Ajman Ruler issues decree on rent regulations
Emiri decree No (11) for 2006 stipulates that the value of rent of the property should be explicitly fixed on the tenancy contract between the landlord and the tenant. The value can be paid immediately, deferred or in installments.
''If the parties to the tenancy contract forget to state the rent value in the contract, the landlord shall be entitled to the rent of equivalent as fixed by the rent disputes committee which should take into its consideration the real estate market condition,prices of building materials at time of the dispute, age of the property, and average rent of three nearby units and other factors,'' the decree says.
According to the decree, landlords can only increase value of rent after three years from the date of the lease contract went into effect or from the date of last increase in rent.
After the passing of three years, landlords can increase rent on two conditions : first, he should send a written notification to the tenant before three months at least of the expiry of the contract,and second, the increase should not exceed 20 per cent of the value of the current rent.
''An increase of over 20 per cent in the rent shall be applicable in case the landlords make expensive improvements and maintenance and state other economic justifications. He should also notify the tenant before three months of the expiry of the lease contract.
The decree states that no increase in rent shall go into force for first-time contracts which went into effect in the period from 1 January 2006 up to the date of issue of this decree.
WAM/TF 15 48 CCCCQQE