Know The Sharjah Tenancy Laws and Rules

The Emirate of Sharjah is one of the most preferred residential areas for expatriates in the United Arab Emirates. Scenic tourist attractions, such as the Al Majaz Waterfront, Al Qasba, and the Sharjah National Park, have made the city alluring to UAE residents and tourists alike. Prime locations in Sharjah are in proximity to schools, hospitals, and pharmacies, enhancing the ease of access.  the recent rise in Dubai rents has got many pondering about moving to Sharjah. However, if you are planning to shift to the emirate anytime soon as a tenant, there are certain Sharjah tenancy laws and rules that you should acquaint yourself with. Like the rest of UAE, Sharjah is also known for its meticulous implementation of tenancy contract Sharjah. 

Tenancy on Tax Rules of Sharjah Municipality

If you are a tenant in Sharjah, you are obliged to pay a 2% rental tax. Further, the tenants should also pay a 5% municipality tax based on the tenancy contract in Sharjah total value. The minimum payment for Sharjah municipality tax is AED 450 per annum.

Renewal Fees for Tenancy Contract Sharjah

The attestation fee for renewing a tenancy contract in Sharjah is 4% of the annual rent. However, the minimum attestation fee is AED 500.

Laws and Rules Governing Tenancies in Sharjah  

Let’s take a closer look at the most important Sharjah tenancy laws and rules that every tenant must know!

• How Do Tenancy Contract in Sharjah Work?

As per Sharjah tenancy laws and rules, if you plan to rent an apartment in Sharjah, the contract must be attested by the Sharjah Municipality. This is to be done within 90 days of the contract’s commencement. This can be done at Tasheel offices, Sharjah Municipality-authorised typing centres, or through a real estate agent.

• Landlord Increase in Rent Laws

The cheaper cost of living and rent rates in Sharjah seems to be the key factors inspiring UAE residents to choose Sharjah. But what if your landlord decides to increase the rent unfairly or randomly? As per the provisions enlisted in the Sharjah Law No. 2 of 2007 on Regulating the Relationship Between Landlord and Tenant in the Emirate of Sharjah, a landlord can legally increase the rent only after completing at least three years of the tenancy contract Sharjah.

Any further increments in the rent can only be implemented after the completion of another two years of the tenancy contract Sharjah. In other words, the second hike in rent can only happen after completing at least five years of the tenancy contract. Further, the rent increase thus implemented must be reasonable and comparable to other rents in the rental property’s vicinity. However, there is no maximum cap on the rent that can be collected from a tenant in Sharjah.

• Sharjah’s Bachelor Accommodation Rules

For bachelor freshers and labourers, renting a home may not be as easy as it is for other expatriates. Low-income bachelors and labourers can only rent homes in designated industrial areas. They are prohibited from renting apartments in residential areas. Professionals such as engineers and doctors are not bound by this law, even if they are bachelors.

• Accommodation Sharing Rules in Sharjah

While families are allowed to live in residential areas of Sharjah, it is pertinent to prove the identity of all family members or tenants through proper documentation.

For bachelor accommodations, the laws concerning the number of tenants allowed in different apartments are as follows:

• • A maximum of three people in studio apartments
  • Up to four tenants are allowed in one-bedroom apartments
  • Six tenants can legally occupy a two-bedroom apartment
  • Nine individuals are allowed to live in a three-bedroom apartment 

• Rent Contract Termination Before Expiration

“Can I terminate my lease before the expiry date?” is a question that might be in the mind of many Sharjah tenants. As per Sharjah tenancy laws and rules, a tenant can terminate his tenancy contract sharjah prematurely in case of force majeure events beyond their control. 

In such a case, as per a mutual agreement between landlord and tenant, the tenant might have to pay a minimum of thirty per cent of the remaining rent as compensation to the landlord. Alternatively, the tenant is eligible for proper compensation if the landlord prematurely terminates the Sharjah tenancy contract.

Factors such as the qualification of an event as force majeure and compensation amounts are determined by the Sharjah Rental Disputes Committee (RDC).

• Tenant Rules and Laws on Late Rent Payments in Sharjah

As per Sharjah tenancy laws and rules, if a tenant defaults on his/her rent payments, then the landlord has the right to evict the tenant. However, in the case of residential properties, a minimum of fifteen days must have passed from the due date before the landlord evicts the tenant. In the case of commercial properties, a minimum of thirty days must have passed from the rent due date before the landlord can evict the tenant. 

• Where Can I Renew My Tenancy Contact in Sharjah?

Once a tenancy contract Sharjah expires, you are given a grace period of 90 days to get the Sharjah tenancy contract renewed. If you fail to renew the tenancy contract within the grace period, you must pay an attestation fine to the Sharjah Municipality that ranges from AED 200 to AED 250.

Sharjah lease can be renewed digitally, at Tasheel offices, Sharjah Municipality authorised typing centres, or through a real estate agent. The contract renewal is an agreement between landlord and tenant, to be signed by both parties. The signed contract must then be submitted to the Sharjah Municipality for fee payment. 

If you want to renew the contract digitally, simply visit the Sharjah Municipality’s official website and follow the instructions. Alternatively, if you seek the help of a real estate agent to renew the lease, as per Sharjah tenancy laws and rules, the real estate agent cannot charge the tenant any service fees. 

• • Tenancy Contract Sharjah Documents

    • Original Emirates ID Card.
    • Copy of passport of the tenant and landlord
    • A copy of the visa of the tenant and landlord
    • Original Tenancy contract duly signed
    • Registration paper copy
    • SEWA Bill
    • SEWA receipt if SEWA bills haven’t been issued yet

Tenant’s Rights in Sharjah to Know

Here are a few other things to keep in mind before signing the Sharjah tenancy contract

• • If the landlord passes away or sells the property while the lease is still in effect, the initial agreement between the landlord and tenant will continue to operate.
  • As per Article 22 of the Sharjah tenancy laws and rules, a landlord can prematurely end the lease if he has permission to demolish the rental property from the Sharjah Municipality. This is also permissible when the landlord himself/his adult son wishes to occupy the property and does not own any other residential properties in that locality.
  • As per the landlord and tenant agreement, the landlord’s legal duty is to carry out regular maintenance of the rental property. However, minor tinkering and maintenance are to be done by the tenants.
  • If the property is not per the specifics mentioned in the lease, the tenant has the legal right to demand its addition.

Conclusion

Before implementing the agreement between landlord and tenant, it is pertinent to educate yourself on the nuances of Sharjah tenancy laws and rules. This can help foster a healthy landlord-tenant relationship. It is important to know your rights as a tenant so that you do not fall prey to forceful eviction or improper property maintenance from the landlord’s end. On the other hand, you must also be aware of your duties as a tenant to avoid any legal hassles in the future. This article summarises all the key Sharjah tenancy contract laws you need to know. To understand these laws in detail and avail of other facilities such as contract renewal, you can visit the Sharjah Municipality’s official website. 

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