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- For 2026/27, Addis Ababa caps rent increases on renewed residential leases at 11.5%.
- Leases must run at least two years and be registered at the woreda housing office.
- Landlords may raise rent only once a year and may ask for no more than two months in advance.
- Newly built homes are exempt from the increase cap for up to four years.
Since 2024, residential renting in Ethiopia’s cities has been governed by the Residential House Rent Control and Administration Proclamation No. 1320/2024, and in Addis Ababa by the city’s Directive No. 7/2024. Here is what the rules mean in practice for tenants and landlords, and what changed for 2026/27.
The 11.5% cap for 2026/27
Each year the city housing bureau sets the maximum rent increase. For 2026/27 it is 11.5% for privately owned residential homes, applied when leases are renewed. On a 100,000 ETB rent, the most a landlord can ask at renewal is 111,500 ETB. Renewal registration ran from July 8 and was extended to September 5, 2026.
Increases are allowed once a year, and the landlord must notify both the tenant and the housing office in writing. No increase was approved for 2024/25.
Minimum two-year leases
Residential leases must run for at least two years, and renewing and registering them every two years is mandatory. Landlords may not end a lease simply because it expired in order to re-rent the home at a higher price.
How much advance rent is legal?
The proclamation limits advance rent to two months. In practice many landlords still ask for six months or a year. Tenants can refuse; if you agree to more, make sure every payment is written in the contract and paid through a bank so you have proof.
Registering your lease
Every residential lease must be registered — in hard and soft copy — at the sub-city or woreda housing administration office (or an Addis Mesob one-stop centre). Bring:
- The signed lease (it must name both parties, the address, the rent and the condition of the house)
- Valid ID for both parties: Fayda/kebele ID, passport, work ID or driving licence
- The landlord’s proof of ownership, such as the title deed
- A power of attorney if an agent registers for you
Registered leases are also used for tax: Addis Ababa’s revenue bureau expects landlords to register every lease and receive rent through banks or digital payments.
What happens if the rules are broken
Tenants can complain to the woreda housing office in person, by phone or in writing — for example about renting without a valid contract, charging more than the contract, raising rent outside the rules, or ending a lease contrary to the law. Penalties under the directive range from one to three months’ rent.
What the law does not cover
- Commercial property (offices, shops) — rent is agreed freely.
- New buildings — exempt from the increase cap for up to four years.
- Government-owned housing follows its own rules.
This guide is general information, not legal advice. For a specific dispute, ask your woreda housing office or a lawyer.
Rent with a registered, fair contract
RealEthio prepares a clear written lease and helps you register it.
Frequently asked questions
The cap applies to renewals of existing residential leases. Rent for a brand-new tenancy is agreed between the parties and then registered.
Not simply to re-rent at a higher price. Leases must be renewed and registered every two years, and complaints can be filed with the woreda housing office.
Yes. Residential leases must be registered at the housing administration office. Registration also protects you if there is a dispute.
New buildings are exempt from the increase cap for up to four years.
Sources (checked October 2026)
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