RAK regulates tenancy agreements :: Gulf News

Fee for service. The UAE does not have taxes. Three quarters of its population are non-nationals. Without fee-for-service the government would be in the peculiar position of providing services to a population that is mostly non-national.

Notice, though, that like taxes, the fees described below are mandatory if you rent an apartment. You cannot decline the service.

The tenancy contracts should be attested by the Ras Al Khaimah Economic Department, which will take 5 per cent of the rent as fees.

"The fees will help protect the tenants," Al Shamsi said. "Tenants can be sure that their rents will be untouched for three years, with the help of the law," he said.

The new law mainly aims to protect tenants from greedy landlords.

Al Shamsi asked tenants and landlords not to play games when drafting tenancy contracts by reducing rents to minimise the fees to be paid to the department.
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The new tenancy contract, once approved, will be valid for three years and the landlords will not be allowed to increase rents during the period.

Landlords violating this law will face tough penalties.

In an inflationary environment, a regulation that constrains contracts to be long term will have the effect of causing a jump in the monthly rent at the time it comes into effect. Landlords will be blamed, but the blame lies with the (unintended) consequence of the regulation.