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Being a Landlord or tenant, is imperative to know the fundamental rules of tenancy laws to safeguard us. The tenancy privileges of landlords & tenants are provided here-below
With rapid developments over the past decade approximately, the Abu Dhabi property market is zooming right to the highest within the region. The population is spoilt for choice when it involves renting an area to measure in Abu Dhabi. Apartments, villas, high-end or mid-market, islands or mainland – there’s something for everyone. However, what does it mean to be a tenant in Abu Dhabi?
If you’re a resident of the capital, here’s everything you would like to understand about Abu Dhabi tenant rights and therefore the tenancy law in Abu Dhabi.
The Abu Dhabi Executive Council No. 4 of 2011 demands landlords to record properties and effectual tenancy contracts with the Abu Dhabi Municipality (ADM). ADM uses a system called Tawtheeq to remain a record of tenancy contracts and data related to the property being leased. The Abu Dhabi tenancy contract registration ought to be in English and Arabic, otherwise only in Arabic for it to be accepted within the Tawtheeq registry.
The following Administrative Resolution No. 97 of 2012 additionally regulated the registration process of lease contracts. The above resolution commands Abu Dhabi Municipality to organize a chronicle of the Abu Dhabi tenancy contract registrations which must comprise data related to the property (residential or commercial), together with landlord and tenant data.
With respect to the tenancy law in Abu Dhabi, all the landlords are required to register their properties and consequent tenancy contracts with ADM. Tenants should ask to ascertain the property registration certificate when deciding to rent in Abu Dhabi.
The Abu Dhabi Tenancy Law glimpsed its First Amendment/revision in 2010 with Abu Dhabi Law No. 4. The Law limited or capped the yearly rental cost rises at 5% which intended that tenants can expect a maximum rent increase of up to 5% at the time of the renewal of their tenancy.
In 2012, the Abu Dhabi council issued law no. 32 which eliminated the rental price limitation and permitted the landlords to increase property prices as per the market rates. However, the decree required landlords to provide two months’ notice to tenants stating the altered price.
Effective 13th December 2016, the Abu Dhabi Council reinstated the five hundred rental cap on the lease agreement with Resolution No. 14 of 2016. Landlords and tenants can choose the rental price and enter a lease agreement. The landlord can increase the worth annually within the worth cap set by this resolution.
Presently, the Abu Dhabi laws state that a 5% rental cap/limitation applies to leased properties in Abu Dhabi. Landlords and property management companies can increase annual rent within this limit, provided they notify tenants a minimum of 2 months before contract renewal.
The 5% rental cap in Abu Dhabi ensures landlords and owners cannot charge the tenant above the market rate.
Administrative Resolution No. 12 of 2012 constituted certain instructions/guidelines for occupancy/inhabitation in Abu Dhabi housing units. Here are a number of the restrictions that Abu Dhabi tenants got to be mindful of:
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