The New Rent Law in Egypt

The New Rent Law in Egypt is considered one of the important laws that aim to regulate the relationship between the landlord and the tenant after years of applying the old rent system. The law seeks to achieve a balance between both parties by determining a fair rental value and setting time controls for contracts, in a manner consistent with economic changes and contributing to reducing disputes.

Why must every property owner understand the New Rent Law?

Understanding the New Rent Law is necessary for every property owner because it clearly defines his rights and obligations, especially with regard to the rental value, the duration of the contract, and cases of eviction. It also helps him avoid falling into legal errors that may lead to disputes or financial losses. In addition, it enables the landlord to manage his properties better and make correct decisions that achieve a fair return and preserve his rights.

What are the latest amendments that concern the property owner?

The most important amendments in the New Rent Law (Law No. 164 of 2025) that directly concern the property owner are as follows:

1- A significant increase in the rental value

The law has raised the rent by a large percentage compared to the previous value:

• In some areas, it reaches 10 or 20 times the previous value
• With a minimum rent depending on the area

2- A fixed annual increase

A periodic annual increase of 15% on the new value has been approved, which guarantees the landlord an increasing income over time.

3- Termination of old rent contracts

• Residential units: terminate after years
• Non-residential: after 5 years

After that, the landlord has the right to recover the unit

4- Full liberalization of the lease relationship

After the end of the transitional period, any new contract will be subject to the Civil Code (meaning full freedom in determining the rent and conditions)

5- Classification of areas to determine the value

The law has divided areas into (distinguished – middle – economic), and each category has a minimum and a different value, which directly affects the landlord’s income.

What are the laws governing lease contracts currently?

According to Article (9) Laws Nos. 49 of 1977, 136 of 1981, and 6 of 1997 shall be repealed as of 5 August 2032, i.e., after 7 years from the entry into force of the new law.

• The Egyptian Civil Code No. 131 of 1948: the general rules of lease and is considered the general reference for everything related to rights and obligations between individuals, including lease contracts, and the Civil Code regulates the relationship between the landlord and the tenant in terms of: (determining the duration of the lease – rental value – obligations of both parties – cases of termination or expiry of the contract).
• Law No. 49 of 1977: regulating the lease of non-residential premises (such as shops and offices): non-residential premises were subject to laws such as Law No. 49 of 1977 and Law No. 136 of 1981, and the most important features were.

1. Stability of the rental value
2. Extension of the contract by force of law
3. Difficulty of eviction

Law No. 4 of 1996: regulating the relationship between the landlord and the tenant for premises subject to special laws.

It is considered a fundamental turning point in the rent system in Egypt, as it ended the application of the old rent system to new contracts.

The most important provisions of the law:

1. Liberalization of the lease relationship: any lease contract concluded after the issuance of this law is subject to the Civil Code
2. Freedom to determine the rent: the landlord and tenant have the right to agree on the rental value without restrictions
3. Determination of the contract duration: it is agreed upon freely between the parties
4. No legal extension: the contract ends upon the expiry of its term and is not automatically extended
5. Scope of application: it applies to all premises (residential and non-residential) that were leased after 1996, and does not apply to old contracts prior to it.

Law No. 10 of 2022: the latest amendments to the rent law

The most important provisions of the law:

1. Termination of old rent contracts: contracts relating to non-residential premises leased to a legal person terminate after a period of 5 years from the date of enforcement of the law.
2. Gradual increase in the rental value during a period of 5 years (an immediate increase upon the start of application – an annual increase of 15%)
3. No legal extension after the end of the period: after the end of the five years, the contract is not extended and the landlord has the right to recover the premises.

Scope of application: it applies only to non-residential premises and concerns legal persons only.

What is the fate of the old laws regulating the lease relationship?

Laws Nos. 49 of 1977, 136 of 1981, and 6 of 1997 shall be repealed as of 5 August 2032, i.e., after 7 years from the entry into force of the new law

What are the types of lease contracts from a legal perspective?

1. Lease of residential premises: for living and residence only
2. Lease of non-residential premises: for commercial shops, workshops, offices, and factories.
3. Furnished premises: lease of furniture and electrical appliances.

