How to Rent a Property in Egypt as a Foreigner – A Practical Guide

In the year of 2021, there has been a rapid change within the prices of the rental properties in Egypt. You will find that many landlords that were renting their properties with such higher prices in the past years have realized that the prices have declined and they are not receiving the same payments from their tenants as before.

You will also realize that the real estate market has increased with the number of agents/brokers working the field but in this sudden change since the pandemic, you will find that there are less professional real estate agencies in Egypt to deal with and more agents working in the streets trying to finish any deal and never having to deal with the owner/tenant again.

With the COVID-19 pandemic that has occurred in the early months of 2020, you will find that there are less people travelling due to health, travel and new procedures and protocols that needs to be followed. You will realize that the number of expats arriving to Egypt has drastically changed over the years while there are many luxurious properties that stay in the real estate market because the budget isn’t found.

The common phrase told by many landlords/brokers that can be suggested and sometimes implied by force to many clients would be, “This is the best property for you, you should make a decision before the property is taken by another client”.

3 Considerations When Renting in Egypt

This phrase can be truthful but not at all times. You should realize that the best property for yourself and family to rent should go under 3 considerations that you should always be in the back of your mind when you are looking to rent a new property within the beautiful country of Egypt which are:

• Property
• Price
• Location

Once you believe you have found the right place for yourself, you should always consider these three aspects. If you believe that all three aspects are positive then you should proceed further and finalize within that property.

If you believe that it is best 2 out of 3 is in your favor, then you are on the right track and should consider a few other options before you take the final decision. If only 1 out of 3 is positive, then you should obviously look for more options that can be suitable upon your request.

1. Location

Whether you are a resident of Egypt or an expat coming from abroad, Location is one of the top aspects to consider when you choose to rent in Egypt. You should consider the location of your office or workplace and how far it would take you to get to that destination.

You should also consider the factor of schools/universities in case that you have children to enroll in these schools and the location of these places in case you would like to drive them there as well. Another consideration is the factor of the facilities among the property and whether there are enough recreational activities that you can attend or supermarkets and retail/shops and stores in case you would like to pick up groceries or go shopping during your free time.

When it comes to most foreigners and expats that are arriving in Cairo, they would choose Maadi and New Cairo as their top options due to the workplaces and schools that are provided in these areas.

All About Maadi

There are five different areas within the beautiful district of Maadi that many people would choose to reside within this area such as:

• Sarayat El Maadi
• Degla El Maadi
• Zahraa El Maadi
• New Maadi
• Corniche El Maadi

Many foreigners would consider Maadi as their top option in the case that they are respectful representatives of their countries to serve their honored embassies or if they are international teachers serving a few years within the many international schools provided in Maadi. You will find that most embassies are located in two locations within Cairo which are Zamalek and Maadi because both locations offer natural appealing locations for each embassy. From the many embassies you can find in Maadi, here are a few that you can find within the beautiful natural district of Maadi:

Embassies in Maadi

• Embassy of Mexico
• Embassy of Philippines
• Embassy of The Republic of Azerbaijan
• Embassy of South Africa
• Embassy of Venezuela
• Embassy of Japan

From the many international schools that you can enroll your children, here are a few international schools you can put into consideration that have a very respected and trusted history with many expats such as:

International Schools in Maadi

• Cairo American College
• French International School In Egypt
• Malvern College Egypt
• New Cairo British International School
• Maadi British International School

The best two locations within the district of Maadi would be Sarayat El Maadi and Degla El Maadi…

New Cairo

Many foreigners since New Cairo has expanded within the capital of Egypt, there have been many new adjustments such as offices that have relocated and educational schools/universities that have always provided the best education throughout the country of Egypt such as:

International Schools in New Cairo

• American International School (A.I.S.)
• New Cairo British School (N.C.B.S.)
• Modern English School (M.E.S.)
• The International Schools of Choueifat
• Canadian International School in New Cairo

International Universities in New Cairo

• Future University in Egypt
• American University in Cairo (A.U.C.)
• German University in Cairo (G.U.C.)
• British University in Cairo (B.U.C.)
• Canadian International College (C.I.C.)

