Sharjah Tenants Cannot be Evicted for Refusing Rent Hikes Before Three Years Under New Tenancy Law

Tenants in Sharjah are protected from arbitrary rent increases and eviction under the emirate’s updated tenancy law, offering greater clarity on disputes between landlords and tenants over rental revisions.

Under Law No. (5) of 2024 concerning the leasing of real estate in the Emirate of Sharjah, landlords are restricted from increasing the agreed rent for the first three years of a tenancy unless the tenant expressly agrees to the revision. The law has introduced a clear framework aimed at ensuring stability for tenants while regulating how and when rental adjustments can be made.

Article 16 of the law states that a landlord may not impose any increase in rent before the expiry of three years from the date the tenancy begins, unless both parties mutually agree otherwise. This means tenants who are still within the initial three-year period of their lease are under no legal obligation to accept a rent hike proposed by the landlord.

The law further clarifies that if a tenant voluntarily agrees to a rent increase before completing the three-year period, the landlord cannot seek another increase for at least two years from the date of that adjustment. This provision is intended to prevent repeated revisions within short intervals and to provide tenants with a reasonable degree of financial certainty.

After the expiry of these legally protected periods, any increase in rent must be aligned with what the law describes as the “fair rent allowance”. The executive regulations are expected to determine how fair rent is assessed and what standards will be used to calculate permissible increases.

The law also addresses the question of eviction in cases where tenants refuse a proposed rent increase. Article 13 makes it clear that a residential tenant cannot be evicted before the completion of three years from the start of the lease, except for specific reasons expressly provided by law.

Importantly, refusing to accept a rent increase is not one of those grounds. This means a landlord cannot legally compel a tenant to vacate a residential property simply because the tenant has declined a higher rent demand within the protected period.

The updated Sharjah tenancy law is seen as a significant step towards balancing the rights of landlords and tenants, particularly in a market where rental disputes are common. For tenants, the law reinforces security of tenure and shields them from sudden financial pressure, while for landlords it establishes a regulated mechanism for future rent revisions.

 

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