In the United Arab Emirates (UAE), a growing issue involves property owners using legal notices of non-renewal as a tool to pressure tenants into accepting excessive rent increases. This tactic circumvents the legal cap on rent hikes, which is set at 5% in some emirates, forcing tenants to either vacate their homes or agree to unlawful rent increases. Legal experts and real estate professionals classify this behavior as an abuse of rights, as the notice's original purpose—to terminate the lease—is subverted to achieve a self-serving goal. To counter this, the UAE has established specialized Rental Dispute Settlement Committees, where tenants can seek legal recourse. These committees can order the landlord to renew the contract at the legal rate or award compensation if a tenant can prove they suffered damages due to this coercive practice. Experts emphasize that UAE legislation aims to strike a balance between a landlord's right to a fair return on their investment and a tenant's right to stability and protection from unjustified rent hikes. Tenants are advised to keep all communication that serves as evidence of pressure and to avoid signing any documents without legal advice. Ultimately, the law is designed to ensure stability and fairness in the rental market.