2. Property

If you choose to rent a property in Egypt, there are three options:

• Furnished
• Semi-Furnished
• Unfurnished

Types of Property

• Ground Floors
• Apartments
• Duplexes
• Penthouses
• Villas

Furnished

If you are looking to rent a furnished apartment, that would mean that everything in the property should be equipped from the furniture in the reception to the bedrooms with mattresses and kitchen utilities that are provided by the landlord of the property.

You should put into consideration that when you choose to rent a furnished property that the responsibility of the landlord is to provide you with everything fully functioning and is not responsible after the first month’s trial period in case the tenant is not taking care of the belongings of the property and would require the property to be repaired often.

Semi-Furnished

If you are looking to rent a semi-furnished apartment, that would mean it could either have some furniture in the rooms or reception or no furniture at all but all the kitchen utilities and air conditioning units are provided by the landlord of the property. When choosing to rent a semi-furnished property, the landlord is required to make sure that all the utilities are functioning so that the tenant can have a pleasant stay in their property.

Unfurnished

Unfurnished properties are either provided with fixtures and fittings, kitchen cupboards, sinks and bathroom fixtures are provided by the landlord or certain aspects can be provided and are detailed further in the contract as both parties would agree that these items have been placed to the tenant in a certain condition and would be returned in the same manner.

3. Price

Every property has a certain price that would not exceed the owner’s expectations and it is obviously in the best interest of the owner to rent their property but not for any price either. When it comes to the price of the property, it obviously depends highly on the owner’s acceptance but as well as the successful real estate agency that is dealing with the request of the property as well.

You should consider if you are looking for a property for rent in Cairo, you could always offer to pay advance payments such as quarterly, half or even a full year if you have the expenses and you are highly interested in this property and it could give you a good price with the owner if it is discussed ahead of time.

If you are looking for the best prices for apartments you should consider a real estate agency that you can trust and that has your best interest at all times with the real estate services that are provided to you during that time.

Rental Agreement

Once you have found the property that is best for you then you would have to consider writing a rental agreement that should be detailed and include all the following information about both parties, landlord and tenant.

First Party (Landlord)

• Name of the Landlord
• Nationality of the Landlord
• Residence of the Landlord
• National Identification of the Landlord

Second Party (Tenant)

• Name of the tenant
• Nationality of the Tenant
• National Identification/Passport Number of the Tenant
• Issued date of the Identification presented by the Tenant

You will find above the basic information that should be provided to proceed with the rental contract between both parties. There should also be a documented photograph of both parties with the identification documents presented.

When signing the rental agreement, you should read it carefully and take your time and not be stressed having to sign a document that you might regret later if there are any details that don’t cover your benefits legally. When choosing to deal with an experienced real estate agency, you will find that the final meeting of the contract is delightful and full of smiles as both parties received what is fair upon their requests.

You have been through all the basic information that should be provided to carry on with the contract signing, comes the clauses that you need to concentrate and read thoroughly such as:

• Location of Rental Property
• Duration of Lease (Start and End Dates provided)
• Rental Value of the Property and if there is an annual increase
• Method of Payment
• Security Deposit
• Duties of the First Party
• Duties of the Second Party
• Contract Termination
• Notice Period
• Additional Clauses
• Signatures of both parties

You will find above all the necessary information that should be finalized and completed before any rental contract is agreed upon and if the case that this information is not provided in the contract agreement, you might be facing problems with both parties in the future.

The location of rental property shall be provided with full detail with the apartment number, building number, road number and district written clearly in the language of your choosing.

The duration of lease shall be presented in either numerical or alphabetical order and sometimes can be provided with both manners to secure the interest of both parties.

