Abu Dhabi tenancy law and tenancy rights

• Tenancy Laws Amendments
• Tenant Rights Under Tenancy Laws Abu Dhabi
• Housing Fees
• Rental Dispute Settlements
• How to File Rental Disputes in Abu Dhabi
• FAQs

With rapid developments over the past decade or so, the Abu Dhabi property market is zooming right to the top in the region. The population is spoilt for choice when it comes to renting a place to live. Villas or apartments, high-end or mid-market, islands or mainland – there’s something for everyone. But what does it mean to be a tenant in the capital city? Here’s everything you need to know about tenant rights and the tenancy law in Abu Dhabi.

Overview of tenancy law and tenant rights in Abu Dhabi

Abu Dhabi’s tenancy law is governed by Law No. 20 of 2006 and subsequent amendments. It regulates the relationship between landlords and tenants, including contract renewal, eviction procedures and dispute resolution. Key aspects include a mandatory two-month notice period for contract renewal or amendments for residential properties, and a requirement to register tenancy contracts with Tawtheeq.

ABU DHABI TENANCY LAW AMENDMENTS

Abu Dhabi’s tenancy law began with Law No. 20 of 2006, with several amendments reflecting evolving market conditions. These updates ensure balanced protection for both landlords and tenants, covering aspects such as rental prices and eviction policies.

A notable change came with Law No. 4 of 2010, which introduced the landlord’s right to evict tenants at the end of a lease, provided proper notice is given. Subsequent amendments have further refined the process, gradually shaping the current tenancy framework in Abu Dhabi.

Tenant rights under the tenancy law in Abu Dhabi

Here are some general guidelines to help you understand tenant rights in Abu Dhabi.

Registration of Properties Under Abu Dhabi Tenancy Laws

The Abu Dhabi Executive Council No. 4 of 2011 requires landlords to register properties and effective tenancy contracts with the Abu Dhabi Municipality (ADM).

ADM uses a system called Tawtheeq to keep a record of tenancy contracts and data related to the property being leased. The Abu Dhabi tenancy contract registration has to be in English and Arabic or only in Arabic for it to be accepted in the Tawtheeq registry.

The subsequent Administrative Resolution No. 97 of 2012 further standardised the registration process of lease contracts. The resolution mandates ADM to prepare a record of the Abu Dhabi tenancy contract registration, which must contain data related to the property (residential, commercial or industrial units), along with landlord and tenant data.

According to the tenancy law in Abu Dhabi, all landlords are required to register their properties and consequent tenancy contracts with ADM. Tenants must always ask to see the property registration certificate when deciding to rent in Abu Dhabi. 

Abu Dhabi Rental Price Cap

The Abu Dhabi Tenancy Law saw its first amendment in 2010 with Abu Dhabi Law No. 4. The Law capped the annual rental price increases at 5% which meant tenants could face a rent increase of up to 5% at the time of lease renewal.

In 2012, the Abu Dhabi Executive Council issued Law No. 32, which removed the rental price cap and allowed landlords to raise property prices as per market rates. However, the decree required landlords to provide two months’ notice to tenants stating the altered price.

From 13^th December 2016, the Abu Dhabi Council reinstated the 5% rental cap on the lease agreement with Resolution No. 14 of 2016. Landlords and tenants can decide on the rental price and enter a lease agreement. The landlord can increase the price annually within the price cap set by this resolution.

The Abu Dhabi laws state that a 5% rental cap applies to leased properties in Abu Dhabi.  Landlords and property management companies can increase annual rent within this limit, provided they notify tenants at least 2 months prior to contract renewal. 

So whether you are living in luxury areas and renting the Saadiyat Beach villas or living in more affordable units in budget-friendly neighbourhoods such as the apartments for rent in Mussafah, your annual rent increase cannot be higher than 5%. 

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 before 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-day notice has to be given to the landlord stating that the lease will not be renewed

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 the standard Abu Dhabi tenant eviction procedure, this notice period has to be served by both parties.

Under the Abu Dhabi property law on 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 increases, evictions 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 Rental Dispute Settlement Committees

One of Abu Dhabi’s most tenant-friendly rulings is the formation of a Rent Dispute Resolution Committees (RDSC), which hears disagreements arising between landlords and tenants, thus giving tenants a fair voice in case of any conflict.

Rent Dispute Settlement Committees (RDSC) are under the Abu Dhabi Judicial Department (ADJD) purview. The relationship between the tenant and the property owner is governed by Law No. 20 of 2006.

Rent Dispute Resolution Committees 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 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 judgment. 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)

1. Submit the application along with the required documents at the customer service desk in RDSC
2. Fill in the complaint form at the customer service desk
3. Pay the fees at the finance counter and receive a receipt
4. 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)
• 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 16, Al Nawfal Street, Al Rawdah. 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

FAQs

What is the maximum rent increase allowed in Abu Dhabi?

Landlords can increase rent by up to 5% per year, but only with at least two months’ prior notice before the contract ends .

How much notice is required to end or modify a tenancy contract in Abu Dhabi?

Both the tenant and landlord must give at least 60 days’ written notice before lease expiry to end or change the agreement .

Is tenancy contract registration necessary in Abu Dhabi?

Yes. All contracts must be registered via Tawtheeq. Tenants should always request the property registration certificate to ensure it’s legally recognised .

Are there any additional housing fees tenants must pay?

Tenants are required to pay a 3% housing fee on their annual rent, as mandated by Abu Dhabi Municipality under Resolution No. 13 of 2016 

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. And make sure you are aware of the tenancy tax in Abu Dhabi as well.

For more information about such rights in other emirates, explore the FAQs about tenancy laws in Dubai.

If you are searching for a property for rent in Abu Dhabi, knowing your rights according to the law would definitely be beneficial.

Planning to move to Abu Dhabi? Browse through our latest listings for apartments for rent in Abu Dhabi. Or if you’d prefer a larger family home, there is a great selection of villas for rent in Abu Dhabi on our website too.