It is subject to the Civil Code or special laws, and includes shops, offices, and factories. Some of it has been subject to amendments such as Law No. 10 of 2022.

Why must a lease agreement be documented in writing?

• A written contract is the primary evidence in any legal dispute.
• An oral contract is difficult to prove and you may lose your rights entirely.
• A documented contract protects both parties and defines obligations precisely. Although some contracts may be oral, a written contract is the real guarantee of the rights of both parties and is the foundation in any legal dispute.

The fundamental rights of the property owner

1. The right to receive the rental value on time: he has the right to receive the agreed rent on its due date, and to request termination of the contract or eviction in case of non-payment.
2. The right to increase the rental value: the landlord has the right to agree with the tenant on increasing the rent freely from the beginning of the contract, and it may include a periodic annual increase or every few years as agreed.
3. The right to evict the leased premises: the landlord has the right to request eviction in cases such as: (expiry of the agreed contract term – failure to pay rent on time – closure of the premises where the tenant or the person to whom the contract has extended leaves the leased premises closed for more than one year without justification – ownership of an alternative unit: where it is established that the tenant or the person to whom the contract has extended owns a residential or non-residential unit (as the case may be) suitable for use for the same purpose for which the leased premises were prepared).
4. The right to retain the leased premises: it is the landlord’s right to refrain from enabling the tenant to benefit from the property or to recover it if the tenant has not fulfilled his obligations, particularly the payment of rent or breach of the contract.

The basic obligations of the property owner:

1. The landlord is prohibited from concluding more than one lease contract for the building or the same unit; in case of violation, the contract shall be void in accordance with Article 24 of the New Rent Law No. 164 of 2025. Article 24 As of the date of entry into force of this law, lease contracts shall be concluded in writing and their date must be established at the competent Real Estate Registration Office within whose jurisdiction the leased premises are located. The landlord is obligated, when leasing any building or unit thereof, to state in the lease contract the date, number, and issuing authority of the building license, as well as the amount of the estimated rent for the leased unit in accordance with Article 11 of this law, with respect to buildings subject to the initial rent system. The tenant may prove the leasing and all contractual conditions by all methods of proof. The landlord is prohibited from concluding more than one lease contract for the same building or unit, and in case of violation, the subsequent contract(s) following the first contract shall be deemed void.
2. Delivering the leased premises and preparing it, and committing to deliver the apartment or property to the tenant in the agreed condition, at the time of signing or on the specified date.
3. The premises must be fit for the intended use (residential, commercial, administrative) and free from defects that hinder its use.
4. It is preferable to attach to the contract a report or descriptive statement indicating the condition of the premises and utilities at the time of delivery to ensure rights upon eviction.
5. The landlord bears the costs of necessary and essential repairs required to keep the premises fit for use, such as structural cracks, major water leaks, main sewage maintenance, and internal electrical wiring.
6. Damages resulting from normal use: maintenance of basic utilities that deteriorate due to the passage of time or ordinary use (which does not constitute misuse by the tenant).
7. Guarantee of non-disturbance to the tenant (quiet enjoyment and privacy): The landlord has no right to enter the leased premises without the tenant’s permission or knowledge, except in cases of extreme emergency or to carry out agreed necessary repairs.
8. The landlord bears the real estate tax, unless otherwise agreed in the contract.
9. Refund of the security deposit: the obligation to return the deposit amount to the tenant upon termination of the contract, after deducting any unpaid dues (electricity, water, rent) or repair costs resulting from the tenant’s misuse.
10. Delivering the leased premises and preparing it, and committing to deliver the apartment or property to the tenant in the agreed condition, at the time of signing or on the specified date.

Common mistakes made by landlords that cost them their rights:

1. Relying solely on signing the contract privately without notarizing it at the Real Estate Registry. This makes it difficult to prove rights in case of dispute and prevents the use of the “direct enforcement formula” that enables the landlord to evict the tenant immediately upon expiry of the term without lengthy court proceedings.
2. Drafting renewal clauses in a vague manner: using phrases such as “the contract is automatically renewed” or “renewable for further periods” without specifying a time limit or clear conditions may result in the contract becoming of indefinite duration, making it difficult for the landlord to recover the property.
3. Failure to precisely define the contract duration: leaving the term open or stating “monthly” or “terminates upon the death of the tenant.” Under the new law, “monthly” means the contract is automatically renewed unless notice is given to the other party, and vague durations grant the tenant the right to remain for extended periods.

