Understanding Rental Laws In Sharjah

Sharjah is the third most populated city in the UAE because of its affordability and wide range of properties. Many people who work in Dubai choose to live in Sharjah because the commute between the two cities is convenient. If you are planning to rent a home in Sharjah but are seeking information on rules and regulations, this blog will cover all the important rental laws to help you understand your rights and obligations as a tenant before signing the rental contract.

Tenancy Laws for Bachelors

Sharjah Tenancy Contract Law No. 2 of 2007 states that bachelors with low income and labourers can not rent apartments in family areas like Al Mjaz and Al Nahda. They can only seek accommodation in the industrial zones or Al Sajaa. Bachelors can share rooms, but subletting is prohibited in some regions. If the landlord allows, a bachelor holding higher qualification and executive job can live in family-friendly areas.

Tenancy Laws for Families

Families are allowed to live in residential and commercial buildings with no restrictions on specific areas after the provision of the following documents:

• Copy of title deed 
• Copy of Landlord's Emirates ID card or passport authenticated with their signature
• Copy of Tenant's passport or Emirates ID
• Copy of passport or Emirates ID of Tenant's wife
• Copy of marriage certificate 
• SEWA stamp of approval for new contracts

Fees

Tenancy contract form - AED 100

Attestation fees - 4% of the annual rent amount (min. AED 500).

Number of Occupants Allowed in a Shared Accommodation

Whether families or bachelors, the maximum number of tenants allowed in shared accommodation is as follows:

• Three people in studio apartments
• Three people in 1 BHK apartments
• Six people in 2 BHK apartments
• Nine people in 3 BHK apartments

It is mandatory to declare the number of people living in the unit before renting the property.

Rent Increase Rules Imposed by Sharjah Municipality

Sharjah Municipality oversees how much landlords can increase rent. According to the 2007 tenancy law in Sharjah, landlords can only raise the rent after the first three years of the rental contract. After that, they can increase the rent only once every two years. The rent increase must align with similar properties in the area. This law helps protect tenants from yearly rent hikes, but many people in Sharjah are not aware of it. You can visit the Sharjah Municipality website to stay informed about rental laws.

You can also check out How Much Rent Can Be Increased in Dubai in 2024.

Early Lease Cancellation by Tenants

According to the Sharjah tenancy law, a tenant cannot cancel a tenancy contract before the expiry date unless an incident happens beyond their control. Otherwise, the tenant is legally bound to stay and pay the rent until the lease ends. If the tenant still wants to end the lease, they must pay a compensatory amount to the owner, which is not less than 30% of the rental price of the remaining lease period. In case a dispute arises, the Sharjah Rental Dispute Committee (RDC) will handle and evaluate the case and give the final verdict.

To avail of the service of rent dispute settlement, the following documents are required:

• ID proof of the person making the complaint and the person being complained against
• A valid or attested tenancy contract
• Old tenancy contracts
• Petition
• Copy of title deed.
• Copy of Plot plan
• A notarised copy of the power of attorney if a legal agent represents either party

Law for Tenants Who Fail to Pay Rent

Tenants who fail to pay monthly rent within fifteen days after the due date are in breach of the rental agreement. The landlords hold the right to evict them. It is strongly recommended that tenants carefully read the rental contract before signing it to avoid potential rental issues.

Also read: What Happens If My Tenant Doesn't Pay Rent? (Dubai 2024)

Other Important Tenancy Laws in Sharjah

Here are some other important tenancy laws in Sharjah:

• The owners must perform all the required property maintenance during the tenancy period. However, minor maintenance of the unit is the tenants' responsibility.
• The owner and real estate agents cannot charge a renewal fee when renewing the tenancy agreement.
• Landlords can only cancel the rental agreement in certain situations.
  • If they need to live on the property themselves and have no other suitable place
  • If they need to demolish the property or do major maintenance that requires the tenant to leave

• According to Sharjah tenancy law, landlords must get permission from Sharjah Municipality and give the tenant a three-month eviction notice.

• If the landlord wants to sell the property or passes away, the rental lease agreement will remain the same under the new ownership.
• The rental property must meet the conditions mentioned in the lease agreement. The owner is responsible if any amenities need to be included or maintenance still needs to be done. Tenants have the right to ask for the promised maintenance or facilities.

Conclusion

Rental prices in Sharjah are lower than in Dubai, and many families and bachelors choose to live in Sharjah for this reason. Here, you can find a two-bedroom apartment for the same rent as a studio in Dubai. However, many families are unaware of the tenancy laws in Sharjah, which cause problems in the future. This blog has covered all the key Sharjah tenancy laws that every tenant must know when looking for a new rental property. 

You can also check out our blog about tenancy laws in Dubai.