New Year brings with it splendid new opportunitiesJanuary 4, 2016 10:46
Abu Dhabi’s tenant eviction law ‘unfair’
Majority of Kipp readers disagree with new legislation that will make it easier for landlords to turf out low-paying tenants.
March 21, 2010 2:16 by kippreport
Abu Dhabi is planning to implement a new property law, under which it will become easier for landlords to evict tenants. Under current legislation, tenants have the right to automatically renew leases for five years, and a rent cap allows landlords to increase the rent only by 5 percent each year, according to a report in The National.
While the existing rent cap is set to remain, the new legislation will empower landlords to remove low-paying tenants at the end of their contracts, and bring in new ones at higher rents. The new law is expected to be fully operational by November this year, the report said. The only requirement is that the landlord has to give two months’ notice for a residential property and three months’ notice for a commercial property, according to the paper.
The majority of respondents to a Kippreport poll say that the new law is unfair. While 53 percent said that rental prices in the UAE capital are already too high, another 14 percent said that the law was unnecessary as more units are coming into the market. However, 25 percent of the respondents agreed with the new law, saying that the current five-year lease renewal rights are too much in tenants’ favor. Another 8 percent said that the rule will help to establish a proper benchmark for rental prices.
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