Recent changes to the Abu Dhabi rental law

On February 10, His Highness Sheikh Khalifa Bin Zayed Al Nahyan issued Law No 4 of 2010 which amends Law 20 of 2006 relating to the Rent of Properties and the Regulation of Landlord and Tenant Relations in the Emirate of Abu Dhabi.

The new law contains two important amendments which may significantly affect the rental landscape in Abu Dhabi. Landlords and tenants should be aware of these changes and how they will affect their existing leasing arrangements.

Removal of Five Year Right of Occupation

Previously, tenants had a right to renew their lease on the same terms and conditions until they had been in occupation for at least five years. This right of renewal was subject to the tenant complying with their lease terms, and was subject to annual rent increases being capped at 5%. Assuming that the tenant complied with their lease, a landlord could only end the lease prior to the expiry of the five year period under fairly limited circumstances.