3000 EGP rent and 6 months transitional period What are residents of old properties waiting for
Old property owners have a surprise regarding
Old rent amendments during the current period, after the Supreme Constitutional Court ruled to increase the rental value.. So what are residents of old properties waiting for? Especially after the Supreme Constitutional Court ruled that the first paragraph of Articles 1 and 2 of the Old Rent Law is unconstitutional
With the exchange of market requirements between owners and tenants.
The Supreme Constitutional Court indicated that determining the rent of real estate must be based on objective controls that take into account inflation and other economic factors.
The fate of old rental contracts
Many have raised questions about the fate of old rental contracts, as the ruling will be implemented, and in the event that a new law is not issued to regulate old rents, as the competent courts will determine the rental value, which means that financial matters will return to the courts to determine the monthly rent values in line with current living conditions.
The ruling to cancel the old rents is expected to be implemented starting the day after the end of the current legislative session of the House of Representatives, which means that tenants will not be able to take any legal measures to change the terms of the lease until after the end of the session.
Old Rents Amendments
The Union Party held a seminar entitled "Challenges of the Old Rent Law between Landlords and Tenants" and this issue is not new, as its roots go back about 27 years, and it has sparked many discussions about the rights of landlords and tenants.
In this regard, Mustafa Abdel Rahman, head of the Old Property Owners Coalition, confirmed during the seminar his concern about the current situation, noting that landlords should not be considered "urgent".
He said that the wait has continued for more than 60 years without any noticeable solution, which reflects the challenges facing landlords regarding the current rent level.
Abdel Rahman added that the talk is about their rights as landlords, pointing to the large gap in wages between shops. For example, how can a shop renting 50 pounds be close to a kiosk renting for 10 thousand pounds? This gap is illogical and undermines the interests of owners.
On the other hand, the Old Property Owners Coalition rejected the idea of a new transitional period, as members believe that the current situation requires serious steps to resolve this problem.
Increasing the value of old rents
Abdel Rahman said that the longest transitional period that can be tolerated by owners does not exceed two years for residential rent and 6 months for commercial rent, with a minimum rent value of no less than EGP 2,000 for residential rent and EGP 3,000 for commercial rent.
The court considered that setting the annual rent for residential places on a fixed basis conflicts with market requirements and the mutual interests between owners and tenants.
The court indicated that setting the rent must be based on objective controls that take into account inflation and other economic factors.