Have you recently decided to rent out your property in Cyprus and are you trying to decide whether to rent it out as a residential let or a holiday let. If so then you might find the following of interest.
Firstly the Law in Cyprus is definitely on the side of the Tenant rather than the Landlord and renting out a property in Cyprus is some what different to renting out a UK Property.
A deposit is required typically for 1 months rent although sometimes you can ask for 2 months rent.
Duration of Tenancy
A normal period for a tenancy starts at 12 months that on the plus side does give you an expected rental income every month. However if you are intending to use your property for your self or take it back at the end of the 12 month contract then you really need to read on because it is not that simple.
Is Your Property Subject to the Rent Control Law of 1983
If your property was completed before 29 December 1995 and is situated within towns, suburbs and rural centres the legal definition being “Controlled Areas” then it would come under the Rent Control Law of 1983 and any updated amendments, rather than the “Free Market”. That is unless you are a foreigner.
Foreigners (unless you are a non-Citizen wife of a citizen of the Republic) are not covered by the provision of the law and therefore cannot benefit from the Rent Control Law protection.
So what Rights do You have as a Landlord in Cyprus
It used to be that if you were a foreigner you couldn’t rent out a property in Cyprus but after the EU negotiations and subsequent admission into the European Union this changed however to my knowledge if you are a non-EU property owner you still can not rent out property.
The law really seems to be stacked on the side of your tenant rather than you as a landlord.
Can I evict a Tenant
It is fairly difficult to evict a tenant. The Rent Control Law brought in the ‘Statutory Tenant’ which is the person who at the end of the first tenancy under the limits of “Rent Control Law” stays in possession of the property. You can only evict a statutory tenant for the following three reasons.
1. If the tenant fails to pay their rent
2. If the Landlord needs the property back for themselves or members of their own family or dependent parents
3. If the landlord intends to knock down and rebuild the property or make such substantial changes and alterations or reconstruction that involve the repossession of the property in order to carry out the work if it is absolutely necessary.
And even then the Landlord may be ordered to grant the tenant (in the form of damages) the right to a new tenancy in the newly rebuilt property by the Rent Control Court. And the landlord may also have to pay damages to the value of 9 to 18 months rent, and /or damages for the loss of any goodwill if the Court decides to award this too.
For property built after 1995 the terms of the contract apply.
What If Your Tenant Doesn’t Pay their Rent How Long is it likely to Take to Evict Them?
Until completion of service of process the duration is 60 days
The Duration of trial 120 days
The Duration of enforcement 180 days
Total Number of Days to Evict Tenant 360 days
This seems an excessively long time to be housing a tenant who is not paying you any rent and if you have a mortgage then it could cause you a massive problem.
Can I increase the Rent on My Property
After the first 12 months contract has ended you can increase the rent by a maximum of 14 per cent but then only if it has been at least 2 years since the last increase in rent.
Long Term Rental
You may prefer to rent your property long term especially if you know that you will not be wanting to use it much for yourself and need a monthly rent to help to cover your mortgage costs.
Or perhaps you have bought it purely as an investment property with no intentions of using it yourself in which case a long term rental may be ideal.
If however you are wanting to use the property yourself either now or in the future it is worth bearing in mind especially with the “statutory tenant” ruling that long term rental may not be suitable.
Maybe you might like to look into the Holiday Rental Market although of course this is more likely to be seasonal and you will not get a guaranteed a monthly amount. You may also find that your property is occasionally left empty so you will need to check that your property insurance covers periods of non occupation. On the plus side any empty periods may allow you the opportunity to take time off and visit your property for yourself and your family.