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The Debate Over Extending Lebanon’s Old Residential Rent Law: Tenants Call for a Three-Year Grace Period

The Debate Over Extending Lebanon’s Old Residential Rent Law: Tenants Call for a Three-Year Grace Period

Veraluxe Series | Digital Real Estate Marketing & Real Estate Culture

By Muhammad Itani Founder & Strategic Director, Veraluxe


Introduction

Lebanon’s long-standing dispute between landlords and tenants under the old residential rent regime has entered a critical phase. Following the expiry of the principal extension period foreseen under the amended rent law, tenant associations and housing advocates have intensified calls for an additional three-year extension to protect vulnerable households from displacement and housing insecurity. Meanwhile, legislators continue to examine proposed amendments amid legal uncertainty and conflicting judicial interpretations.

Background: What Is the Old Rent Law?

The old rent regime applies primarily to residential leases signed before 23 July 1992. These contracts remained subject to special legal protections under the Rent Law of 2014, amended by Law No. 2/2017, which introduced a gradual transition from controlled rents toward market-based rents.

The law established:

  • A nine-year extension period for most old residential leases.
  • A potential twelve-year period for tenants eligible for assistance from the Tenants’ Support Fund.
  • A gradual increase in rent toward what the law defines as “fair rent.”

Expiry of the Nine-Year Extension

According to several court interpretations, the nine-year extension period ended on 28 February 2026. Some appellate courts have subsequently upheld eviction rulings based on this interpretation. However, legal opinions remain divided because courts have not reached a unanimous position on when the extension period should legally commence.

A further complication arises from the fact that the Tenants’ Support Fund, envisioned by the law to assist low-income tenants with rising rents, has never become operational. Committees required to administer the fund have also not been fully established.

Why Are Tenants Requesting a Three-Year Extension?

Tenant groups argue that implementing evictions before activating the support fund would undermine the very protections intended by the law. They maintain that thousands of families remain unable to absorb market-rate rents amid Lebanon’s prolonged economic crisis.

The demand for an additional three-year extension is largely based on Article 16 of Law 2/2017, which allows eligible low-income tenants to request a new lease period of up to three additional years under specified conditions. Such requests were required to be made in writing before the expiry of the original extension period.

Housing advocates contend that the failure to implement the support fund justifies preserving tenants’ rights until the law can be fully executed as originally intended.

Law 46/2026 and the Suspension of Deadlines

An important development occurred in July 2026 when Parliament adopted Law 46/2026, suspending various legal, judicial, contractual, and administrative deadlines between 1 March and 31 July 2026.

The impact of this law on old-rent tenants remains controversial:

  • Tenant advocates argue that it effectively provided an additional opportunity for tenants to preserve their rights and submit requests related to the support fund and three-year extension.
  • Representatives of landlords dispute this interpretation and maintain that the original extension period had already expired before the suspension took effect.
  • As of October 2026, no final judicial ruling had definitively resolved the issue.

Current Legislative Review

Recognizing the practical difficulties arising from the non-implementation of the support fund, the Parliamentary Administration and Justice Committee has continued examining draft amendments to the old residential rent law throughout 2026. Discussions have focused on:

  • Protecting vulnerable tenants.
  • Ensuring fairness to landlords.
  • Addressing the absence of the support fund.
  • Revising implementation mechanisms within the current law.

However, no legislative amendment granting a general three-year extension has yet been adopted. Parliament continues to study proposed reforms.

Legal Uncertainty Continues

Today, Lebanon finds itself in a period of significant legal ambiguity regarding old residential leases. While many courts have treated the nine-year extension as having ended in February 2026, other legal arguments remain under consideration, particularly concerning fund-eligible tenants and the consequences of the state’s failure to establish the support mechanisms required by law.

For both landlords and tenants, the evolving legal landscape highlights the urgent need for comprehensive legislative solutions that balance constitutional property rights with the fundamental right to housing.

Conclusion

The debate surrounding the extension of old residential leases represents more than a legal dispute; it reflects broader social and economic challenges facing Lebanon. Tenant organizations continue to advocate for a three-year grace period, citing the absence of the support fund and worsening economic conditions. At the same time, landlords seek clarity after decades of frozen or heavily regulated rents. As Parliament reviews proposed amendments, the future of thousands of Lebanese families and property owners remains tied to one of the country’s most sensitive housing policy issues.


VERALUXE SERIES Digital Real Estate Marketing & Real Estate Culture

Author: Muhammad Itani Founder & Strategic Director, Veraluxe

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