Expats in Cairo, Here’s How to Avoid Being Conned by Your Landlord/Broker
It’s the time of year again when property rentals go crazy across Maadi (and other parts of Cairo) due to new foreigners coming, and existing foreigners either ending contracts or leaving Egypt. As the admin of the group Maadi Landlords – Good & Bad, I would like to give everyone some tips and ‘heads up’ to make sure you know what the norms are and, more importantly, how to avoid being scammed or conned. If you are interested in finding out more about landlord law, you might want to check out somewhere similar to https://www.american-apartment-owners-association.org/landlord-tenant-laws/florida/ to learn more.
Despite the turbulent economic situation here at present, the whole property rental prices have remained the same – some properties have even had prices lowered (due to non-movement of new tenants who stay on at their current property after negotiating with their current landlord). So the rental market has seen a slump in tenant movement leaving many vacant properties. It is crucial to be aware of this when dealing with landlords and especially brokers.
As of this month there has been a surge in rental prices in Maadi – the landlords and brokers are used to having an influx of new foreigners around this time (mainly teachers) which is the cause for this sudden increase in rental pricing. The number of new foreigners coming into Egypt in general has dropped drastically over the years, so by the end of the summer/the prime rental-sign up period, there will still be plenty of empty apartments left. Bear this in mind when landlords/brokers are trying to push you for as much as they can – do not believe “demand is so high, this is fair market value, get it now because there will be no properties left soon” etc.
Do not agree to a 10% annual increase in your rent when signing for a contract longer than 12 months. Landlords and brokers will tell you this is the law – this is a lie. The law states that a rental price cannot be increased more than 10% per calendar year – it does not mean it has to be implemented. To say it has to increase by 10% per year is a common lie, especially by brokers. If you’ve been pressured into a contract you’re not happy with and are looking for a way out of it, Iron Fist Legal assistance may be something worth investigating if you’re in this situation.
The law actually states that there should be no rent increase in the first two years if you sign a contract for 24 months. The price you agree when negotiating should reflect a set price for the whole contract period. The law is only circumvented if you the tenant agree to something different (waiving away this protection law).
When dealing with brokers, always check first who is paying their fee – it should either be the landlord (if they have been instructed by a landlord) or by you, if you have asked the broker to find you a certain property that they do not already have on their books. It is not the law for both the tenant and the landlord to both pay fees to the broker – this is a scam by brokers to get double fee, which in this case works out as them receiving the equivalent of two month’s rent value; one month from you and one month from the landlord. In most cases, the landlord is the one who pays the fee – definitely not both tenant and landlord. Do not believe brokers who tell you otherwise or that it is the law, because it is the opposite of the law. Again, the law is only circumvented and therefore your legal protections voided, if you agree to something else.
A fully-furnished rental contract means that everything should be there in the property – from furniture, light fittings to beds and kitchen cupboards. All normal wear-and-tear maintenance and building repairs are the responsibility of the landlord, not you the tenant.
Unfurnished rental contracts are a big dupe here in Egypt; unfurnished means no furniture. Fixtures and fittings, such as kitchen cupboards, ACs, sinks, etc are not furnishings and are supposed to be provided. Sadly, Egyptians seem to have a different interpretation of the rental contract laws here in Egypt as well as the definitions of specific words, like ‘furnishings’. Unfortunately, you will just have to negotiate a rental price that reflects that you are actually, in essence, agreeing to a lease – not an unfurnished tenancy agreement. The difference? A lease means you are renting the property with nothing – not even a light bulb – being supplied and you will be expected to repair even structural issues (crumbling walls, flaking ceilings) yourself. It clearly states the opposite in the standard unfurnished rental contract, but you will never get a landlord to follow this. So, be prepared and bear this in mind when negotiating.
It is also worth pointing out that foreigners will be charged a lot more than Egyptians, so do your homework and hunt around on Facebook rental property pages and the olx.com website – you shouldn’t be surprised to see the property you are currently negotiating is being advertised for a much lower price (brokers and landlords don’t expect many foreigners to check the olx.com website as it is mainly in Arabic, but prices are listed in English; – do your homework to ensure you are not being conned!).
These are the main points to be aware of when searching for properties and dealing with landlords and brokers. It is also worth noting that, where possible, always try and deal with landlords directly and avoid brokers if you can. Yes – there are some good brokers in Maadi, but they are very few and far between. The same with landlords, but you can usually have a fairer negotiation with a landlord without a broker trying to inflate everything (to increase their fee) and possibly deter you from your ideal property with a potentially very good and fair landlord. If you do need to utilize a broker’s service, check everything before engaging their services and make sure you fully understand who they expect to pay their fee.
