Egypt Daily News – On Wednesday, the House of Representatives approved the final amendments to the “Old Rent Law” during its general session. This law has been a source of controversy for decades between property owners and tenants. The decision opens the door to a new phase in rental relations and raises urgent questions about the fate of millions of properties and affected citizens.
So what happens after the amendments are passed? And what should both tenants and landlords expect?
Key points in the amendments:
- The rental relationship will be liberalized after a transitional period set at five years from the date of implementation for non-residential units, and seven years for residential units.
- The amendments currently apply only to units rented for non-residential purposes (such as shops and administrative or commercial offices), with amendments for personal housing to be proposed later.
- A gradual increase in rental value will be imposed annually at a specified rate, five times the current legal rent.
Landlords: An end to historical injustice
Several landlords welcomed the law, considering it a long-awaited step. They argued that the old rent law was unfair to them for many years, as rents were paid at nominal amounts that did not reflect current market value.
Engineer Amin Fahim, a property owner in Heliopolis, said: “I’m receiving 20 pounds in rent for a shop on a main street in Heliopolis, and the shop earns thousands daily. Is that fair? The new law has finally done us justice after years of suffering.”
Tenants: Fear and anxiety about eviction
On the other hand, many tenants expressed fears of displacement or losing their source of income, especially small shop or workshop owners who feel they have no immediate alternatives.
Mrs. Om Karim, who has been renting a tailoring workshop since 1980, said: “I support my family with this workshop. If the rent increases the way they’re saying, or if we’re forced to leave, where will we go?”
Experts: A necessary step, but with caution
Legal and economic experts view the amendments as a relatively balanced approach to protecting the rights of both parties. However, they caution against potential social and economic impacts if suitable alternatives are not provided for affected tenants.
Economists emphasize that reform is necessary, but it must be accompanied by social protection mechanisms, such as support funds or relocation financing, to ease the burden on small-scale tenants.
What’s next?
Following the law’s passage, the government and executive authorities must now issue the law’s executive regulations within a specified timeframe. They must also determine the actual increase rates based on regions and activities, set up clear mechanisms to resolve potential disputes, and launch awareness campaigns to explain the rights and responsibilities of each party.
A long-overdue reform—but social justice must be ensured
As the old rent law reaches its final stage, it’s clear that reform was long overdue. But the true success of this reform won’t be measured by pleasing one side over the other, it will be in achieving a balance between the right to property and the right to housing and work, while creating a fair and stable legal and economic environment.
