Rental Agreements in Cyprus: A Complete Guide to Landlord and Tenant

Rental agreements in Cyprus can be complex. Whether you are a landlord or a tenant, understanding rental contracts is key to protecting your rights. This guide offers expert insights into the essential aspects of rental agreements in Cyprus.

What is a Rental Agreement?

A rental agreement, also known as a lease, is a contract between a landlord and a tenant. It sets out the terms and conditions under which the tenant will rent the property from the landlord. This includes the duration, rent and responsibilities of both parties and more.

Main Terms of a Rental Agreement

Understanding the main points of a rental agreement is important for both landlords and tenants as these points govern the mutual responsibilities and expectations during the tenancy. Here are the main points:

1. Duration of the Lease: This sets out the start and end dates of the tenancy, clearly stating how long the tenant has the right to occupy the property. It gives the tenant stability and the landlord a predictable occupancy period.
2. Renewal Options: This clause covers whether the tenant has the option to extend the lease beyond the initial term. It sets out the conditions under which the lease can be renewed, including notice periods and any changes to the terms or conditions, so both parties are clear on the future of the tenancy.
3. Rent and Deposit: Sets out the monthly rent, due dates and the security deposit. This section also covers when the deposit can be withheld or refunded at the end of the lease, so both parties have financial clarity and security.
4. Utilities and Services: Sets out which utilities and services (water, electricity, internet, garbage collection etc) are included in the rent and which are the tenant’s responsibility. This prevents disputes over extra costs and helps tenants budget for ancillary expenses.
5. Property Maintenance: Sets out the responsibilities of both the landlord and the tenant for the upkeep of the property. Typically the landlord is responsible for major repairs and structural maintenance and the tenant for daily maintenance and minor repairs so the property is kept in good condition throughout the tenancy.
6. Subletting and Assignment: This clause covers whether the tenant can sublet the property or assign the lease to someone else. It’s important to control who occupies the property and under what terms so the landlord has security and consistency.
7. Restrictions: Sets out any limitations on how the property can be used. This includes rules on pets, smoking and alterations to the property. Restrictions are important to keep the property in good condition and used in a way that is in line with the landlord’s wishes and regulatory requirements.
8. Notice for Termination and Renewal: This clause sets out the notice period required by either party to terminate the lease or notify of their intention to renew. It’s important for planning and gives both parties time to prepare for the transition, whether it’s finding new tenants or moving out.
9. Late Payment Penalties and Grace Periods: Sets out what happens if the rent is not paid on time, including any penalties or fees. This clause also covers any grace periods before penalties apply. Having these terms in place upfront ensures timely payments and clarifies the financial penalties for late payments and prevents disputes over rent arrears.
10. Right of Entry: Gives the landlord the right to enter the property to inspect its condition, make repairs and show the property to potential future tenants or buyers. This clause sets out how much notice the landlord must give the tenant before entering, usually 24-48 hours so the tenant has privacy but the landlord can manage the property.

Rights and Obligations of the Landlord

In Cyprus, landlords have specific rights and obligations under both statutory and contractual tenancy agreements. Below are the rights and obligations of the landlord:

1. Right to Reclaim: Landlords can reclaim the property under the following circumstances:
   • Non-payment of Rent: If the rent is not paid for more than 21 days after notice, the landlord can start eviction proceedings.
   • Personal Use: The landlord can take back the property for personal use, for themselves or their immediate family, after giving required notice.
   • Reconstruction: If the landlord intends to demolish or carry out major works that require the property to be empty, eviction can be pursued.
2. Right to Increase Rent: Under the Rent Control Law of 1983, landlords can increase the rent by up to 6% between 2023 and 2025. Increases above this require approval from the Rent Control Court which will take into account market rates, property condition and location.
3. Maintenance: Landlords are responsible to keep the property safe and habitable. They must address any hazards within a reasonable time to prevent further damage or deterioration.
4. Access and Inspection: Landlords must respect the tenant’s right to quiet enjoyment but can enter for inspections under reasonable circumstances and with notice.
5. Legal Requirements: Landlords must comply with all applicable laws including those for security deposits, rental agreements and safety standards.

Rights and Obligations of the Tenant

Tenants in Cyprus also have rights and obligations under both statutory and contractual tenancies. These ensure tenants can occupy the rental property safely and responsibly:

1. Timely Payment of Rent: Tenants must pay the rent on time as per the lease. Failure to do so can lead to legal action for eviction under the Rent Control Law.
2. Care and Maintenance: Tenants must take care of the property and not cause damage beyond normal wear and tear. They must not make unauthorized alterations or engage in activities that can damage the property.
3. Use of Property: Tenants must use the property for the purpose agreed in the lease. In commercial leases, this means to actively use the rented space for the intended business purpose to avoid lease cancellation.
4. Legal Activities: Tenants must ensure all activities on the property are legal. Illegal activities can lead to eviction and legal action.
5. Notification of Issues: Tenants must notify the landlord of any issues or repairs required as soon as possible to enable prompt maintenance and prevent worsening of existing problems.
6. Compliance with Rules: Tenants must follow all building rules and regulations including those for noise, use of common areas and subletting unless allowed in the lease.

Conclusion and How We Can Help

Understanding your rental agreement is vital for ensuring that your tenancy is secure and your rights are protected. Whether you’re drafting a new rental agreement or navigating a dispute, Polycarpos Philippou & Associates LLC can provide expert legal assistance. Our team is well-versed in Cyprus property law and can help ensure that your rental agreements are fair, compliant, and tailored to meet your specific needs.

For more information or to schedule a consultation, contact us. Let us help you make your rental experience in Cyprus secure and legal.