Abu Dhabi Tenancy Law: All You Need To Know
Tenant notice period
Law No. 4 of 2010 entitles landlords to evict tenants when their tenancy contract expires. This legislation of the Abu Dhabi rental law also allows landlords to refuse renewal of the tenancy contract if they wish to do so.
“A landlord can evict the tenant by giving 60 days’ notice prior to the end of the lease date. He/She no longer has to give a reason for this eviction. Similarly, if a tenant no longer wishes to renew the lease, a 60 days’ notice has to be given to the landlord stating that the lease will not be renewed”, said one of the UAE’s most influential real estate professionals, Mario Volpi.
The Abu Dhabi Executive Council Law No. 32 added to the Abu Dhabi rental law states that landlords have to issue an evacuation or tenant eviction notice two months before contract renewal. Following standard Abu Dhabi tenant eviction procedure, this notice period has to be served by both parties.
Under the Abu Dhabi property law pertaining to tenancy, landlords and property management companies in the capital have to give tenants 2 months notice for any amendments they wish to make to the tenancy contract. This applies to rent increase, eviction or changes to other tenancy contract terms.
Occupancy in Abu Dhabi Rental Property
Administrative Resolution No. 12 of 2012 established certain guidelines for occupancy in Abu Dhabi residential units. Here are some of the restrictions that Abu Dhabi tenants need to be mindful of:
- The number of occupants is based on the total area of the apartment or villa. The area allocated to each occupant should be no less than 14 sq. m (excluding children and housemaids)
- Occupants should not use halls and corridors in residential units as bedrooms
- Landlords cannot divide a residential unit to lease separately without special permission
- A single room in the residential property cannot have more than three occupants living simultaneously (excluding children and housemaids)
- More than one family cannot share a single residential unit
- Families occupying a single residential unit cannot share it with persons who are not related to the family (children and housemaids excluded)
It is important to understand occupancy rights to make sure you don’t end up violating the Abu Dhabi laws. When in doubt, check with your agent or landlord.
Housing Fees
Abu Dhabi tenants also pay a housing fee to Abu Dhabi Municipality, according to Abu Dhabi Council Resolution No. 13 of 2016. The housing fee is a standard 3% of annual rent and applies to all housing units in Abu Dhabi. It is payable to the Municipality, not the owners of the unit.
Abu Dhabi Rent Dispute Settlement Committee
“One of Abu Dhabi’s most tenant-friendly rulings is the formation of a dispute resolution committee which hears disagreements arising between landlords and tenants, thus giving tenants a fair voice in case of any conflict.” – Mario Volpi.
The Head of Judicial Department Resolution No. 10 of 2010 announced the formation of a Dispute Resolution Committee to resolve legal disputes and protect both landlord and tenant rights. The Committee will hear both ends of the disputes with claims and defences presented by the litigant, witnesses and any other person. Hearings generally take place in Arabic, with an interpreter provided for those who don’t speak the language.
How to file rental disputes in Abu Dhabi?
An Abu Dhabi Rent Dispute goes through 5 key stages:
STAGES OF RENTAL DISPUTES IN ABU DHABI
- Stage 1: Arbitration and Reconciliation Departments – Landlords and tenants convene to resolve the dispute when one party files the complaint.
- Stage 2: Court of Frist Instance – The court will hear claims brought forward by parties in the form of a memorandum.
- Stage 3: Court of Appeal – An appeal can be filed here, after the Court of First Instance passes judgement withing 15 days only for claims exceeding AED 50k.
- Stage 4: Court of Cassation – Cases valued at AED 330k or more can be filed within 30 days after the Court of Appeal passes judgment.
- Stage 5: Enforcement Department – The party with the favourable judgment can pressure the other party to settle through legal means.
The most recent amendment to the Abu Dhabi Tenancy Law on 20th November 2017 states that the decision of the Abu Dhabi Rent Dispute Settlement Committee (RDSC) will be final and binding upon the involved parties. If the dispute claim amount exceeds AED 50,000, either party can file an appeal within 15 days from the day of judgement. Parties can file an appeal for claims exceeding AED 300,000 before the Court of Cassation within 30 days.
The legislation also states that to submit a dispute application to the Committee, the tenancy contract must be registered in the Abu Dhabi Municipality’s Tawtheeq system. Here’s how to get Tawtheeq in Abu Dhabi.
The Committee can ask tenants (of two years or more) to vacate the leased property if the landlord suffers damages due to the tenant’s occupancy. Legally, the landlord can allow up to six months for the tenant to leave the rented apartment or villa.
How to file a rent dispute with RDSC? (According to Abu Dhabi Digital Government)
- Submit the application along with the required documents at the customer service desk in RDSC
- Fill in the complaint form at the customer service desk
- Pay the fees at the finance counter and receive a receipt
- Receive a date for the first case session
Documents required: Original RDSC application, Original Petition with 2 copies, Copy of Tenancy Contract, Passport Copy, Trade License (in case of a business party), and Original Power of Attorney (in case the principal is acting on behalf of another party)
Fees: 4% Annual Rent (max. AED 10,000), Local Newspaper Advertisement Cost (if the defendant fails to show up), Other Fees (expert consultation, the fee for rent deposit with RDSC, etc.)
If you need to file a dispute claim, contact Abu Dhabi RDSC on 800 2353. The Abu Dhabi Rent Dispute Settlement Committee is located on Defence Street (opposite Algfah Hotel), near Marriage Fund. There is another branch in Al Ain, located inside Al Ain Court.
Key Takeaways
The Abu Dhabi property law for tenants has seen many amendments over the years. Here are the most important things to keep in mind if you are a tenant in Abu Dhabi:
- Ask to see a registration certificate to make sure the property is registered with the Municipality
- Review the terms and conditions of the tenancy contract carefully. Pay special attention to the tenancy period, rental amount, maintenance, and other fees
- To renew, modify or terminate the contract, you should notify your landlord two months before contract renewal. This is the standard tenant notice period
- If you find yourself in a legal dispute, raise it with the Abu Dhabi Rent Disputes Settlement Committee
- Your landlord cannot raise the annual rent at a rate higher than 5%
- Your landlord has to give you a two months’ notice in case of eviction, rent increase or any other change to the tenancy contract terms
The Abu Dhabi property law for tenants is standard for the most part. It helps to know what you can or cannot do as part of your contract with your landlord. Keep all of the above in mind before signing a tenancy contract to avoid any complications down the lane. If you are searching for a property for rent in Abu Dhabi, knowing your rights according to the law would definitely be beneficial.
“The capital has taken some important steps to ensure all the stakeholders are protected in the Abu Dhabi real estate market. With such standardisations coming into place, more people can invest and rent with confidence, elevating the overall popularity of the market,” said Haider Ali Khan, the CEO of Bayut.
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