Addis Ababa Caps Annual Rent Increase at 11.5% for 2 Years
Addis Ababa government has limited annual rent increase to 11.5%. The new instructions will remain in force for 2 years.
According to Mrs. Kidist Wolde Giorgis, head of the Addis Ababa City Administration Housing Development Bureau, landlords who violate this law will face significant financial penalties. The head of the bureau explained that this maximum increase was determined after a thorough scientific study that took into account the city’s current situation, the affordability of tenants, the cost of living, and inflation. Landlords who demand rent increases exceeding 11.5% will be fined up to three months’ rent , warned Addis Ababa City Housing Development Bureau.
Landlords and Tenants have been urged to register Rent Agreements. Failure to comply with it will result in imposition of penalties. Informal, non registered, “neighborhood agreements” between landlords and tenants will be punished.
If both the landlord and the tenant live together and fail to renew the contract for up to 2 months after the renewal period expires, they will be fined one month’s rent. If they have not renewed the contract for 3 months or more, they will be fined two months’ rent. Landlords who introduce new tenants without renewing or registering the contract will be fined one month’s rent.
