Syria’s old rents: landlords, tenants at odds

ANHA agency correspondents in Damascus have observed renewed debate over the issue of tenancy rights and old rental contracts in Syria, particularly in the capital’s markets and those of other governorates. Disagreements between property owners and tenants continue over the rights arising from rental contracts subject to statutory extension, amid calls for balanced legal solutions that safeguard the rights of both landlords and tenants while maintaining market stability and protecting the livelihoods of those working in these markets.

The issue of tenancy rights and old rental contracts is considered one of the long-standing unresolved matters that periodically return to the forefront. Concerns and demands resurface with every legislative discussion concerning the future of old rental contracts, particularly in Old Damascus and commercial markets across the various governorates.

The practice of paying tenancy rights emerged decades ago as a form of compensation commonly recognised in certain circumstances. It was paid either when a tenancy began or when the leased property was transferred to another tenant. Over time, it developed into an established commercial custom, often associated with financial rights transferred between tenants through sale, assignment and inheritance, while the underlying ownership of the property remained with the landlord.

An imbalance in the relationship between landlords and tenants

Tahseen Al-Sibai, a man in his seventies and one of the owners of a property for which tenancy rights had been granted, said that Syria’s old rental system had created a significant imbalance in the relationship between landlords and tenants. This was due to the absence of clear standards for determining rents and the considerable discrepancies in property valuations, even within the same building.

He added that old rental contracts, which are divided into commercial and residential leases, have remained in force for decades. Property owners are unable to terminate the tenancy or collect rent that reflects the property's actual value and prevailing market rental rates.

Al-Sibai also pointed to the deaths of property owners and disputes among their heirs over ownership, in addition to the numerous property sales and purchases that have taken place. A tenant may sell a shop together with its tenancy rights, whereas the owner of a house or shop is unable to dispose of the property freely.

He recounted his experience with property valuation committees, explaining that his house was valued at 450 million Syrian pounds, while its annual rent was assessed at 3.5 million pounds. He noted that most valuers lack sufficient professional expertise and are unable to establish precise valuation standards, uniform criteria or clear pricing guidelines, resulting in inconsistent and unfair rental assessments.

He said that the tenancy rights remains extremely difficult to resolve and is simply carried over from one contract to another. It has now resurfaced, prompting renewed calls for a solution. He added that the new authorities have so far been unable to find solutions to this complicated issue and have resorted to forming committees and taking similar measures, leaving the matter without a definitive resolution.

He stressed that resolving the problem involving residential properties is possible through mutual agreement and by granting the tenant a certain percentage. However, the situation is far more complicated when it comes to commercial shops, as a business may have established a brand, built a customer base and developed commercial goodwill. Such arrangements are highly complex and command very high prices under established commercial practices, making them difficult to assess.

He pointed out that the tenancy rights system for commercial shops in Damascus had become an established commercial custom. The property owner would receive more than 90 per cent of the property's value.

Property-related rights have passed into the hands of multiple parties because commercial real estate practices recognise tenancy rights as a form of ownership right, one that is documented and commonly transferred through buying and selling.

He added that some traders had purchased their properties for billions of Syrian pounds before the tenancy rights was brought under discussion, asking: "How can they be expected to give up the property?" He also noted that the circumstances governing this type of ownership are numerous and cannot be reduced to a single category.

Legal experts warn against one-size-fits-all solutions

Retired legal expert Ziad Abdul Rahman stressed that the statutory extension of tenancy rights related rental contracts emerged through legislation that kept certain leases in force for decades at low rental rates, while restricting landlords' ability to reclaim their properties. This resulted in an imbalance in the relationship between landlords and tenants, and led some tenants to feel that their right to remain in the property had become permanent.

Abdul Rahman said that the issue of tenancy rights and old rental contracts had evolved over time into a complex matter, particularly as rights were passed on to heirs, documentation was missing in some cases, and the circumstances surrounding residential and commercial properties became intertwined.

He emphasised the need to distinguish between residential homes and commercial shops, explaining that a commercial establishment is not limited to the physical property it occupies. Rather, it may be associated with a business venture, commercial reputation, customer base and brand identity. Therefore, applying uniform solutions or terminating all contracts at once could result in the loss of rights or create new injustices, in addition to causing extensive economic and legal repercussions.

He noted that addressing the issue requires the state, during the transitional period, to correct longstanding legislative imbalances while avoiding imposing additional burdens or sudden changes on landlords and tenants.

The legal expert said that the tenancy rights should be addressed as part of a broader national policy on housing and property rights, rather than through isolated or rushed decisions. He proposed establishing an independent national mechanism to examine individual cases, assess rights according to clear criteria and adopt flexible methods of proving those rights, particularly given the shortage of documentation relating to some old contracts.

He added that what is needed are gradual and transparent solutions that restore balance between the parties, without forcing people to bear the consequences of previous policy failures or allowing the proposed remedies to create new forms of injustice.

For his part, real estate expert Ammar Dhari'a confirmed that contracts subject to statutory extension are agreements concluded under previous laws and have remained in force in accordance with the provisions governing legal extensions.

Regarding residential properties, he pointed out that the law currently in force has not undergone any changes in this respect so far. Eviction may be possible in certain specified cases, provided that the tenant receives compensation calculated in accordance with the law and the applicable procedures. He noted that the commonly cited compensation rate of 40 per cent of the property's appraised value should not be applied universally to all cases, as its applicability depends on the conditions and circumstances of each legal claim.

