The tenancy law in Ajman will be "soon" amended, allowing landlords to increase rent by 7 per cent a year rather than 20 per cent every three years, Reuters reported on Saturday, citing a government official.

 

The adjustment will apply to residential units, while the percentage of rent hikes for commercial space will be decided later, the head of the emirate's Rent Disputes Office, Othman Abu al-Shawarib was quoted as saying.

 

The amendments will specify the percentage of rent increase, which was set by the existing law at 20 per cent every three years. Landlords will have the right to increase the rent by 7 per cent every year for residential accommodation, according to a report.

 

The amendments will grant landlords the authority to seek eviction of the tenant after a fixed number of years that has not been specified yet, it added.

 

Abu Dhabi and Dubai, however, both tightened the rent cap to 5 per cent from 7 per cent, to help curb inflation, which is to a large part driven by soaring rents.

 

Inflation in the UAE hit a 19-year high of 9.3 per cent in 2006 and probably reached 10.9 per cent last year, the National Bank of Abu Dhabi said last month.

 

In a bid to catch up with its neighbours, Ajman, the second-smallest member of the UAE by population, is preparing new freehold laws and regulations similar to those in Dubai, according to press reports. (Reuters)