A significant shift in Lebanon’s rental landscape came with the issuance of Law No. 1 dated April 3, 2025, which regulates leases for non-residential premises whose original terms expired before July 23, 1992.
This law applies to properties leased for non-residential purposes such as commercial, industrial, professional, or craft-related activities, and aims to bring long-overdue clarity to a domain that has long been marked by legal ambiguity and conflict between landlords and tenants.
What Does the Law Cover?
Article 3 addresses lease extensions, detailing the duration and conditions under which a lease may be extended.
Articles 4 and beyond lay out the mechanism for calculating legal increases to rent.
By setting a clear structure, the law seeks to resolve longstanding disputes between property owners and tenants of commercial premises and to redefine the legal relationship moving forward.
Once the legally defined extension period ends, tenants must either vacate the premises or negotiate a new lease based on Free Contracting Law No. 159/1992 and the Law of Obligations and Contracts.
Amicable or Judicial Enforcement
The law allows for implementation through either mutual agreement or legal proceedings, depending on the willingness of both parties. However, it emphasizes the importance of a balanced and responsible approach.
For landlords, the opportunity lies in recovering property or adjusting the rent to reflect current economic realities.
For tenants, the concern often centers on preserving a longstanding business location that carries both operational and brand value.
Our Perspective
At Issa-Mansour Law Office, we advocate for amicable resolutions wherever possible. We believe that landlords and tenants who approach the implementation of this law with openness and mutual respect can reach outcomes that protect both property rights and business continuity.
Need Guidance?
With deep experience in rental disputes and commercial lease agreements, our team is ready to assist; whether through legal representation or through mediating balanced settlements that respect the interests of both parties.