The United Arab Emirates is thriving in its real estate sector. As the expats are attracted to the golden opportunities for businesses in the UAE, the multicultural country has to ensure standard accommodation. However, the purchase of property has been defined for the expats and locals. The freehold areas can have 100% ownership of the expat. Therefore, foreign investors have business operations in those areas.

The rental laws in the UAE are made to ensure the protection of landlords’ and tenant’s rights. Like Dubai and Abu Dhabi, Ajman is getting populated with expats from all over the country. It has attracted individuals to start amazing business operations just like Dubai businesses. The rental laws in Ajman are implemented to have good relationships between the landlords and tenants. Hence, it is important to understand the legalities of the rental agreements.

Any rental agreement in Ajman has to abide by the rental laws. Those laws are overseen by relevant authorities:

1. Ajman Rental Law (Amiri Decree No. 3 of 2009)

The law defines the role, rights and responsibilities of the property owners as well the tenants. Under this law, the rental agreements are created, such as eviction, increased rents. Moreover, any conflict between the landlord and the tenant is also resolved through this law.

2. Ajman Real Estate Regulatory Agency (ARRA)

There is a regulatory authority in Ajman that ensures the real estate transactions comply with the rental laws. However, Ajman Real Estate Regulatory Agency (ARRA) oversees the disputes of tenancy. They have the discretion to make an increase in rents and changes to the rental contracts as per the improvised rental laws in Ajman.

3. UAE Civil Transactions Law (Federal Law No. 5 of 1985)

The UAE Civil Transactions law helps landlords make rental and contractual agreements to ensure healthy relations with the tenants. The law provides legal solutions to conflicts within rental agreements. Additionally, the law also ensures fair rental transactions to avoid conflicts in the future.

There are a few aspects of rental laws in Ajman. Without these aspects, the rental agreement is null and void. Valid Rental agreement in Ajman contains:

• Details of the property (It means details about location, size, etc).
• Tenant and landlord information (It means their full names, contact details, Emirates ID cards etc).
• Rent amount
• Due Dates
• payment Terms
• Duration of the lease (typically 1-3 years).
• Security deposit amount

Most importantly, all those rental agreements must be approved by ARRA:

If you are involved in a rental agreement, it is important to make a document that has all the details related to the property, its owner and buyer. However, the amount of rent within the due date and payable after the due date should also be mentioned. The property shall be leased for at least 1 year or 3 years. Besides that, the amount and conditions for security deposits shall be added along with the responsibilities of maintenance between the landlord and the tenant.

• Rent Amount

The rent amount is increased after some time due to the economic inflation in the world. To increase the rent in Ajman, the property owners have to follow the guidelines provided by ARRA. The threshold of rent is based on the government rules and conditions of the real estate business. Importantly, the tenant must be notified three months prior about the increase in rent amount. The dispute over the rental agreement can be discussed with lawyers in Ajman.

• Security Deposits

The security deposits in Ajman are collected by the landlords to ensure protection against any damages to their property or if the rent remains unpaid. However, when the tenancy agreement is finished, the landlord must return the security deposit after confirming the damages or no damages to the property. In case of any damages to the accommodation, the property owner will take the amount from the security deposit for compensation. However, if the deposit has some issues or a conflict, the lawyers in Ajman can help you with the legal complaint.

• Rights and Responsibilities of Landlords and Tenants

Without defining the roles and rights of the landlords and tenants, the rental laws are weak in Ajman. The rights of tenants include their safety in the accommodation. The property should be clean and functional. However, the rent shall be increased as per the rental laws in Ajman, whereas an unfair eviction can be compensated if a lawyer in Ajman is hired. Lastly, the security deposit shall be given to the occupant whenever the rental contract is ended. The property owner is obligated to provide an accommodation that is undisputed and registered with ARRA. They have to ensure good maintenance and safe property for the tenant.

• Eviction Rules in Ajman

To terminate the lease or to evict the property, the landlord has to follow a legal process. An eviction from the property is possible if any illegal activities by tenants were conducted in the property, or they have not paid the rent in due time or the landlord may want to sell their property or use it for themselves. Any important repair or construction may also lead to eviction. The eviction is possible within a year if the reason is selling or using the property themselves.

The tenants have the right to make a legal complaint if they were not timely informed about eviction. However, the landlord has to prove the reason for eviction, especially if they have seen illegal activities happening on the property. If the tenant has a dispute over the rental agreement or accommodation, they can discuss the issue with the Rental Dispute Settlement Committee for justice.

There are legal solutions to resolve the rental issues in Ajman. The relevant authorities can sit together and discuss the conflict whether the complaint is initiated by the landlord or the tenant. However, the lawyers in Ajman understand the duties and rights of both, tenants and landlords. Therefore, they will make a legal solution as per the case to satisfy both sides, if possible. In such cases, mediation services shall be hired before the case goes into Ajman courts.

The tenants can avoid disputes over the rented property if they have read the terms and conditions in the rental agreement. Additionally, they should make rent payments on time. Everything shall be documented and conveyed in a written form to the landlord because that would be evidence of communication in your case. If you are a landlord in Ajman, you can avoid conflicts by registering the property with ARRA, following the rental laws and maintaining the property as per the rental rules and regulations. Hiring lawyers in Ajman could be helpful in rental agreements as they can draft the contract for you as per the rental laws.

Additional Reading: Rental Laws in Ras Al Khaimah