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Tenancy Contract Abu Dhabi: A Complete Guide

Lifestyle

Tenancy Contract Abu Dhabi: A Complete Guide

Lifestyle

Published on 10 Jun 2024

Last updated 10 Jun 2024

10 min read

The UAE has one of the best-regulated global real estate markets, with laws protecting landlords and tenants, especially in Dubai and Abu Dhabi. So, if you plan to rent a property in Abu Dhabi or lease out a property as a landlord, you must understand tenancy contracts.

To manage rental contracts as efficiently as Dubai’s Ejari system, Abu Dhabi introduced “Tawtheeq”, known as attestation, in 2011, supporting the government’s Vision 2030.

Here’s a guide to understanding Tenancy Contacts Abu Dhabi, the services involved in the contract, how to use these services, how to register, and the fees involved in Tawtheeq.

What Is a Tenancy Contract in Abu Dhabi?

Tenancy Contract in Abu Dhabi

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A tenancy contract is a legal agreement between the property owner and the tenant. It is designed to protect the rights and responsibilities of both parties.

A typical tenancy contract includes the following details:

  • Lease Duration
  • Rent amount
  • Payment method
  • Maintenance responsibilities
  • Conditions for termination

Property owners and management companies must also register all tenancy contracts with Tawtheeq per local laws.

Services for Tenancy Contracts in Abu Dhabi:

These essential services are available for handling tenancy agreements in Abu Dhabi:

  1. Registration:
    After signing the tenancy contract, it must be registered on DARI to make it official. Abu Dhabi’s tenancy laws require this. The contract might need the municipality’s approval before registration in some cases involving business rules.
  2. Modification:
    If the contract needs to be changed, both parties must agree, and the changes must comply with Abu Dhabi’s tenancy laws. Landlords must give tenants at least two months’ notice for any amendments. The contract can only be modified within one week of signing.
  3. Renewal:
    The contract can be renewed within 90 days of its expiry, maintaining the same period as the previous contract. Legal professionals can provide services for renewal or termination, such as negotiating new terms and drafting termination notices.
  4. Cancellation
    A tenancy contract cannot be cancelled abruptly. It can be cancelled at the end of its term with sufficient notice. Without cancellation, it renews on the same terms. The landlord must give 90 days’ notice to evict or increase the rent. Tenants must also give 90 days’ notice to move out. Landlords can evict for reasons like property damage or the need to sell.
  5. Closure:
    If the tenant moves out without cancelling the contract, the landlord can close the contract after 30 days from the expiry date without needing the tenant’s approval.
  6. Termination by Court Order:
    Landlords can seek a court order to terminate the contract and evict the tenant for reasons such as prolonged non-payment of rent, breaches like subletting without an agreement, or illegal activities on the premises. This involves filing a case with the Rent Dispute Settlement Committee.
  7. Property Management:
    If a landlord doesn’t have the time or interest to manage the property and tenants, they can hire a property management company (PMC). The PMC will handle tasks like maintaining the building, collecting rent, handling inquiries and complaints, and managing finances.

The landlord will sign a Property Management Agreement (PMA) with the PMC to specify these services’ terms, conditions, and costs.

How Can You Access These Services Through DARI?

DARI

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Using DARI’s website or mobile app to access tenancy services is easy. Here’s how you can do it:

  1. Log in to your DARI account using any of the options given.
  2. Go to the Services page.
  3. Select the service you need and follow the steps provided.

It’s simple and quick, and you can complete your service in just a few minutes! Now, you have an overview of tenancy contracts in Abu Dhabi and the services available to you.

What is Tawtheeq Abu Dhabi?

Tawtheeq is a government system in Abu Dhabi that manages rental property contracts. It formalises tenancy agreements, ensuring transparency between landlords and tenants to prevent disputes.

When a new rental agreement is signed in Abu Dhabi, a Tawtheeq contract must be issued following the required procedures. Usually, the property owner or the real estate consultants handle this registration process. This differs from Dubai’s Ejari system, which tenants typically manage.

Why was the Tawtheeq Contract Introduced?

The system was set up in 2011 to create and record tenancy contracts in the Capital. The Tawtheeq tenancy contract was created to simplify rental transactions in Abu Dhabi. It serves as a modern digital system, providing a bilingual (English and Arabic) database of all rental information for villas and apartments in the city. This new system aims to streamline the leasing process and ensure accurate information, helping to prevent unnecessary conflicts.

What are the Benefits of Tawtheeq?

  • Legal Protection: Ensures rental agreements are legally recognised.
  • Dispute Resolution: Provides a framework for resolving rental disputes.
  • Transparency: Increases transparency in the rental market.
  • Data Accuracy: Keeps an accurate database of rental properties

How to Register for a Tenancy Contract in Abu Dhabi?

The process for registering tenancy contracts in Abu Dhabi, called Tawtheeq, is similar to Dubai’s Ejari. However, in Abu Dhabi, the property owner or their real estate consultant handles the registration rather than the tenant. The good news is that Tawtheeq registration is now fully online. Landlords and property managers must create an account on the Department of Municipalities and Transport website to register their property.

