building

FAQs

What are the terms and conditions for getting a property on lease?

The procedure for Tenancy Contracts starts with the moment the Landlord and the Tenant agree to form a contractual relationship between them. This occurs when the parties agree on:

  • The period of the tenancy: There is no prescribed period for tenancy as per the law. This is completely between the landlord and the tenant. The norm for residential properties is that the period is for a duration of one year
  • Otherwise prescribed in the contract between the Landlord and the Tenant. For example, the Landlord may clearly stipulate in the contract that at the end of the tenancy he wants the tenant to vacate the property
  • The Landlord or the Tenant fail to fulfill their obligations under the Tenancy Law. For example, the tenant fails to pay the rent due or the landlord fails to hand over the property in a suitable condition
  • The Landlord sends a Notice for Eviction “NOE” to the Tenant two months prior to the date of the lease’s expiry in the case of residential properties; and three months prior to the to the date of the lease’s expiry in the case of properties for commercial, industrial or professional purposes (Article 20(3)) of the Tenancy Law)
How much is the security deposit?

That would depend upon the rental value of the property. Usually, it is anything from AED 5,000 upwards. This deposit is refundable at the end of the tenancy agreement in accordance with the terms and conditions of the Tenancy Contract.

What is Tawtheeq?

In line with Abu Dhabi Government’s strategy and based on its Vision (2030), Al Ain City Municipality has launched “Tawtheeq” project for the purpose of registering leasable property details and tenancy contracts using cutting edge technologies. Tawtheeq’s objective is to regulate real estate market through effective and accurate data collection of all properties and tenancy contracts.

What does tenancy contract cancellation mean?

There are two types of tenancy contract cancellations: 

  • Cancellation through mutual consent of the two parties: It means the cancellation of the contracting relationship between a property owner and a tenant due to the expiry of the contract without prior notice to renew the contract or the cancellation of the tenancy contract before the contract expiry against paying a fine. 
  • Cancellation by a judicial ruling: It means the cancellation of the contractual relationship between a property owner and a tenant by virtue of a ruling issued by the Tenancy Dispute Settlement Committee when either party submits a complaint claiming the other party's non-compliance with the regulations and tenancy laws applicable in the Emirate of Abu Dhabi City.
Is it possible to register a tenancy contract if the property is not registered in the Tawtheeq system?

If the property is not registered in "Tawtheeq" System, the data shall be registered via the traditional method (temporarily) to ensure the smooth flow of necessary transactions of the property owner. The Municipality shall contact the property owner to complete the procedures of account opening in the system, followed by registering of the property details and the existing tenancy contracts.

Who decides the rent disputes?

The Rent Dispute Settlement Committee “RDSC”, located in Al Nahyan Complex, is a competent authority to hear all rent disputes in Abu Dhabi.

What is the procedure for evicting a tenant?

The implementation of the Abu Dhabi Executive Council Decision No. 32 for 2012 states that in the event the Landlord does not wish to renew the lease, or wishes to amend the conditions of the lease, the Landlord only has to notify the Tenant in writing, two months prior to the date of the lease's expiry in the case of residential properties; and three months prior to the to the date of the lease's expiry in the case of properties for commercial, industrial or professional purposes.

What are the payment terms for leasing a property?

The standard payment terms are usually one, two or quarterly payments depending on the preference of the Landlords. Having said that, many landlords are more likely to agree to a lower rent price if the tenant makes one full payment for the property in advance. Once the initial terms are agreed upon, the Parties will then sign a Tenancy Contract.

The rent of the property will be the same throughout the contract or will there be a hike?

The Landlord and Tenant Law allows the parties to a lease to agree and fix the rent for the lease term. If the rent is not fixed then the landlord has the right to an annual rent increase. The right is now subject to a maximum annual increase of 5% of the existing rent.

BEYOND LIVING