Rent Law Advantages And Disadvantages

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A- Introduction The old rent law in Lebanon was enacted after the end of the World War II, in order to protect the rights of tenants from greedy landowners. The law was based on freezing all rental agreements made before this date. This law did not take into consideration inflation, the eventual rise in wages, and the increase in the rental housing market. After the Civil War in 1992, the rent market was liberated, and new contracts were allowed. Landlords were able to raise rent after three years. But the issue of landlords with tenants paying old rents remained. After the collapse of the building in Fassouh Neighborhood in Ashrafieh in 2012, because of the lack of maintenance, the debate about the consequences of the Old Rent law in Beirut, and the way it should be transformed increased. Beyond the issue going on between the owners and the tenants, rent control causes an issue on the urban renewal process level and the…show more content…
This old rent law in Beirut, despite its flaws, is suppressing gentrification by keeping the middle class in affordable housing units in the center of the city. B- Disadvantages of the Old Rent Law in Lebanon The Old rent law in Beirut has a lot of disadvantages. This fixed law shifted the responsibly of the state to provide affordable housing to individual landlords. Instead they obliged the landlords to solve issues beyond their ability. In addition to that, landowners had to take the full financial risk caused by this policy. This law also created a Rent Gap, caused by the low returns for the owners which do not exceed few hundreds of dollars per year. This rent gap has two consequences: the low revenues from the rents, prevent the owners from paying for maintenance, which results in a poor living conditions and sometimes could lead
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