Characteristics of a Tenancy Contract
Overview
Tenancy contracts, also called rent agreements, are among the most prevalent forms of contracts signed in Bahrain and the disputes arising out of them are among the most common heard in courts.
In addition to most businesses renting their offices or plots to conduct their work, an all-time high in real estate prices has led many young families to rent flats or small villas rather than purchase property.
With these factors in mind, one must be aware of the current legislation in force governing such agreements in terms of rights and responsibilities for both property owners and tenants.
This Practice Note will highlight the specific nature of these rights and how they apply to the relevant parties. By doing so, this Note will focus on the most important tenets of rental agreements, such as tenancy period, maintenance, rent control, and eviction.
Definitions
Real Estate Rent Law: Bahrain Law No. 27/2014 on the Issuance of the Property Lease. Article 2 of Bahrain Law No. 27/2014 has exempted its application on:
industrial plots/sites subject to Bahrain Legislative Decree No. 28/1999 with regards to the establishment and organization of industrial areas;
agricultural plots;
properties leased for hospitality/tourism purposes;