The fundamental rights of the tenant

1. Payment of rent: paying the rent on the agreed dates as per the contract.
2. Proper use of the premises: using the property for the purpose for which it was leased (residential, commercial) without causing damage or making substantial alterations without the written consent of the landlord.
3. Maintenance of the property: carrying out ordinary maintenance (such as electrical and plumbing repairs resulting from daily use) and preserving the premises.
4. Returning the premises upon expiry of the contract: vacating and delivering the property in the same condition as it was upon receipt, in accordance with what was stated in a Facebook post regarding the landlord’s rights.
5. Bearing consumption costs: paying electricity, water, gas bills, and any service charges related to the premises.
6. No disturbance: not disturbing neighbors or carrying out illegal activities within the property.
7. Commitment to the contract duration: the tenant is not entitled to terminate the contract before the specified term without bearing the financial consequences stipulated in the contract.

Common mistakes made by tenants that cost them their rights:

1. Signing an indefinite term contract or a “monthly” contract: under the new law, “monthly” means the contract is automatically renewed monthly, and the landlord has the right to evict the tenant after one month.
2. Failure to specify a clear expiry date: the start date and end date must be explicitly stated, as the absence of this may render the contract void or allow the landlord to terminate it at any time.
3. Ignoring registration of the contract at the Real Estate Registry: failure to notarize the contract weakens the tenant’s position, especially if the landlord intends to sell the property, as the contract is not enforceable against the new purchaser unless it has a fixed date prior to the sale.
4. Failure to properly inspect the property: neglecting to check plumbing, electricity, and paint before signing, which may result in the tenant bearing the cost of repairing pre-existing defects.
5. Failure to document the condition of the property: not photographing and documenting the condition of the property before moving furniture, which leads to disputes when recovering the security deposit.
6. Failure to obtain documented receipts: paying rent or deposit in cash without obtaining a signed receipt from the landlord, which opens the door to repeated financial claims.
7. Using the property for a purpose other than the designated use: using a residential unit for commercial or administrative purposes, which gives the landlord the right to terminate the contract.
8. The tenant ignores the landlord’s official notices for eviction of the property.

The landlord has the right to file an eviction claim based on the following reasons: in accordance with Article 7 of the New Rent Law

• Closure of the premises: if the tenant or the person to whom the contract has extended leaves the leased premises closed for more than one year without justification.
• Ownership of an alternative unit: if it is established that the tenant or the person to whom the contract has extended owns a residential or non-residential unit (as the case may be) suitable for use for the same purpose for which the leased premises were prepared.
• Failure to pay rent on the agreed dates in accordance with the concluded contract.

Procedures for filing an eviction claim: from Articles (1 to 9)

Article (1)

The provisions of this law shall apply to premises leased for residential purposes and premises leased to natural persons for non-residential purposes in accordance with the provisions of Laws Nos. 49 of 1977 concerning the leasing and sale of premises and regulating the relationship between the landlord and tenant, and 136 of 1981 concerning certain provisions related to the leasing and sale of premises and regulating the relationship between the landlord and tenant.

Article (2)

Lease contracts for premises subject to the provisions of this law for residential purposes shall terminate after 7 years from the date of its entry into force, and lease contracts for premises leased to natural persons for non-residential purposes shall terminate after a period of five years from the date of its entry into force, unless otherwise agreed to terminate earlier.

Article (3)

By a decision of the competent governor, committees shall be formed within each governorate to classify areas in which premises subject to this law are leased for residential purposes into distinguished, medium, and economic areas, taking into account the following criteria:

• The geographical location, including the nature of the area and the street in which the property is located.
• The level of construction and the type of building materials used, and the average unit sizes in the area.
• Utilities connected to the properties in each area, including water, electricity, gas, telephones, and other services.
• Road networks, means of transportation, and available health, social, and educational services.
• The annual rental value of buildings subject to the real estate tax law issued by Law No. 196 of 2008 located in the same area.

