al Khaimah puts in place rent cap law
New rent cap comes into force in Ras Al Khaimah
Ras Al Khaimah: The long awaited new rent cap law was released on Monday in Ras Al Khaimah.
A 15 per cent annual rent cap will be issued on tenancy contacts signed before January 2004, a 10 per cent rent cap on tenancy contracts from after January 2004 until January 2008 and a 5 per cent rent cap on tenancy contracts issued from January 2008 onward.
Shaikh Saud Bin Saqr Al Qasimi, Ras Al Khaimah Crown Prince and Deputy Ruler, issued the new rent cap law No 14 for the year 2008.
The first rent cap law issued in Ras Al Khaimah limited the rights of landlords and did not give them the right to evict their tenants.
A later rent cap law No 8 for the year 2008 gave landlords the upper hand in evicting tenants. The Emirati court withdrew this law and promised to impose an new law, fair to both parties.
According to the new law, the rent cap can be applied a year after the expiration of the tenancy contract.
The new rent cap is to be applied on all types of property including residential and commercial. Only agricultural land, labour camp properties, temporary rented areas like hotels and exhibition places and properties rented by free zones and ports are exempt from the new law.
The law states that the standard tenancy contract period is three years, or a time agreed between the lessee and lessor. In times of disagreement, the longer period will be recognised.
Sub-letting
The new law stipulates the landlord cannot evict tenants unless they fail to pay the rent within 15 days or if the tenant sub-lets the property without proper written authorisation from the landlord.
The landowner can also evict tenants who use the property for illegal activities, or if the property is proven to be dangerous.
Property owners may have the right to deny tenancy for property when he proves that he or one of his children are in need of it.
A two-month grace period must be given for the tenant in such conditions which should take place through the emirate's court only. The law warns that if landlords fail to meet these conditions for eviction give the tenant the right to claim compensation.
