No rent hike for two years after first increase in Sharjah

Landlords in Sharjah are not allowed to raise rents for two years post the first increase, according to Sharjah Municipality.

“The lessor shall not increase the rent again until after the expiration of two years from the date of the first increase, the municipality, @shjmun, said in a tweet.

The first increase is allowed only after the expiry of three years from the date of signing of the first lease agreement.

In June, the Municipality tweeted, saying a landlord was free to fix a new rent post the three-year rent contract with a tenant.

“It's up to the landlord to increase the rent as he/she deems suitable,” it said, adding, “but if you find the increase unreasonable, you can file a complaint at the rent regulation department to decide the proper increase.”

The Municipality further clarified, through a tweet, that the maintenance of the building was a commitment from the owners of the buildings to preserve the aesthetic appearance of the property and had nothing to do with the increase in price of apartments.

In the second quarter 2014, rents rose by three per cent quarter-on-quarter, with the year-on-year rate of increase dropping to 31 per cent from 38 per cent in the first quarter, Asteco Property Management, said in a report.

Al Khan saw a 7-per cent increase with one-and two-bedroom units leasing for up to Dh45,000 and Dh55,000 respectively. Rates for Al Majaz and Al Nahda rose by six and five per cent, respectively, with leases for one- and two-bedroom ranging between Dh45,00 and Dh55,000 and Dh45,000 and Dh60,000.

In its Spring 2014 outlook, Cluttons, a real estate consultancy, had said arbitrary rent hikes by landlords in Sharjah could lead to increase in tenants filing complaints with Sharjah Municipality’s rental dispute committee.

“The demand pressures on the limited supply are translating into a rise in the number of complaints lodged with Sharjah Municipality over what tenants perceive to be unreasonable rent increases at renewal,” the consultancy had said.

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