The Ethiopian Parliament has passed a new law aimed at regulating rental housing, known as the Rent Control and Administration Proclamation. This legislation introduces several key measures to protect tenants and ensure fair practices in the rental market.
One significant change is the prohibition of landlords from increasing rent more than once a year. Additionally, the law establishes minimum lease periods, with property owners now required to offer contracts lasting at least two years. These measures are designed to provide tenants with greater stability and predictability in their housing arrangements.
To further safeguard tenants, the law imposes caps on rent increases, preventing landlords from raising rents arbitrarily in response to market fluctuations. Landlords are also required to notify both regulatory authorities and tenants in writing before implementing any rent increases, which must be based on annual adjustments determined by the regulatory body.
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One notable provision of the legislation is the imposition of taxes on vacant properties. City administrations and regional states have the authority to levy annual property taxes of up to 25% on homes that have remained unoccupied or not rented out for more than a year. This measure aims to discourage property vacancies and encourage landlords to make their properties available for rent.
The regulatory body established by the law will oversee the rental process and develop guidelines for permissible rent increases. By July 7th, standardized guidelines will be introduced that both landlords and tenants must adhere to when negotiating changes to rent amounts.
Furthermore, the law limits advance rent payments to a maximum of two months and exempts newly-built housing from rent increase caps for up to four years. This exemption aims to incentivize the construction of new housing and address housing shortages in major cities.
