hundreds
month.
9.
of thousands of rental units from individual landlords for 7-20 EGP
per
The Complainant claims that with the restrictions in place, it became impossible for
landlords to increase rents or to sell the property, unless to the tenants and then for only
a fraction of the market value, especially since the government imposed an extension of
rental contracts for more than two generations (120 years). Landlords also cannot
evacuate tenants in order to renovate the property or demolish it and rebuild another
when the lifespan of the property comes to an end.
10. The Complainant submits that the regime forbade the evacuation of the units when the
life of the property came to an end, when the landlord needed the units for his personal
use, his children or relatives, or even for a pressing need.
11. The Complainant alleges that the restrictions imposed by the regime influenced the nonpayment of rents by tenants, notwithstanding the very low rents. Also, judicial
proceedings to recover rents or force the defaulting tenants to quit the property became
unduly prolonged and costly.
12. The Complainant avers that due to the very low revenue, landlords became unable to
pay for maintenance and renovation of their property. Ironically, the Complainant avers,
in case of structural damage, the landlords are obliged to pay for restoration or face
juridical
consequences
including
jail
terms,
when
on
their
part
they
cannot
even
evacuate the tenants to effect restoration. As a consequence, the Complainant states, the
majority of real estate properties are in a deteriorating state with over four hundred
buildings collapsing every year, often resulting in the death of tenants.
13. The Complainant also alleges that due to the very low rents and difficulties to evict
tenants, tenants have been able to remain in units with impunity, not paying their rents
and even extorting exorbitant amounts from landlords to end the rental and vacate the
premise.
14. The Complainant also submits that
including three million units under
moved to units that they were able
rent payment; and five million units
market because of the arbitrary laws.
more than 16 million
the Rent Control Law,
to construct themselves
left empty by landlords
units now remain vacant,
left empty by tenants who
because of the savings on
who refused to put it in the
15. The Complainant alleges that the whole regime is implicated in this corruption scheme,
including executives, legislators, senior military and police officials, judges and their
families, who
rent millions of units for less than 1USD
any changes in the law from which they are benefitting.
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per month, and would
prevent