Sharjah Rent Increase: Know Your Rights

Rent Increase Regulations in Sharjah: When is it Justified and When Not?

The United Arab Emirates' rapidly developing city-state, Sharjah, is home to many long-term residents. Among those living in rented properties, many hold rental agreements that have provided security over the years. However, recently, more residents have experienced unexpected or frequent rent increases, raising questions about legality.

We will discuss the laws concerning rent increases in the Emirate of Sharjah, what rights tenants have, and what can be done if a landlord raises rent unlawfully.

The Three-Year Rule: What Does the Law Say?

In 2024, Sharjah enacted Law No. 5 governing property rentals, clearly outlining the conditions for rent increase. According to Article 16 of the law:

1. A landlord cannot raise rent within three years from the date the tenancy began—unless mutually agreed upon by the tenant and landlord.

2. If a tenant consents to a rent increase within the three-year period, the landlord cannot raise the rent again for another two years.

3. After the three-year or following two-year periods, rent can only be adjusted based on the "fair market rate," defined by enforcement guidelines.

This legislation provides stability in rent charges, offering tenants protection against frequent increases.

What Can a Tenant Do if a Landlord Violates the Rules?

If a landlord ignores the law and attempts to increase rent within three years, or two years after an initial increase, the tenant is entitled to file a complaint.

Consider these steps:

Communication with the landlord: Initially, it is advisable to contact the landlord in writing, referring to Law No. 5 of 2024. It may be that the landlord was unaware of specific legal details.

Seek an amicable resolution: If the landlord is open to discussion, a new lease term can be negotiated that respects the relevant law.

File a complaint with the Sharjah Rental Dispute Settlement Center: If negotiations fail, the tenant can take legal action and report the case to the Sharjah Rental Dispute Center, which is the authority for such matters.

Important Information for Tenants

Sharjah is one of the few Emirates with such clear and detailed regulations concerning rent increases. While, in Dubai, for example, allowable increases are calculated based on a dynamic evaluation system (RERA rental index), Sharjah defines fixed periods during which rent must remain unchanged—unless by mutual agreement.

This regulation is particularly advantageous for tenants planning to stay in the city long-term without facing yearly new expenses.

How to Interpret "Fair Market Rate"?

The law does not grant landlords free rein even after the three-year or two subsequent two-year cycles. Rent cannot be arbitrarily increased but should align with the "fair rent" based on the property's size, location, condition, and local market conditions.

The enforcement guidelines detail how this should be calculated, and information is often available on official platforms operated by the Sharjah municipality for market comparison prices.

What Happens if a Tenant Signs a New Lease?

It is important to know that if a tenant—even under pressure—signs a new contract with increased rent, a valid agreement is formed. In this case, it is no longer possible to claim a legal violation. It is always recommended to seek legal advice before signing a contract, especially if its new terms seem suspicious or disproportionate.

Summary

Sharjah's rental laws clearly define rules about the frequency and extent of rent increases. The three-year protection period, followed by two years of stability, serves the interests of tenants and ensures predictability in housing costs.

Tenants who feel their rights have been infringed can pursue legal action and file complaints with the Sharjah Rental Dispute Center. However, it is also important for tenants to be informed and always check the contract they sign. Even a contract offered illegally can be valid once signed, and making changes afterward can be challenging.

Housing security in Sharjah is thus operated within well-regulated legal frameworks—the question is whether residents are aware of their rights and exercise them when necessary.

(The article is sourced from Article 16 of Law No. 5 of 2024 on property rental.)