In Algeria, a written lease is mandatory for renting a property, as per the country's civil code. The code defines a lease as a contract where the landlord gives a property to the tenant for a specific period in exchange for rent. The law, which came into effect in 2007, requires the lease to be in writing with a certain date, and if not, the contract is considered null and void. This law aims to provide clarity and protection for both landlords and tenants.
The lease contract must be registered within a month of its date, and this registration is subject to a fixed fee of 1,500 Algerian Dinar (DA). The registration provides the contract with a certain date that is incontestable and binding on third parties. For contracts signed before the 2007 law, they were governed by the old legislation for ten years, until May 2017. However, tenants aged 60 and above in 2007 have the right to remain in the property until their death.
The lease contract has a specific duration, and it automatically expires at the end of that period. Neither the landlord nor the tenant needs to give notice for the contract to end. If both parties want to continue the lease, they must sign a new contract. The lease does not automatically transfer to the tenant's heirs, but it continues until its term unless there is a contrary clause. In case of the tenant's death, the heirs who have been living with the tenant for six months can terminate the contract.
Tenants who want to terminate the lease before its expiration must give a two-month notice period to the landlord through a judicial act, i.e., through a court bailiff. A simple letter or message is not sufficient to terminate the contract. The tenant can terminate the lease for any family or professional reason, such as a job transfer, marriage, or change in family situation.
In practice, many landlords require an advance payment of several months' rent, and the civil code does not set a ceiling for this advance. However, the code allows the parties to agree on a guarantee to secure the rent and charges. Tenants must obtain a receipt for each payment, and in case of a sale, the new owner may not recognize the advance payment if the tenant knew about the sale.
The landlord is responsible for maintaining the property and making necessary repairs during the lease period, except for repairs that are the tenant's responsibility. The tenant is responsible for paying rent on time and must not modify the property without the landlord's written consent. The tenant must also not sublet or assign the lease without the landlord's written consent.
The landlord is required to insure the property against natural disasters, as per an ordinance from 2003. The landlord must pay a 7% tax on the rent received from a residential property, and this tax is considered a liberation of tax liability as long as the rent does not exceed 600,000 DA per year. The tenant and landlord must also agree on the distribution of consumption charges, such as water bills.
Key points
- A written lease with a certain date is mandatory for renting a property in Algeria.
- The tenant must give a two-month notice period to terminate the lease contract.
- The landlord is responsible for maintaining the property and paying taxes on the rent received.
