Raise the rent 5 times for legal persons and increase by 15% annually

Counselor Nader Saad, a spokesman for the Council of Ministers, said that the Council of Ministers approved a draft law on evacuating rented places for non-residential purposes, such as shops or companies.

 He added, during a telephone interview on the “On My Responsibility” program, presented by the journalist Ahmed Moussa on “Sada Al-Balad” channel: “The draft law on evacuating rented places for non-residential purposes is related to legal persons such as parties, government departments, NGOs, companies and bodies.”

 Supreme Constitutional rule

 He pointed out: A ruling was issued by the Supreme Constitutional Court in 2018, giving the owner of the housing unit the right to end the relationship with legal persons in the event that his unit is rented for purposes other than housing, so in respect of the court’s rulings, the government, on its part, gave a transitional period to regulate the situation and made a legislative amendment that stipulates a period of 5 years starting As of the date of approving the amendment that was approved today and awaiting the House of Representatives, and at the end of the five years, legal persons are obligated to vacate the places they have rented unless otherwise agreed upon.

 Raising the rent of legal persons

 He explained: “In order to preserve the right of the owner during the five years, the legislative amendment stipulated that from the first day of implementing the new amendment, the rent value will be increased by 5 times, meaning that if the rent is 100 pounds per month, the value will become 500 pounds in the first year. For the last 4 years, the rent will be increased by 15% every year until the end of the specified period.

 He explained: that the legislative amendment applies to legal persons and not natural persons, pointing out that in the event of refusal to evacuate the housing unit at the end of the prescribed period of 5 years, the owner has the right to resort to the court and it will issue an urgent eviction ruling to be implemented by force of law, and in the event of failure to evacuate resulting from a loss The owner can apply to the court for appropriate compensation.

 Cabinet decision

 The Council of Ministers approved a draft law on some provisions of vacating premises rented to legal persons for purposes other than housing.

 The first article specified the scope of the draft law, and it was limited to places leased to legal persons other than for a residential purpose, in accordance with the provisions of Laws No. 49 of 1977 in the matter of renting and selling premises, regulating the relationship between the lessor and the lessee, and 136 of 1981 in the matter of some provisions relating to the lease and sale of premises Regulating the relationship between the lessor and the lessee, unless the two parties agree otherwise.

 The second article indicated the delay of vacating the premises rented to legal persons within a period not exceeding five years from the date of the law’s enforcement. Article 3 came to achieve a balance between the two parties to the rental relationship, by specifying the rental value five times the legal value in force, and it is increased annually and periodically, by 15%.

 Article 4 obligates the tenant to vacate the leased premises and return it to the owner or lessor, as the case may be, on the day following the expiry of the period indicated in Article 2 of this law. Refraining from eviction, without prejudice to the right to compensation if necessary.