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Higher rent versus old law
Published in The Egyptian Gazette on 29 - 04 - 2012

Cairo - For many years the law governing the tenant-landlord relationship has been a sensitive issue; its amendment was avoided due to likely controversies, particularly among the beneficiaries.
The Housing Committee of the post-revolution Parliament is discussing a suggestion today in view of modifying the law. Rents would be raised in a way that would put the record straight, if handled well.
The present law puts landlords at a great disadvantage. If the rent is protected by the old law, it is so minute that it does not cover the present price of many services. If all flats in an apartment block are under the old law, their combined rent brings in less than that of one flat under the new rental bill.
The problem with the Old Law is that property values are in jeopardy due to lack of maintenance. Landlords are not prepared to pay for repairs when they only collect pathetic amounts of money, although the tenants insist that the landlord is responsible for maintenance and repairs.
Some landlords go as far as hoping their building would collapse; they could make a fortune by selling the plot.
The result of this diabolical deadlock is a huge number of dilapidated buildings.
So – the Parliament is heeding the calls for social justice in line with the basic demands of the January 25 revolution.
The parliament majority, which has recently been criticised for its handling of the Constituent Assembly, seems keen to demonstrate that it touches upon issues of public concern.
Yet the Parliament's task is not as easy as it sounds, because the law in question has to strike a balance between the interests of both sides and take into consideration that many tenants, who rent their flats under the old law, could not afford a substantial increase.


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