The Abu Dhabi property market is slowly moving up to the top of the region because of improvements the city has gone through within the last ten or so years. When it comes to the issue of renting a home the populace of Abu Dhabi is indeed fortunate for the numerous available options. There's accommodation for all budgets and tastes: free-standing houses or condominiums, high-end or moderate, and island or mainland. That being said, what does it mean to rent in Abu Dhabi? Below please find all the information you need regarding your rights as a tenant and the Abu Dhabi tenancy law if you reside in the capital.

The growth of the tenancy law in Abu Dhabi over the years

The tenancy law that regulates the tenancy contracts in Abu Dhabi today was made through Law No. 20 of 2006. Afterward, the law underwent several changes because of the changing market situation in the country. To ensure that the parties’ interests are protected under the tenancy law in Abu Dhabi, the authority has ensured that both parties are protected. Also to prevent or regulate some issues like the eviction Process or Rental charges, Law no: 20 of 2006 was enacted. Originally landlords could not eject the tenants at the end of the lease terms but this could be changed later. The current situation in the tenancy law in Abu Dhabi has been as a result of changes that have been made to the initial legislation to accommodate various situations.

Tenant rights under the tenancy law in Abu Dhabi

The following basic principles will help you understand your rights as an Abu Dhabi tenant.

Registration

Abu Dhabi Executive Council No. 4 of 2011 makes it incumbent on the landlords to register properties and tenancy agreements with the Abu Dhabi Municipality commonly referred to as ADM. Information regarding the rented property as well as the tenancy agreements are documented in ADM using a system called Tawtheeq and records their tenancy agreements. For the Abu Dhabi tenancy contract to be registered at the Tawtheeq registry it has to be in either both Arabic and English, or Arabic language only.

The registration procedure for lease contracts was extended and standardized by the subsequent Administrative Resolution No. 97 of 2012. As per the provision of the said resolution, ADM is supposed to maintain a registration of tenancy contracts for residential, commercial, or industrial units in Abu Dhabi and the details are supposed to contain information on both the landlord and the tenant.

In the tenancy law of Abu Dhabi, the landlords are required to notify ADM with their properties and any subsequent tenancy agreements entered into. When deciding to rent a property in Abu Dhabi; the tenant has to ask to be presented with the registration certificate.

Abu Dhabi Rental Price Cap

Tenancy law reform in Abu Dhabi started in 2010 when the Abu Dhabi council issued what was called the Abu Dhabi Law Number 4 which was an amendment to the first Abu Dhabi Tenancy Law. When the lease is renewed, tenants are likely to pay up to 5 percent for their rent because the law only allows a 5 percent increase for annual rental price increases. It resulted in Law No. 32 which was formed in 2012 by the Abu Dhabi Executive Council to scrap the maximum rent provisions and enable homeowners to raise property prices as per the market price. However, the order required the landlords to give the tenants a two-month notice of the changed price.

Cass. no 14/2016 issued by the Abu Dhabi Council increased the amount to 5% on the lease agreement with effect from December the 13th, 2016.

Currently, all the rented homes in Abu Dhabi are under the 5% rental increase based on the laws of the city. There are no limitations on the annual lease increase by landlords and property management firms as long as they give their tenants at least 2 months advance notice before the contract renewal.

Hence it should not be more than 5% for your annual rent increase whether you are in the fancy areas and renting Saadiyat Beach villas or in affordable flats like the ones located in Mussafah.

Tenant notice period

In accordance with Law No. 4 of 2010, when tenants’ lease contract term has elapsed, landlords are free to evict tenants. However, under this part of Abu Dhabi rental law, landlords also have the right to refuse renewal of tenancy contracts.

There are ways on how the landlord can evict the tenant if the landlord wants to evict the tenant, he must give 60 days from the end of the lease. This enger conviction no loeeds the reason of the cause from him/her. Same to this, the tenant needs to give 60 days written notice to the landlord if the tenant will not renew the lease says Mario Volp, one of the well-known real estate brokers in UAE.

Law No. 32 of the Abu Dhabi Executive Council was included in the rental legislation of the city; thus, landlords have to provide an evacuation or tenant eviction notice at least one or two months before the expiration of the lease. Both sides must spend this notice time under regards to the standard Abu Dhabi tenant eviction procedure.

The legal provisions in Abu Dhabi for tenancy, include that any the management businesses and landlords in the city must give renters a two-month notice before they change any clause of the tenancy contract. This involves amendment of other conditions of the tenancy agreement including issues of rent hike or removal from the premises.

Occupancy in Abu Dhabi Rental Property

Certain restrictions concerning the density of population in the existing residential units in Abu Dhabi were initiated with the help of Administrative Resolution No. 12 made in 2012. The following are some limitations that tenants in Abu Dhabi should be aware of.

The following are some limitations that tenants in Abu Dhabi should be aware of:

• The total of space available in the apartment or villa defines the number of people that can be accommodated. Every individual occupant should have a least 14 sq m (without regard to the number of children and retainers, if any).
• Professional facilities in residential apartments such as hallways and corridors should not be used by tenants for sleeping.
• More and more often the owners are eager to divide in two or more leases one residential unit or apartment; however, they can do this only with the prior consent of the lessee.
• A room in a residential property means a single room and in no case shall the occupants of that room exceed three persons simultaneously excluding housemaids and children.
• There must be clearly defined tenancy for each house; a house cannot be occupied by more than one family.

If one is keen on avoiding a violation of rules and regulations in the Emirate of Abu Dhabi, then he or she needs to have a good understanding of Occupation Rights. If you’re not sure you can always ask your landlord or your agent.

Housing Fees

The regulation signed as Abu Dhabi Council Resolution No. 13 of 2016 also reveals that residents in Abu Dhabi are further expected to pay a housing fee to the Abu Dhabi Municipality. Exactly, all housing units in Abu Dhabi are charged uniformly regardless of the company and the rent value with 3% of the annual rent – this is the housing charge. Payments are aimed at the Municipality, not the owners of the unit, and therefore payments of players producing smaller amounts of crap can be higher than the payments of owners of big crap factories.