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New rent law to be enforced on February 7th

Bahrain - December 24, 2014
Rent law Bahrain

The honorary chairman of Bahrain real estate association Sheikh Abd El Rahman Bin Ali has mentioned that the new rent law issued by King Hamad Bin Eissa, King of Bahrain, will be enforced by 7th of next February.

The new law contains a number of amendments and new provisions; as rent contracts should consist with terms defined by both landlord and tenants. The law created a new office called rent contract offices which is entitled to register all rent contracts.

All new rent contracts should be registered within a month of the contract issuance at these offices, while acting contracts should be registered with 6 months of the law enforcement.

The law states the formation of dispute settlement committee to arbitrate disputes between landlords and tenants, any side can appeal on the committee decisions within 15 days of the committee decision issuance according to the new law.

The law set a new rent cap; rent increase rate mustn’t exceed by any mean 5% for residential units and 7% for business units, landlord cannot increase the rent more than 5 times within the specific contract period. The law aims to secure both landlords and tenants rights, settling pending tenancy disputes, and increasing real estate investment rate in Bahrain.

 

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