He added that commercial properties, including shops associated with tenancy rights, present a different set of challenges. Some old contracts may remain in force for many years at low rental rates, while the rights or obligations associated with these contracts are passed on to heirs.

He cited the example of a shop on Al-Thawra Street, whose annual rent, he said, amounts to approximately one million Syrian pounds. This amount may be divided among several heirs, leaving each of them with only a limited sum.

He stressed that comparing residential and commercial properties is essential to understanding the issue. The continuation of certain commercial contracts under these conditions creates a sense of injustice among property owners, while tenants fear losing their livelihoods or the rights they believe they have acquired over time.

He concluded by emphasising that resolving the issue requires careful legal examination that balances the rights of landlords and tenants, takes into account the differing circumstances of properties and contracts, and avoids applying a single ruling to all cases.

Government Committee: review underway, but no decision to terminate contracts

Regarding government measures, individuals following the old rental contracts issue confirmed that the Ministry of Justice has not issued any decision to terminate statutory lease extensions or order the eviction of commercial shops. Rather, the measures have been limited to establishing a committee to examine commercial rental contracts subject to such extensions and consider the amendments required to the current law.

Tenants interpreted the formation of the committee as a sign that their contracts might soon be terminated or that the rights associated with them could be abolished. This raised concerns among traders about the stability of their businesses and sources of income. Meanwhile, a number of property owners believe that the prolonged continuation of rental relationships has restricted their right to benefit from their properties and reclaim them.

They explained that some tenants sublet properties for amounts far exceeding the rent they pay to the landlord. Meanwhile, Tenancy rights attached to commercial shops are sold for hundreds of millions of Syrian pounds, while in many cases the property owner receives only a limited share of the proceeds, or has no effective right to object to the transfer of those rights.

They stressed that any forthcoming amendment should be based on the principles of justice and balance and should not come at the expense of either the landlord or the tenant. They also emphasised that rental relationships cannot continue indefinitely and that the issue must be addressed in a way that safeguards rights and limits disputes.

Observers noted that the committee may seek assistance from any parties it considers appropriate. Its work remains at the consultation and review stage, focusing on the existing legislation. No draft law or final amendment proposal has been issued by the committee so far.

Approximately 100 traders also gathered outside the Ministry of Justice, and a delegation entered to meet with the minister. According to participants, the delegation emerged with assurances that the formation of the committee did not mean that a decision had been made to evict them from their shops.

On 12 June 2025, the Ministry of Justice issued Decision No. 856 establishing a specialised committee to examine the legal issues relating to rental contracts subject to statutory extension, whether the properties are owned by individuals or the state, and whether they are leased to individuals or the state.

The committee was tasked with reviewing the legislative instruments and regulations currently in force concerning these contracts and submitting proposals to resolve the issues associated with statutory lease extensions. Its work is to be based on the nature of the rental contract and the legal provisions governing the relationship between the parties, in a manner that ensures fairness for all concerned.

Ammar Al-Bardan, Secretary of the Damascus Chamber of Commerce, told property owners that the purpose of the meeting was to elect a committee comprising owners of shops with Tenancy rights. The committee would be responsible for conveying their problems and proposals to the Ministry of Justice through the Chamber, organising communication with the relevant authorities instead of relying on individual contacts, and keeping traders informed of the outcomes and developments of meetings.

Legislative background: How did the statutory extension crisis emerge?

The roots of the legal problem can be traced back to a series of legislative measures regulating rental relationships in Syria. The most notable of these was Legislative Decree No. 111 of 1952, which established the principle of statutory extension for rental contracts and restricted landlords' ability to terminate tenancy agreements or adjust rental rates in line with prevailing market prices.

With the issuance of Law No. 6 of 2001, followed by Law No. 10 of 2006, Law No. 32 of 2011 and, ultimately, Law No. 20 of 2015, legislation moved towards restoring the principle of freedom of contract for new rental agreements, while leaving old contracts subject to statutory extension provisions and introducing legal mechanisms for terminating certain rental relationships in exchange for financial compensation to tenants.

Hama: property valuations open a new front in the tenancy crisis

The debate has not been confined to Damascus but has extended to other governorates. In Hama, a crisis emerged in 2026 concerning the assessment of rental rates for commercial shops subject to statutory extension, following the adoption of schedules setting out prevailing property values.

According to local accounts, the process of preparing these schedules began on 31 December 2025, when the head of the Hama branch of the Engineers Syndicate issued Decision No. 199/1, establishing a committee of seven engineers to determine the appraised values of commercial and residential properties, as well as agricultural land, across the governorate.

Latest Government Developments and the Ministry of Justice's Position

The most significant publicly announced government measure concerning this issue remains Ministry of Justice Decision No. 856/L, issued on 12 June 2025, which established a committee to examine the legislative instruments and regulations currently in force concerning rental contracts subject to statutory extension.

No new law has been issued to terminate statutory extensions for old rental contracts, no decree has been enacted to abolish tenancy rights, and no general circular has been issued ordering the eviction of commercial shops covered by these contracts.

Furthermore, the measures taken in Hama during 2026 concern judicial property valuation mechanisms and rental rates; they do not constitute a general decision to terminate Tenancy contracts in the governorate or anywhere else in Syria.

ANHA