The Opinion of the Chairman of the Housing Committee in the House of Representatives Regarding Renovating Old Rent Apartments After Evacuation
Does the Owner Bear the Cost of Renovating the Apartment After Evacuation?
MP Mohamed El-Fayoumy, Chairman of the Housing Committee in the House of Representatives, clarified his stance on the frequently asked question of whether a tenant has the right to claim the cost of renovations for an old rent unit after vacating it and handing it over to the landlord.
He explicitly stated that the tenant does not have the right to demand any compensation or reimbursement from the landlord for renovations or improvements made to the apartment during the rental period. He pointed out that the Civil Code stipulates that any improvements or repairs made to the rented property become the property of the landlord once the lease relationship ends, and their cost cannot be reclaimed.
El-Fayoumy further explained that the landlord-tenant relationship is governed by precise legal principles, and therefore, the landlord is not legally obligated to bear any expenses or return any amounts related to modifications or enhancements made by the tenant, as long as they were carried out during the tenant's use and benefit from the property.
Key Features of the New Old Rent Law Draft
The following is an overview of the most important articles in the draft law on old rental contracts, which aims to regulate the relationship between landlords and tenants, set a timeline for terminating old rental agreements, and strike a balance between the rights and responsibilities of both parties:
Article 1:
The provisions of this law apply to all units rented for residential or non-residential purposes that were leased to natural persons under Law No. 49 of 1977 and Law No. 136 of 1981, which regulate landlord-tenant relations.
Article 2:
Residential leases governed by this law will end seven years after it comes into effect. Non-residential leases signed with natural persons will end five years from the law's effective date, unless both parties agree to terminate earlier.
Article 3:
Special committees in each governorate will be formed to classify the rental areas into three categories: premium, middle-class, and economic zones. This classification will be based on predefined criteria, such as the geographic location, type of building, utilities, surrounding services, and the current rental value listed in property tax records. These committees must complete their work within three months, extendable once by a decision from the Prime Minister.
Article 4:
The new rental value will be set based on the type of area:
Premium areas: 20 times the current legal rent, minimum EGP 1,000/month.
Middle-class areas: 10 times the current rent, minimum EGP 400/month.
Economic areas: 10 times the current rent, minimum EGP 250/month.
A temporary monthly rent of EGP 250 is payable until the area classification is finalized, after which any rent differences will be settled in installments.
Article 5:
For non-residential units rented by natural persons, the rent will increase to five times the current legal amount starting from the law’s effective date.
Article 6:
The rent determined under this law will increase annually by 15% to gradually balance the interests of landlords and tenants.
Article 7:
Tenants are obligated to vacate the unit—whether residential or non-residential—upon the expiration of the period defined by the law, or in exceptional eviction cases, including:
Leaving the property closed for more than a year without legal justification.
Owning another suitable property for the same purpose in the same city or nearby area.
In such cases, landlords may seek eviction through the courts and may also claim compensation if damage occurred.
Article 8:
The state will provide alternative housing solutions for old rent tenants or their legal successors by giving them priority in renting or owning alternative units—on condition of officially relinquishing the old rented unit. Priority will be given to the most vulnerable, such as the original tenant, their spouse, or a parent, as part of the government’s plan to support low-income housing.
Article 9:
All previous laws governing old rent relationships will be repealed seven years after this law takes effect, along with any contradictory legal provisions.
Article 10:
This law shall take effect the day after it is published in the official gazette, and all relevant entities must implement its provisions.
