Rent Increases in Kuwait (Ajrat Al-Mithl): A Legal Guide for Landlords
Understand the strict rules governing residential rent increases in Kuwait, the mandatory 5-year period, and how 'Ajrat Al-Mithl' is determined by specialize...
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
Controlling rent increases is one of the most rigorously regulated subjects under Kuwaiti law, designed to protect tenants from market volatility while ensuring stable, long-term returns for landlords and investors. The law strictly prohibits arbitrary rent hikes. The core provisions governing rent increases are established in Decree Law No. 35 of 1978 (effective 16 August 1978) and remain in force, recently strengthened by Decree Law No. 95 of 2024 to expedite the enforcement of rental contracts.
Legal DisclaimerThis guide provides general legal information. Lease laws can change. Always consult a licensed notary or lawyer in this region.
The Golden Rule: The Five (5) Year Period
Article (11) of the Kuwaiti Rent Law categorically establishes a temporal protection period preventing any alteration to the rental value:
"The lessor may not increase the rent, nor may the lessee demand its reduction, before the lapse of five (5) full years from the date of the commencement of the lease or from the date of the last modification made to the agreed rent."
- Mandatory Nature: Any clause inserted by the landlord into the lease agreement allowing a rent increase before the expiration of 5 years is considered absolutely void (null and void) as it violates public policy.
- Automatic Renewal: During these five years, the tenant's contract is automatically renewed annually (or according to its term) by the force of law at the identical rental value, provided they continue paying the monthly rent.
Demanding a Rent Increase After 5 Years (Ajrat Al-Mithl)
Once the immunity period (five years) expires, the landlord acquires the legal right to demand an increase in the rental value to align with current market rates. This path takes two forms:
1. Amicable Settlement and Direct Agreement
The landlord issues a notice or negotiates with the tenant regarding the new value (e.g., an increase of 50 KD). If the tenant agrees and signs an addendum or a new contract, a new "5-year protection period" begins from the date of this consensual increase.
2. Judicial Solution (Ajrat Al-Mithl Lawsuit)
If the tenant refuses the requested increase and the landlord deems it unfair based on surrounding market prices, either party (usually the landlord) has the right to resort to the Ministry of Justice Experts Department (mandated by the Rental Court) to file an "Ajrat Al-Mithl" (similar rent estimation) lawsuit. Under Decree Law No. 95 of 2024, appeals against these judgments are now heard by the Court of First Instance sitting in its appellate capacity to ensure faster resolution.
How is 'Ajrat Al-Mithl' Determined?
When a landlord resorts to the judiciary, the court appoints an "engineering and real estate expert" to inspect the apartment or residential unit. The expert relies on several factors to estimate the fair adjudicated rent (Ajrat Al-Mithl):
- The location and position of the investment building and its proximity to services (schools, cooperative societies).
- The area of the residential apartment and the number of rooms or attached facilities (exclusive parking spots, central AC, security).
- The condition of the building (new vs. old and interior finishes).
- Comparing the rent to similar apartments in the same building or adjacent blocks in the same area (e.g., comparing an apartment in Salmiya - Block 4 to similar apartments on the same street).
Based on the expert's report, the court rules to fix the new rent retroactively from the date the lawsuit was filed or the tenant was notified. Once the judgment is issued, the door is closed again for the next 5 years.
What If the Landlord Adds Substantial Improvements?
There is a very narrow exception to the 5-year rule. The landlord may exceptionally request a one-time rent increase before the five years elapse if they have made substantial additions or major improvements to the building that increased the unit's value (e.g., installing a new central air conditioning system where none existed, or adding an elevator). The increase is estimated at a modest percentage but requires the approval and assessment of the court.
The Landager platform assists landlords and real estate companies in Kuwait by digitizing the start dates of every contract and automatically triggering "Right to Demand Rent Increase" alerts months before the 5-year cycle relates, facilitating perfect timing for tenant notifications.
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Sources & Official References
Frequently Asked Questions
▶What are the rent increase limits and caps in Kuwait?
Kuwait has specific rules governing when and how landlords can increase rent. These rules may include caps on the percentage of increase, minimum notice periods, and restrictions on frequency. Landlords must comply with all applicable regulations when raising rent on existing tenancies.
▶What are the key landlord-tenant laws in Kuwait?
Kuwait boasts a and highly regulated residential leasing sector governed primarily by Decree Law No. (35) of 1978 Regarding Leasing of Real Estate and its subsequent amendments. The law carefully balances the rights of both the landlord and the tenant, ensuring stability for families while protecting real estate investments. This guide covers the essential compliance requirements for property owners and landlords.
Read the complete guide▶What is the legal eviction process for landlords in Kuwait?
The eviction process in Kuwait requires landlords to follow formal legal procedures. Valid grounds typically include non-payment of rent, lease violations, or the landlord's personal use of the property. Landlords must provide proper written notice, allow any required cure periods, and may need to obtain a court or tribunal order. Self-help evictions are generally prohibited.
Read the complete guide▶What are the security deposit rules and return deadlines in Kuwait?
Kuwait has rules governing how much landlords can charge as a security deposit, how deposits must be held or protected, and the timeline for returning deposits after a tenancy ends. Landlords must provide itemized statements of any deductions and comply with all statutory deadlines to avoid penalties.
Read the complete guide▶What are the mandatory lease requirements in Kuwait?
Lease agreements in Kuwait must comply with applicable national and local laws. Required elements typically include the names of both parties, property description, rent amount and payment terms, deposit details, lease duration, and maintenance responsibility allocation. Written leases may be required for certain tenancy types or durations.
Read the complete guide▶What are the landlord maintenance and repair obligations in Kuwait?
Landlords in Kuwait are generally required to maintain rental properties in a habitable condition, keeping the structure, plumbing, electrical systems, and essential services in proper working order. The specific allocation of maintenance responsibilities between landlord and tenant should be clearly documented in the lease agreement.
Read the complete guide▶What are the late fee and penalty rules for rental properties in Kuwait?
Kuwait has specific rules regarding late fees and penalties for overdue rent. These may include mandatory grace periods, caps on late fee amounts, and restrictions on interest charges. Late fee provisions should be clearly stated in the lease agreement and must comply with local regulations to be enforceable.
Read the complete guide▶What property disclosures are landlords required to make in Kuwait?
Landlords in Kuwait must disclose relevant information about the property to prospective tenants before the lease is signed. Required disclosures typically include known material defects, environmental hazards, previous damage history, and any conditions that could affect the tenant's use and enjoyment of the property.
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