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His Highness Dr. Shaikh Sultan bin Mohammed Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, on June 6 issued law No. 2 of 2007, regulating relations between landlords and tenants.
As per the new tenancy law, the landlords cannot increase the rent before the lapse of three years since the commencement of the contract, and every two years afterwards.
Most of the residents Khaleej Times spoke to, hailed the Sharjah government’s initiative to impose a control on the landlords who resort to increasing the rents erratically, almost every year. However, some others stressed on the immediate need for a rent cap, rather than preventing the landlords from hiking rents before the lapse of the three years from the signing of the tenancy contract.
Residents and tenants of commercial units in the emirate have complained that the new law does not provide any ceiling on the current rents, so the landlords can hike rents by even more than 100 per cent. Landlords and real estate companies, on the other hand, have pointed out that the new tenancy law is in line with the new developments in the emirate, and will serve the interests of both landlords and tenants.
Speaking to Khaleej Times, Hafiz Al Huairis, a resident of Sharjah whose tenancy lease is slated for renewal on June 16, said the new law would encourage his landlord to announce a steep hike in the rent. “I am expecting my landlord to hike the rent from Dh30,000 per annum to Dh60,000, something which I will not be able to afford. A fixed rent cap should be stipulated by an additional Article in the law,” noted Huairis.
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