All registration steps for Tawtheeq are done on the SmartHub platform. The applicant must fill out a standard form for all tenancy contracts, providing necessary details about the rented property.

The landlord or management company is responsible for registering the tenancy contract with Tawtheeq. According to the Department of Municipalities and Transport, only landlords can register a property for Tawtheeq. Reviewing the tenancy contract usually takes about six (6) minutes, depending on the availability of property information in the Tawtheeq system.

Tawtheeq Fees:

Tawtheeq Abu Dhabi registration costs AED 900 per property and AED 5 per unit, and registering a tenancy contract costs AED 50 per year.

Different fees apply to landlords and tenants. The initial registration fee is AED 900 per property, which the landlord pays. Additionally, there’s a Leasable Unit Registration fee of AED 5.

For a new tenancy contract, the registration fee is AED 50 per year, also paid by the landlord. Any changes, including early cancellations, do not have a fee. Renewing a Tawtheeq costs AED 50 per year, again payable by the landlord. The registered Tawtheeq contract must be linked to your electricity and water services with the Abu Dhabi Department of Energy. Other property transactions and utility services also require Tawtheeq registration.

Here’s a table for better understanding:

ServiceCostPayerNotes
Property RegistrationAED 900 per propertyLandlordOne-time fee
Leasable Unit RegistrationAED 5 per unitLandlordOne-time fee
Tenancy Contract RegistrationAED 50 per yearLandlordAnnual fee
Contract RenewalAED 50 per yearLandlordAnnual fee
Contract Modifications (including cancellations)No feeN/ANo charge for changes
Link to Electricity and Water ServicesRequired with registrationN/AMust be linked to the Abu Dhabi Department of Energy services

Required Documents For Tawtheeq Abu Dhabi:

CategoryRequired Documents
For Homeowners/Landlords– Account opening form – Valid passport copy of the owner and authorised signatory or representative – Valid Emirates ID copy for the authorised signatory or representative – Family book copy (if the owner is a UAE national) – Power of attorney copy for the property owner’s legal representative – Trade license copy (if owned by a company) – Notarized signature copy of the property owner (if opted for) – If a company owns the property: – Soft copy of the owner’s tenancy contract and special terms and conditions, with a signed hard copy – Chamber of Commerce and industry membership copy – Notarized power of attorney for signature authorisation or company’s Articles of Association or signed authorisation letter
For Property Managers/Management Company– Account opening form – Trade license copy – Chamber of Commerce and industry membership copy – Notarized power of attorney for signature authorisation or company’s Articles of Association or authorisation letter – Valid passport copy of the authorised signatory (company’s legal representative) – Valid residence permit copy for authorised signatory – National ID card copy for authorised signatory – Soft copy of the company’s tenancy contract (Arabic and English or Arabic only), with a signed hard copy of special terms and conditions (if any)

Final Takeaway:

That’s all about the Tenancy Contract in Abu Dhabi. Understanding and managing tenancy contracts in Abu Dhabi is important for tenants and landlords to have a smooth rental experience. The Tawtheeq system helps make the rental market clear and efficient by handling tenancy agreements. By following the rules for registration, changes, renewal, and cancellation through services like DARI, both parties can protect their rights and avoid problems. Tawtheeq provides legal protections and clear processes, making renting and leasing properties in Abu Dhabi simple and secure.

If you want to rent or lease a property in Abu Dhabi, use the Tawtheeq system to safeguard your rental journey. Visit the DARI platform today for more information and to get started!

Stay tuned for more information like this.

Frequently Asked Questions:

Q. What is the notice period for tenants in Abu Dhabi?

Before cancelling a lease contract in Abu Dhabi, it’s important to understand the laws related to termination. According to Law No. 4 of 2010, which regulates tenant-landlord relationships, tenants can terminate their contract early by giving the landlord a 60-day notice.

Q. How to get a tenancy contract in Abu Dhabi?

You can complete all registration processes for Tawtheeq through the SmartHub platform. The applicant must fill out a standardised form with details about the rented property. The landlord or management company is responsible for registering the tenancy contract with Tawtheeq.

Q. Can a landlord increase rent every year in Abu Dhabi?

Abu Dhabi has a 5% cap on annual rent increases. Landlords must inform you of any increase at least two months before your lease renewal. While tenancy contracts can be for any period, they typically last for a year.

Q. Is Ejari applicable in Abu Dhabi?

Ejari, meaning ‘my rent’ in English, is a system used in Dubai by the Real Estate Regulation Authority (RERA) to manage tenant-landlord relationships. In Abu Dhabi, a similar system called Tawtheeq is used. Tawtheeq means ‘attestation’ in Arabic.

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ABOUT AUTHOR

Pragya is a content writer with over 2 years of experience who thrives on the power of storytelling. She crafts clear, engaging content that resonates with audiences and transforms ideas into fresh, compelling pieces. When she's not writing, Pragya might be found curled up with a good book, exploring a new coffee shop, or seeking inspiration in nature. This constant curiosity fuels her creativity, allowing her to bring fresh perspectives to every project.

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