Abu Dhabi rent regulation

While stress from unpaying tenants is now being answered with new laws, stress from rent caps in the region continues, but property owners seem unconcerned.

Being a landlord is never easy, but in the Middle East, it can be a serious source of both profit and concern. Rent increases in Dubai have been continually reported on, but the prices in Dubai are virtually nothing as compared to those in Abu Dhabi. In the year 2007, residents faced a 36.6% increase in prices, and while a rent cap is currently in place, some landlords are illegally increasing the rent, causing a serious housing problem in the region.

Head of rent dispute committee Mohammed Rashid Al Hamily said, "In some cases the increase in rent was 400 per cent." Not only does that increase cause a bit of a housing shortage, it is also contributing to inflation in the region. Fortunately, only a few landlords are causing concern, and while the committee is dealing with those individuals, few property owners are discouraged from working with tenants, especially since renting an investment property out just got a lot more attractive to Abu Dhabi landlords.

Under a new set of guidelines created by the Abu Dhabi Rent Disputes Reconciliation Committee, those who default on their rent are given just twenty days after the contract expires to renew and pay leasing fees. Those who do not will get a written warning from the Committee in which they will be ordered to pay up. The warning also goes to the police. If the renter cannot be found, an All Points Bulletin can be issued, which means he cannot leave the country. A defaulter can only leave after the final bill has been paid.

Economic projections for the region suggest that renting will remain an attractive option throughout the year.

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