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The Rent Control Law (1983)

Tenancy agreements under the Rent Control Law

The Rent Control Law (1983) applies to tenancies of residential or business premises which lie within the areas controlled by the Rent Control Law, so called “Rent Controlled Areas”. Rent Controlled Areas comprise of premises located within all major municipalities of Cyprus.

For a tenant to become a statutory tenant the premises must have been completed by the 31/12/1999 the tenancy must be expired and the tenant remains in possession of the property.

A statutory tenant is protected by the law and cannot be evicted from the premises except in cases provided by the Rent Control Law, 23/1983. Particularly, a statutory tenant can be evicted mainly in the following cases:

(1)   The tenant does not pay the agreed rent. When the rent is in arrear for more than 21 days and after a written notice demanding payment by the landlord the tenant fails to pay any amount due within 14 days after receiving the notice.

(2)    When the landlord reasonably requires the property to live in and use it for himself, his spouse, children or dependent parents.

(3)   When the tenant is found guilty of disorderly conduct (i.e causing annoyance in the neighborhood, allowed the use of the property for illegal and immoral purposes)

(4)   For preservation or restoration works of the premises.

(5)   When the landlord decides to demolish it and construct a new building.

(6)   When the tenant subleases the premises without the permission of the landlord.

(7)   When the tenant either by the rent collection or subleasing of the property (or part of the property), realizes profit (direct or indirect) that is disproportionate with the rent payable to the landlord.

In the case of a statutory tenant, the terms of the lease agreement remain valid except the period of the tenancy and the amount of the rent payable which are regulated by the Rent Controlled law. This law prevents the landlord from taking advantage of his position to demand high rent or to seek possession of the property.

The law states that the maximum rent increase which can be imposed upon expiration of a statutory tenancy shall not exceed the 90% of the average rent price in the area where the premises are situated or an increase of 8% (previously 14%), whichever increase is the higher. Most often the period of the tenancies is for two years.

Our opinion regarding the existence of this law is that it maintains a balance between the rights of the landlords and the tenants. Finally, it maintains stability and peace in the rental and businesses markets.