Khaleej Times

ABU DHABI, July 17:  — The Ministry of Justice and the Department for Social Services and Commercial Buildings in Abu Dhabi (DSSCB) are drafting a new tenancy law aimed at tackling growing concerns and disputes over house rents.

The frequent demand by landlords for hikes in rents of residential units have plunged many defaulting tenants into lawsuits due to their inability to pay the ever-increasing rents.

A responsible source told Khaleej Times that the new bill would waive the increase in rent every two years by 20 per cent.

“The demand by a majority of landlords for a 20 per cent increase every two years is one of the main factors pushing rents upward in Abu Dhabi. The low availability of residential units has intensified the problem,'' he noted.

“The new law will give the landlord-tenant contract the upper hand. It will leave the determination of the value of rent to market demand and supply forces,'' he added.

According to the source, a judicial panel will also be set up to arbitrate any rent disputes within a maximum period of two months.

The law authorises the panel to look into any rent disputes whether between the landlords and tenants and/or any other bodies.