Given the state’s concern for both landlords and tenants, it implemented new amendments to the old rental law to achieve equity for both of them. President Abdel Fattah El-Sisi issued Law No. 10 of 2022 regarding changing some procedures and dates for vacating the premises rented to juridical persons or entities such as companies, banks, and schools, for non-residential purposes. To find out the latest news about the new amendments made to the law, we interviewed Mr. Samy Amin Nashed, Legal Consultant at RE/MAX Egypt.
Mr. Nashed stated that the old rental law was amended in March 2022 under the name "Law No. 10 of 2022 with regards to the procedures and dates for evacuating the premises rented to juridical persons for non-residential purposes in light of the effects and economic repercussions of coronavirus”. It is worth noting that many landlords and tenants were waiting for this law to be issued to rebalance the relationship between landlords and tenants.
Article One: Identified who this law is being addressed to, namely juridical persons represented as companies, banks, and schools.
Article Two: Determined the period of time in which the tenant will vacate the property, which is five years from the date the law has been enforced.
Article Three: Announced an increase in the rental value that is five times the current rental value. So for instance, if the rental value was 50 LE, then it would be 250 LE. It is also worth noting that starting from March 2023, the rental value will increase annually by 15%.
Article Four: Specified the judge that one can resort to in case the tenant refuses to vacate the property after the specified period of five years. That judge would be the judge of provisional matters who can be found at the court where the property is located in. This judge will issue an order to evict the tenant from the property, and the landlord will have the right to obtain financial compensation.
Article Five: Announced the publication of this new law in the Official Journal which has been stamped with the seal of the state and implemented as one of its laws.
The new amendments made to the old rental law is helping regulate the relationship between the landlord and the tenant, and preserve each parties’ rights. It is giving landlords the right to obtain financial return that is in alignment with the overall increase in prices and current economic circumstances. It is also helping tenants reach an acceptable rental value and period that will suit their needs. If you want further legal consultation regarding these new amendments, contact RE/MAX Egypt by calling 16088 or contact us here.