The duties of the tenant is that the tenant should be responsible to pay all the bills such as electricity, gas, telephone and internet bills that will occur during the rental duration. Another duty by the tenant is that they should examine everything within the premise of the property to ensure that they have received what they have agreed upon whether documented or verbal.

Additional Clauses can be discussed ahead of time with both parties through the real estate agent that is finding what is mutually fair between the landlord and the tenant. In the case that there can be a certain aspect that can be forgotten and it can be written by hand or documented ahead of time in such of repairs, furniture to be removed or added. After all this has been agreed upon, you can finally sign the contract between both parties where they are both satisfied and content with their mutual agreement.

What to Avoid When It Comes to Dealing with Brokers

Every person has their own different needs, preferences and sometimes circumstances that they would have to abide by. That is why you should always avoid any real estate agent or broker that deals with you blindly without having to take your case into serious consideration. Most real estate agents would hear your rental duration and maximum budget and blindly offer you properties that might not even interest you in the first place. Try to avoid these real estate agents because they would end up wasting your time and sometimes money in return.

Last but not least, the majority of the real estate agents that you would deal with in Egypt, would look forward to finalizing the deal with their client and never hearing or speaking to them again after that even if they will be facing issues with what they were recently promised throughout that real estate rental transaction.

How to Know You Are Dealing with a Professional Real Estate Agency

When it comes to the field of real estate, nobody will confess to you their weaknesses but always point out their strengths. An experienced professional real estate agent would ask you all the right questions needed so that they can provide you with the best properties and prices upon your request. They would explain to you what you need to understand within every property and what the landlord is expecting from their future tenants as well as what the client is expecting from the landlord.

The Duty of a Real Estate Agent

Once a real estate agent has been requested from a potential client, they would have to contact you and consider it their duty to present you with almost everything that you have requested. Some clients wouldn’t know the real estate market much so then they would have to be taught and educated about the ins-outs of the properties and roads that follow.

A professional within the field will be with you every step of the way, from the first phone call to the signatures on the contract – you must understand that the real estate agent is considered a “middle-man” in the transaction so in return they should be expected to have the best interest of both parties.

With the ability to have a wide frame of database of all the properties that can be presented for rental use, you will find that the best real estate agent that can assist you will be realistic and honest with you about the services that they can provide for you.

What is the Rental Commission and Do Both Parties Have to Pay the Bill?

A topic that haunts many people that deal with real estate brokers/agents in Egypt is what is the exact amount for the commission and who is responsible for this payment. You should understand that the broker/agent is only owed a commission as long as they were the ones who originally showed you the premises to the client. Many clients would choose different brokers so that they can understand what is their best option to rent and in return can go behind the past broker/agent in the case that the present agent/broker can offer them less commission or a better price of the property being presented. In some cases, a broker can actually ask for justice legally through the landlord or client as they have been unethically mishandled while they were just doing their jobs.

It is obviously always better to pursue other agencies in the case that you have not found the perfect place for yourself or have to understand if that first agency was the best fit for you or not.

In the case of the commission of the rental property, the landlord is responsible to pay to the real estate agent/broker who has finalized the deal for their property the sum of about 10% of the deal that has occurred.

Commission Table

Party	Lease Term	Commission Fee
Landlord	6 months or less	10 percent of the rental payment as brokerage commission
Landlord	1 year and more	The rental amount of 1 month as brokerage commission
Tenant	6 months or less	5 percent of the total amount paid during the rental period as brokerage fee
Tenant	1 year or more	10 percent of the total amount paid during the rental period as brokerage fee.

You should understand that many real estate brokers/agents can negotiate the price of their commission just to have to finalize the deal with itself. But the above table is presented to clarify that if the client is a single entity looking to rent then they are responsible for the payment method above. But they are presented with a governmental organization, educational institute or even foreign affairs – these fees do not apply as these respected organizations/institute/corporations are in direct terms with the agency so in return they would have the ability to allow both parties to benefit from such a transaction.

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