Saad stated that the new law specifies a transitional period before the expiration of old rental contracts of seven years for residential properties and five years for non-residential properties. The law requires the tenant to vacate the unit and return it to the owner at the end of the transitional period.
He called for the formation of specialized, neutral committees in each city in each governorate to determine the rental value of each residential unit at the current time, given that each city's dynamic nature differs from another, and therefore rental values for residential units vary from one city to another.
He indicated that the estimates of these committees will be enforceable after being presented to the relevant governor. He stressed that a percentage increase will be applied to the rental value of each residential unit subject to the Old Rent Law. For example, a 300% or 500% increase may be applied to the old rent value per month.
Saad believed that working with the estimated prices of real estate tax authorities should be based on these authorities' estimates, and that these authorities should conduct estimates of the rental or purchase value of residential units in each region every five years, based on their location within the governorates. He called for the approval of this proposal, while utilizing the rental values of residential units from real estate tax estimates.
He considered this proposal to be the closest to achieving a balance between the two parties in the relationship (landlord and tenant). He said that the law will protect the infrastructure of properties subject to the old rent law, given that landlords are reluctant to maintain the infrastructure of these properties due to the low monthly rental values of residential units subject to the old rent law.
Dr. Saad predicted that the assets of the Ministry of Endowments'
agencies will reach EGP 1 trillion in the governorates, most of which are
subject to the old rent law. Therefore, after the law is issued, the Ministry
of Endowments will be the biggest winner among the 34 ministries, with rental
values not fixed.
He noted that the most of the Ministry of Endowments' properties are subject to the old rent law. There are housing units belonging to the Ministry of Endowments' agencies in the governorates from which a monthly fee of EGP 5 is collected for housing or various commercial activities. The old rent has led to the waste of public funds on state property, specifically the Ministry of Endowments, which holds the largest share of properties rented under the old rent law.
He expects that the Ministry of Endowments' revenue will increase significantly after the law is issued, given the instability of rental values. There are entire villages affiliated with the Ministry of Endowments, most of which are subject to the old rent law, and the financial proceeds from these are very small.