Tenant Rights According to Tenancy Law in Abu Dhabi 

The UAE seeks to establish real estate laws that regulate the relationship between tenants and landlords and preserve the rights of each of them, in addition to preserving the value of the property in the region to increase investments and achieve stability for tenants. In the Emirate of Abu Dhabi, the increase in population and demand for properties for rent has been observed, which has led to the provision of all types of housing units, including apartments, villas, houses, and studios. Many laws have been enacted to regulate the rental process in the emirate, so both tenants and landlords must know the Abu Dhabi tenancy law.

Here’s everything you need to know about renting real estate in Abu Dhabi.

Contents:

Abu Dhabi Tenancy Law

The latest amendments to Law 20 of 2006

In 2006, Abu Dhabi Law No. 20 was issued to regulate many issues that arise between landlord and tenant such as rental value, eviction policies, property handover, and others. The law before the amendment, No. 4 of 2010, did not allow the landlord to ask the tenant to vacate the property if the contract was terminated. From this basic law of the Emirate of Abu Dhabi, several changes were made to the rental properties, reflecting various factors, and the law was amended to what it is today. 

Masaakin provides a simplified comparison of Abu Dhabi’s new rental law as it has been amended over the years:

Amendment Details	Amendment number	Year of Release
Enacting the Rent Law on contracts and the relationship between tenants and landlords.	Abu Dhabi Law No. 20	2006
Landlords are legally entitled to ask tenants to vacate + 5% rent cap with no notice period required.	Abu Dhabi Law No. 4	2010
Establishing an “Abu Dhabi Municipality Documentation System” to perform lease registration procedures.	Abu Dhabi Executive Council Decision No. 4	2011
Issuing regulations to occupy a housing unit.	Administrative Decision No. 1	2012
Annual rent increase not to exceed 5%	Abu Dhabi Executive Council Decision No. 32	2012
Tenants must pay a housing fee of 3% of the total rent to Abu Dhabi Municipality.	Abu Dhabi Council Decision No. 13	2016
Re-cap the annual rent by 5%	Abu Dhabi Council Decision No. 14	2016
Rental dispute resolution decisions in Abu Dhabi are final and binding on both parties.	Amendment No. 20	2017

For deeper understanding of the details of the previous amendments, follow along with Masaakin’s detailed explanation of the most important points of the new rental law in Abu Dhabi:

Real Estate Registration in Abu Dhabi

In 2011, the Abu Dhabi Executive Council enacted a set of laws and decisions imposed on property owners centered around the registration of rental contracts in Abu Dhabi; Abu Dhabi Municipality follows a documentation system ” Tawtheeq system ” to maintain records of rental contracts and data related to the property.

The lease must be written in Arabic and English or Arabic only to be accepted under Abu Dhabi’s lease documentation law.

In 2012, the registration process was further regulated and the details to be mentioned in the lease contract were increased to include

• Property details (whether the property is commercial, residential, commercial or industrial).
• Landlord details and information. 
• Details and information of the tenant.

According to the Abu Dhabi Municipality tenancy law, landlords must register their properties and rental contracts with the Abu Dhabi Municipality

Besides, tenants are advised to request a property registration certificate and read it carefully before making a rental decision in Abu Dhabi. 

Rent Increase in Abu Dhabi

Law No. 32

According to the law passed in 2010, annual rental price increases were capped at 5%. However, later in 2012, the Abu Dhabi Executive Council issued Law No. 32, which abolished the 5% rent cap and allowed landlords to raise rents in line with the real estate market.

This decree also required the landlord to give the tenant at least THREE months‘ notice, including the new prices and the change in them, and this law was later amended.

Currently, the law that caps rents at 5% is applied to rental properties in Abu Dhabi, and landlords and property management companies have the right to raise the rent within this limit, provided they notify tenants at least two months before the renewal date of the contract.

Tenant Notice Period in Abu Dhabi 

According to the Abu Dhabi Executive Council decision, the landlord must notify the tenant of the need to vacate the property TWO months before the contract renewal date, while adhering to the legal procedures adopted in the emirate to ensure the rights of both parties.

Abu Dhabi’s Rental Law also stipulates that landlords and property management companies must notify tenants TWO months in advance if there are any amendments to the rental contract, whether it relates to rent increases, eviction requests, or any other changes to the terms of the contract.

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Municipality fees in Abu Dhabi: How it protects the tenant and makes it easier to pay

To protect the rights of tenants in Abu Dhabi, the municipality imposes annual fees on rental properties, the percentage of which varies according to the type of residential unit. Apartment tenants pay 5% of the value of the lease, while for villa tenants it is 7.5%.

This fee applies to all residential units, with a minimum of AED 450, and is paid annually for the duration of the lease. Although the amount is due at the start of the contract, tenants can pay it in monthly installments in addition to their ADDC electricity and water bill, reducing their financial burden.

The fees are paid directly to the municipality and not to the property owner, which enhances transparency and prevents any exploitation by landlords.

Abu Dhabi Rental Dispute Settlement Committees

The Abu Dhabi Rental Law introduces the Abu Dhabi Rental Dispute Settlement Committee to hear the statements of the tenant and the landlord in the event of a rental dispute. The committee listens to the parties to the dispute and their claims and defenses from the litigants, witnesses, and any other person.

The hearings are usually held in Arabic with an interpreter available for non-native speakers. It is worth noting that a request to resolve a dispute between a tenant and a landlord cannot be submitted unless the contract is registered with the Abu Dhabi Municipality’s documentation system.

Documents to be submitted to the Abu Dhabi Ental Dispute Settlement Committees:

1. The original dispute resolution centre application.
2. The original petition includes a copy of the lease agreement.
3. Copy of passport.
4. Commercial license (if the parties to the dispute are workers and not individuals).
5. Principal Commissioner (if the applicant is representing another party).

Important Tips before Signing a Lease

1. Review the registration certificate to ensure that the owner has registered the property with Abu Dhabi Municipality.
2. Review the lease agreement, and examine all terms and conditions, especially those related to the rental period, maintenance, and other fees.
3. The lease is valid until the end of the term specified in the contract, and the contract can be renewed for additional periods as agreed upon by both parties.
4. The landlord must give the tenant two months’ notice before requesting eviction, increasing the rent amount, or making any change.
5. File a case at the Abu Dhabi Rental Dispute Resolution Committee if the tenant finds themselves in a legal dispute over the rent.
6. A landlord cannot raise the annual rent by more than 5% according to the Abu Dhabi Rental Law.

Thus, we have detailed the rental laws in Abu Dhabi and highlighted the rights of tenants in particular. Note that each emirate in the UAE sets its laws to suit the interests of the landlord and tenant. So if you are looking to live in Dubai, for example, here is a dedicated article explaining the rental law in Dubai. 

Contact our trusted real estate agents to enquire about the best properties available for rent or sale.

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