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Egypt Independent
03-07-2025
- Business
- Egypt Independent
10 key points of Egypt's new ‘Old Rent Law' amendments
Egypt's House of Representatives, during its general session on Wednesday chaired by Counselor Hanafi al-Gebaly, approved the government's draft law concerning certain provisions related to rental laws. This legislation aims to restructure the relationship between landlords and tenants under the 'Old Rent Law,' marking a new legislative step towards regulating the real estate market and achieving balance between parties within rental agreements. Here are the key points of the 'Old Rent Law' amendments: Categories Covered by the Law The law's provisions apply to properties leased for residential purposes, as well as those leased to natural persons for non-residential purposes. Crucially, these properties must be subject to the provisions of Laws #49 of 1977 and #136 of 1981, which have historically governed landlord-tenant relations for decades. Transition Periods Before Contract Termination The law specifies transitional periods before rental contracts are terminated. Residential leases will end seven years after the law comes into effect, while non-residential leases will terminate after five years. This is unless both parties agree to end the contract earlier, providing tenants with sufficient time to make alternative arrangements. Field Committees for Area and Unit Classification Each governorate will form special committees, by a decision from the governor, tasked with classifying areas containing units subject to the law's provisions into three categories: premium, medium, and economic. This classification will be based on a set of criteria including geographic location, building quality, service levels, and available infrastructure. These committees are mandated to complete their work within three months of the law's implementation, with the possibility of extension by a decision from the Prime Minister. Rent Increases Based on Area Classification Effective from the rent due date immediately following the law's implementation, rental values for residential units will be adjusted. In premium areas, the rent will become 20 times the current value, with a minimum of LE 1,000. For medium and economic areas, the increase will be 10 times the current value, with minimums of LE 400 and LE 250 respectively. While the classification committees complete their work, tenants will temporarily pay LE 250 per month, with any difference in value to be paid in subsequent installments once the committee results are announced. Rent Adjustment for Non-Residential Units For units leased for commercial or non-residential purposes, the rental value will be increased to five times the current price, starting from the month following the law's application. This is part of a phased plan to re-evaluate the rental market. Regular Annual Rent Increase The law stipulates an annual rent increase of 15 percent on a periodic basis for both residential and non-residential units. This ensures that market rental values are continuously and consistently updated without imposing sudden burdens on either landlords or tenants. Mandatory Eviction Cases Under New Regulations The law outlines two specific scenarios where a tenant is obligated to vacate the unit before the legal term ends: The first is if the unit is proven to have been closed for more than one year without justification. The second is if the tenant owns another usable unit for the same purpose. If a tenant refuses to vacate, the owner can petition the Provisional Affairs Judge for an eviction order. This does not, however, preclude the tenant's right to appeal through a substantive lawsuit. Tenant's Right to a State-Provided Alternative Unit The amendments to the Old Rent Law grant tenants the right to apply for an alternative unit from the state, either through rental or ownership schemes. This is contingent on applying before the specified period in Article Two expires and submitting a declaration to vacate the old unit immediately upon allocation. Priority will be given to vulnerable groups, such as the original tenant, their spouse, and parents. The state is also committed to making these units available in official announcements and will regulate selection procedures in cases of high demand, based on criteria including the nature of the area. Comprehensive Repeal of Old Rental Laws After Seven Years After seven years from the commencement of these new amendments, the old laws that governed landlord-tenant relations, including Laws #49 of 1977, #36 of 1981, and Law #6 of 1997, will be completely repealed. This marks the beginning of a new phase of legislative regulation in the rental market. Law's Effective Date After Official Publication The provisions of this law will come into effect immediately upon its publication in the Official Gazette. All its articles will then be enforced starting the day following publication, initiating a transitional phase that includes re-evaluation and the gradual implementation of the new procedures.
Egypt Independent
18-06-2025
- Business
- Egypt Independent
House of Representatives' Housing Committee approves new 'old rent' law
The House of Representatives' Housing Committee approved in principle on Tuesday the newest draft for the old rent law submitted by the government. At the beginning of the House's plenary session, House Speaker Hanafi al-Gebaly referred a draft law submitted by the government on certain provisions related to rental laws and the reorganization of the relationship between landlords and tenants. This law replaces the previous draft law submitted by the government to the House of Representatives on April 28 regarding certain provisions related to rental laws. The referral was made to a joint committee of the Housing, Public Utilities, and Construction Committee and the offices of the Local Administration and Constitutional and Legislative Affairs committees to discuss the articles of the draft law and report upon it. It relied on the latest version submitted by the government to the House of Representatives on June 16, which included the major features and new legislative proposals to regulate the relationship between landlords and tenants. New draft law The draft law stipulates an appropriate transitional period before terminating old lease contracts. This period is seven years for premises rented for residential purposes, and five years for premises rented to natural persons for non-residential purposes. Tenants are required to vacate the leased premises and return them to the landlord once the transitional period is done. The law explicitly stipulates the abolition of all old lease laws after the end of this transitional period. The law stipulates that after the end of the transitional period, old lease contracts shall be terminated and the rental relationship shall be freed up, such that all lease contracts shall become subject to the provisions of the Civil Code, subject to the mutual consent of both parties. The draft law also stipulates increasing the legal rental value of places rented for residential purposes in distinguished areas by twenty times the current legal rental value, with a minimum amount of LE 1,000, and by ten times the current rental value of units located in medium and economic areas, with a minimum amount of LE 400 in medium areas, and LE 250 for units located in economic areas. It also stipulates increasing the legal rental value of places rented to naturalized persons for purposes other than residential purposes by five times the current rental value, and increasing the rental value of places rented for residential and non-residential purposes during the transitional period periodically annually by 15 percent. According to the law, inventory committees will be formed within the scope of each governorate, specializing in dividing the areas containing premises rented for residential purposes subject to the provisions of this law into distinguished, medium, and economic areas, and determining the rental value due based on this classification, provided that these committees complete their work within three months from the date of the law's entry into force. Edited translation from Al-Masry Al-Youm
