Dubai Local Time

New law in Abu Dhabi entitles tenants for a lease period of 5 years

According to a new resolution issued by the Rental Disputes Settlement Committee in Abu Dhabi, which amends the Article 20 of Law No.20, on the landlord-tenant relationship, the landlords are given the right to ask the tenants to vacate the property, after five years from the date of tenancy contract.


The Rents Committee Chief, Mohammed Rashid Al Nuaimi, said that property owners are not permitted to ask tenants to vacate the residential units unless five (not three years) years have passed from the date of original contract, unless the committee orders otherwise.


The law grants a six month grace period to tenant to vacate the property.


Al Nuaimi revealed that the panel had received requests from owners, seeking eviction of tenants, after three years of passing the law. However, the amendment deferred the application of these requests to November 8, 2011, when landlords can ask the tenants to leave, on the ground that the first contract was signed on November 9, 2006.


For instance, for a contract signed on 1st January 2009, the landlord can ask a tenant to vacate the property after 1st January 2014.


The law also does not permit landlords to lease units at higher rents on completion of the five-year contract, as the law does not permit increase of rents beyond the permissible limit of 5 percent from the last contract obtained by the previous tenant.


Moreover, was there will be no rental increases, anyway, the landlords should stop demanding tenants to leave their units, Al Nuaimi said.


In case landlords do not abide by this rule, the tenants can file a case, and the committee will apply the old rent value.


Posted on 28/12/2009


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