Welcome to Ethiostar Translation and Localization PLC! As experts in the translation and localization industry, we understand the complexities that come with living and working in a foreign country. Today, we’re here to provide you with a comprehensive guide to the new Housing Rent Control and Management Proclamation No. 1320/2024, which will affect how you rent property in Ethiopia. This blog is crafted to help expatriates like you navigate the new regulations and ensure a smooth rental experience.

Scope of the Proclamation

The Housing Rent Control and Management Proclamation No. 1320/2024 is applicable to any house rented for residential use, starting from a single room. However, it does not apply to hotels, resorts, guesthouses, or other premises rented under a commercial license. This means that if you’re renting a house or an apartment for living purposes, these regulations are relevant to you.

Housing Lease Contract

1. Written Contracts: All housing contracts must be in writing. Verbal agreements are no longer sufficient.
2. Verification and Registration: Contracts must be verified and recorded by the district housing administration office. This step is crucial as unregistered tenancies are deemed invalid.
3. Payment Methods: Rent payments must be made via bank or other legal electronic methods.
4. Mandatory Registration: Since June 8, 2024, lease agreements must be verified and registered. This requirement extends to all districts.
5. Time Frame for Registration: Landlords and tenants must verify and register the lease within 30 days of signing.
6. Penalties: Failure to register will result in a fine of up to three months’ rent for the landlord or tenant.
7. Lease Term: The term of a residential lease must be at least two years unless a written lease existed before this Proclamation.
8. Advance Payment: Landlords may request an advance payment of up to two months’ rent.
9. Tenant Protection: During the contract period, tenants cannot be evicted, nor can the rent be increased without permission from the Proclamation.

Residential Rental Price

1. Rental Value: The rent on the lease is considered the rental value of the house.
2. Rent Increases: Rent increases for existing or new tenants are determined annually by the Addis Ababa Housing Management Office, considering the current economic situation.
3. New Rentals: For newly built or first-time rentals, the rent is agreed upon by the landlord and tenant.
4. Unoccupied Houses: If a previously rented or newly constructed house remains unoccupied for more than six months, the potential rental income tax must be calculated and paid.

Termination of Residential Lease

A residential lease can be terminated under the following conditions:

1. Mutual Agreement: Before the end of the rental period, by mutual agreement of the landlord and tenant.
2. Tenant Notice: By the tenant, with two months’ notice.
3. Ownership Transfer: By giving the tenant six months’ notice if the house ownership is transferred due to inheritance, sale, debt, or any other legal reason.

Circumstances for Termination Without Notice

1. Overdue Rent: The first rent payment is overdue by 15 days, or the second rent payment is overdue by 7 days.
2. Misuse of Property: The house is used for non-residential or business purposes without the landlord’s permission.
3. Disturbance: The tenant repeatedly disturbs the peace and tranquility of the area.
4. Criminal Activity: The tenant commits a crime in the house or uses the house for criminal activities.
5. Damage to Property: The tenant causes significant damage to the house intentionally or negligently.

Documents for Contract Registration

When applying for registration, the following documents are required:

1. Residential Lease Contract: A legally prepared residential lease contract document.
2. Identification: Original and copy of identity documents or equivalent documents of the landlord and tenant. If an agent registers the lease, legal representation by two witnesses and their updated ID copies are required.
3. Proof of Ownership: The landlord must submit an original and copy of a legal document proving their right to rent the house.

Prohibited Activities and Reportable Cases

• Renting a residential property without a registered contract.
• Renting without registering a lease agreement or registering after the deadline set by the Proclamation.
• Charging more than the rent specified in the registered contract.
• Increasing rent or demanding advance payments beyond what the Proclamation allows.
• Terminating the lease period contrary to the Proclamation’s provisions.
• Providing false information to misuse incentives given to landlords by the Proclamation.
• Using the residence for non-residential purposes or criminal activities.
• Evicting tenants before the contract period ends, except as allowed by the Proclamation.
• Terminating the contract without giving the required notice or warning period.
• Not paying rent through bank or other legal electronic means.
• Leaving a rented or newly built house unoccupied.

Supervision

• The housing office will be supervised by appointed experts.
• Inspectors perform their duties during government working hours and must carry an ID indicating their role.
• Inspections are carried out by a team of supervisors, not by a single professional.

Conclusion

The Housing Rent Control and Management Proclamation No. 1320/2024 is designed to create a fair and transparent rental market in Ethiopia. As an expat, it’s important to familiarize yourself with these regulations to ensure a smooth and lawful rental experience. By understanding your rights and responsibilities, you can navigate the rental process with confidence and avoid potential pitfalls.

If you need any assistance with translation or localization services, Ethiostar Translation and Localization PLC is here to help. Our team of experts is dedicated to providing you with the best services to make your stay in Ethiopia as comfortable as possible.

Feel free to reach out to us for any translation needs or further clarification on the new housing regulations. Welcome to Ethiopia, and happy renting! #EthiostarTranslations #ExpatLifeEthiopia #HousingProclamation2024 #EthiopianHousingLaws #ExpatGuideEthiopia #RentingInEthiopia #EthiopianLegalUpdates #EthiopianRentControl #EthiopianHousingMarket #ExpatsInAddisAbaba #EthiopianRegulations #EthiopiaExpatLiving #AddisAbabaRentals #EthiopianTenancyLaws #EthiopianRentalMarket #EthiopiaLegalGuide #TranslationServicesEthiopia #LocalizationEthiopia #EthiopianExpats