Renewing a tenancy contract in Sharjah involves more than agreeing on the next rental period. The renewed lease should reflect the agreed rent, payment terms and other conditions and should be certified through the applicable Sharjah Municipality process.
Under Sharjah Law No. 5 of 2024 on Property Leasing, the landlord is responsible for certifying the tenancy contract or any renewal and paying the applicable fees within 15 days from the date the contract is drafted.
Why Is Tenancy Contract Renewal Important?
A properly renewed and certified tenancy contract provides an updated record of the rental relationship between the landlord and tenant. It confirms important details such as the property, rental period, annual rent, payment terms and agreed conditions.
A current certified contract can also be required when the tenancy document is used for government transactions or other services in Sharjah. Under the current leasing framework, government entities in the emirate may refuse an uncertified lease contract for transactions or services, subject to the applicable rules.
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When Should You Renew a Tenancy Contract in Sharjah?
The parties should review the tenancy terms before the existing contract expires. This gives the landlord and tenant enough time to deal with any proposed rent change, revised payment terms or other amendments.
There is no general rule requiring every Sharjah tenancy contract to be renewed exactly 30, 60 or 90 days before expiry. The relevant notice or renewal position can depend on the contract and the issue involved.
Once the renewed contract is drafted, however, the current Sharjah leasing law requires the landlord to complete the required certification within 15 days.
How to Renew a Tenancy Contract in Sharjah
Step 1: Review the Existing Tenancy Contract
Before preparing the renewal, check:
- Contract expiry date
- Current annual rent
- Payment schedule
- Renewal provisions
- Responsibilities of the landlord and tenant
- Any special conditions that need to continue or change
Step 2: Agree on the Renewal Terms
The landlord and tenant should agree on any changes before the renewed tenancy contract is finalised.
If the landlord proposes a rent increase, the increase should comply with the applicable Sharjah rental rules. Any agreed change to rent, payment dates or other contractual terms should be recorded clearly in the renewed contract.
Step 3: Prepare the Required Documents
Sharjah Municipality currently lists a copy of the previous tenancy contract or the electricity bill receipt as the core supporting document for its lease-renewal service for individuals and businesses.
The Municipality also states that an expatriate tenant’s residence visa must be valid. Additional identification, company or authority documents may be required depending on the tenant, property and method of submission.
Where changes, deletions or amendments are made to the tenancy contract, they should be approved by both parties to the rental relationship.
Step 4: Finalise the Renewal Agreement
The renewed agreement should accurately record the agreed rental amount, term, payment structure and responsibilities of each party.
Where the parties need additional clauses or a separate agreement rather than simply renewing the standard tenancy terms, legal document drafting support may be useful before the documents are signed.
Step 5: Complete Sharjah Municipality Certification
The renewed contract should then be submitted through the applicable Sharjah Municipality tenancy contract renewal service.
The Municipality currently provides renewal through its website and an in-person service channel. For renewals completed through the website, the Municipality states that the renewed contract term is one year.
This municipal certification process should not be confused with notarisation, MOFA attestation or document legalisation. Those are separate procedures that may apply to other documents or different use cases.
How Much Does Tenancy Contract Renewal Cost in Sharjah?
Sharjah Municipality applies renewal fees according to the type of tenancy and annual rental value.
The Municipality’s current service information lists:
- an annual-rent-based fee for residential contracts, subject to a minimum of AED 500;
- 5% of the annual rent, with a minimum of AED 500, for commercial contracts;
- 3% of the annual rent, with a minimum of AED 1,000, for investment contracts; and
- additional service-centre, research and collection charges where applicable.
The amount payable should be checked through the Municipality for the specific contract because the final fee depends on the tenancy type, annual rent and service channel used.
Can the Landlord Increase the Rent at Renewal?
Not automatically.
Under Sharjah Law No. 5 of 2024, the landlord generally may not increase the agreed rent before three years have passed from the start of the rental relationship, unless the landlord and tenant agree otherwise.
If the tenant accepts an increase before the end of that three-year period, the landlord generally may not increase the rent again until two years have passed from the date of that increase.
After the applicable period has expired, the law provides that an increase should be based on the fair rental value in accordance with the applicable rules.
This means a tenancy renewal does not itself give the landlord an unrestricted right to increase the rent.
Who Is Responsible for Certifying the Renewed Contract?
Under the current Sharjah leasing law, the landlord is responsible for certifying the lease contract or its renewal and paying the applicable fees within 15 days from the date the contract is drafted.
If the landlord refuses to complete the certification within the required period, the legislation provides a route for the tenant to seek an order compelling the landlord to certify the contract.
Failure to certify can also result in the applicable certification fees and an administrative penalty.
What Happens if There Is a Dispute During Renewal?
Disagreements can arise over matters such as:
- a proposed rent increase;
- refusal to renew or certify the contract;
- payment terms;
- unclear or disputed contract clauses;
- maintenance responsibilities; or
- other landlord or tenant obligations.
The first step should be to review the existing contract and the current Sharjah rental rules to identify the actual point in dispute.
Where the parties cannot resolve the issue, the matter may fall within the jurisdiction of the Rental Disputes Centre in the Emirate of Sharjah, depending on the nature of the dispute.
When Might Separate Notary or Document Support Be Needed?
A standard Sharjah tenancy renewal is primarily a Municipality rental-contract process. It should not be treated as a general notarial transaction.
Separate document or notary support may become relevant where, for example:
- one party is acting through a Power of Attorney;
- a separate declaration or undertaking is required;
- additional contractual terms need to be drafted;
- a signature or document requires a separate notarial act; or
- a tenancy-related document will be used for another legal or overseas purpose.
Where a landlord or tenant cannot personally deal with the transaction, the authority granted under a Power of Attorney should be checked to make sure it covers the intended property or tenancy matter.
Frequently Asked Questions (FAQ)
How do I renew a tenancy contract in Sharjah?
The landlord and tenant should agree on the renewal terms, prepare the required records and complete the renewal through the applicable Sharjah Municipality tenancy contract service.
Can a Sharjah tenancy contract be renewed online?
Yes. Sharjah Municipality currently provides an online renewal channel. The Municipality states that contracts renewed through the website are issued for a one-year term.
Who is responsible for certifying the tenancy renewal in Sharjah?
Under Sharjah Law No. 5 of 2024, the landlord is responsible for certifying the lease or its renewal and paying the applicable fees within 15 days from the date the contract is drafted.
Can my landlord increase the rent when the tenancy is renewed?
Not automatically. The current Sharjah rental law generally prevents an increase during the first three years of the rental relationship unless the parties agree otherwise.
What happens if the tenancy contract is not certified?
An uncertified contract can cause problems when it is used for government transactions. The landlord may also face the applicable certification fees and an administrative penalty, and the tenant may seek an order requiring certification.
Does a Sharjah tenancy renewal need notarisation?
A standard tenancy renewal is handled through the Sharjah Municipality rental-contract process and does not automatically require separate notarisation. A notarial process may be relevant for another document, such as a Power of Attorney or declaration.
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Keep the Renewal and Certification Up to Date
Renewing a tenancy contract in Sharjah is primarily about keeping the rental relationship properly documented and certified. Before the existing term ends, both parties should review the rent, payment arrangements and other terms and resolve any proposed changes.
The current rules also make timely certification important. Once the renewal is drafted, the landlord should ensure that the Municipality process is completed within the applicable period rather than treating the signed agreement alone as the final step.
If a separate document such as a Power of Attorney, declaration or additional agreement is required in connection with the tenancy, contact our team to check the appropriate drafting or notarial process.