A decision shall be issued by the Prime Minister regarding the rules and procedures governing the work of these committees, which shall complete their work within three months from the date of entry into force of this law, and this period may be extended once by a decision of the Prime Minister. A decision by the competent governor regarding the outcome of the committees shall be published in the Egyptian Gazette and announced in local administrative units within each governorate.

Article (4)

As of the due date of the monthly rent following the date of entry into force of this law, the legal rental value for residential premises subject to this law located in distinguished areas shall be twenty times the current legal rental value, with a minimum of one thousand Egyptian pounds. For premises located in medium and economic areas, the rent shall be ten times the current legal rental value, with a minimum of four hundred Egyptian pounds for medium areas and two hundred and fifty Egyptian pounds for economic areas. The tenant or the person to whom the contract has extended shall, until the committees referred to in Article (3) complete their work, pay a monthly rent of two hundred and fifty Egyptian pounds, and shall thereafter pay any due differences in installments over a period equal to the period for which they accrued.

Article (5)

As of the due date of the monthly rent following the date of entry into force of this law, the legal rental value for premises leased to natural persons for non-residential purposes shall be five times the current legal rental value.

Article (6)

The rental value determined in accordance with Articles (4) and (5) of this law shall be increased annually on a periodic basis by 15%.

Article (7)

Without prejudice to the eviction grounds set out in Article (18) of Law No. 136 of 1981, the tenant or the person to whom the contract has extended shall vacate and return the leased premises to the landlord at the end of the period specified in Article (2) of this law, or upon the occurrence of either of the following cases:

• If it is established that the tenant or the person to whom the contract has extended has left the premises closed for more than one year without justification.
• If it is established that the tenant or the person to whom the contract has extended owns a residential or non-residential unit suitable for use for the same purpose.

In case of refusal to vacate, the landlord may request from the summary judge of the competent court an order for eviction without prejudice to the right to compensation.

The tenant may file a substantive lawsuit before the competent court, and such filing shall not suspend the eviction order.

Article (8)

Without prejudice to Articles (2) and (7), any tenant or the person to whom the contract has extended under Laws Nos. 49 of 1977 and 136 of 1981 shall have the right, before the expiry of the period specified in Article (2), to apply for allocation of a residential or non-residential unit, whether by lease or ownership, from available state units, upon submitting a request accompanied by an undertaking to vacate the leased premises upon allocation. The Prime Minister shall issue a decision within one month setting the rules, procedures, and priorities for allocation.

Article (9)

Without prejudice to Article (2), Laws Nos. 49 of 1977, 136 of 1981, and 6 of 1997 shall be repealed as of the day following the lapse of seven years from the date of entry into force of this law, and any provision contrary to this law shall be repealed.

Documents required to file an eviction claim

Submitting a request to the summary judge: the landlord submits a petition (ex parte application) to the summary judge of the court having jurisdiction over the property, requesting the eviction of the tenant or the person to whom the contract has extended.

Legal services provided by the law firm

1. Providing legal consultations that assist the landlord or the tenant.
2. Drafting lease agreements accurately and securely for both the tenant and the landlord in accordance with the new law to ensure their protection.
3. Recovery of overdue rent through issuing formal notices warning the tenant of the necessity to pay the outstanding rent.
4. Filing eviction claims against the tenant, whether for non-payment of rent or for the aforementioned reasons.

The landlord may take action against a tenant who does not pay the rent by issuing formal notices requiring payment of the rent and then filing eviction claims against him.

The landlord may increase the rent provided that such increase has been agreed upon between him and the tenant.

Documents required to file an eviction claim: (payment notices preceding the filing of the claim – a statement of claim explaining the subject of eviction and its reasons – the lease agreement).

An oral lease contract is not legally binding, as such a contract is difficult to prove and you may lose your rights entirely. A documented contract protects both parties and defines obligations precisely. Although some contracts may be oral, a written contract is the real guarantee of the rights of both parties and is the basis of any legal dispute.

The landlord has the right to retain the leased premises: it is the landlord’s right to refrain from enabling the tenant to benefit from the property or to recover it if the tenant has not fulfilled his obligations, particularly the payment of rent or breach of the contract.