Property owners that rent out their houses, apartments and studios around the world are engaged in a market that is seen as favourable to landlords, which requires laws and regulations to balance the relationship between them and the tenants. Cyprus is no exception to this policy approach and has adopted a variety of rent-related legislation to protect tenants and guide landlords. The rights of the landlord to terminate a tenancy and evict a tenant depend (a) on the tenancy agreement, and (b) on whether the tenant is considered a “statutory tenant” or not.
The tenancy agreement
The tenancy agreement is the document that sets out all the terms of the tenancy. If the tenancy agreement allows for the landlord to terminate it, (e.g. through a break clause), or if the tenant breaches the agreement (e.g. by not paying for rent) the landlord could terminate the agreement (e.g. by providing notice in accordance with the agreement) and then evict the tenant through legal proceedings, if the tenant is not willing to move out.
Statutory tenants
The primary piece of legislation to consider here is the Rent Control Act (Law 23/1983), which was introduced after the Cyprus invasion for the specific purpose of protecting tenants (mainly refugees at the then current times) from landlords, restricting their ability to evict. In accordance with the Rent Control Act (Law 23/1983) statutory tenants are tenants (a) whose initial tenancy agreements have expired and continue to live in the property, or otherwise live in a property without a tenancy agreement, (b) the relevant property is located in “controlled areas” as stated in the legislation, and (c) the relevant property was completed before 31 December 1999. The Rent Control Act (Law 23/1983) prohibits any eviction and property recovery save for certain exceptions. For tenancies where all the above criteria are not satisfied, the principles of contract law in accordance with The Law on Contract (Cap. 149) apply.
If a tenant does not satisfy the criteria of the “statutory tenant”, then the tenant would be considered as a trespasser in the property after the conclusion of the tenancy, and the landlord would be able to proceed with eviction through legal proceedings.
So, when is a landlord allowed to terminate the tenancy and recover possession of their property from statutory tenants? A landlord may end such a tenancy in Cyprus under the Rent Control Act (Law 23/1983) when:
The tenant has not paid rent for more than 21 days, then has received a notice for due payment by the landlord and another 14 days pass without any payment taking place. (Section 11(a))
The tenant or resident has been found guilty of causing significant disturbance in the neighbourhood or has utilized the property in an immoral or illegal manner. (Section 11(b))
A court decides that the tenant has left the property in such a state of disrepair or deterioration to satisfy it that they have neglected it. The court will not allow the eviction to take place if the tenant completely repairs the property within 2 months of the landlord’s application to recover possession. (Section 11(c))
The tenant subleases the property without permission from the landlord. (Section 11(d))
The tenant has provided a notice to end the tenancy to the landlord and the landlord, relying on that notice, has contracted with a new tenant for this property. (Section 11(l))
A court finds that a tenant makes profit by either collecting rent or subleasing the property (or part of the property) that is disproportionate to the amount of rent owing to the landlord. (Section 11(e))
A court finds that the landlord wishes to utilize the property as a dwelling for themselves, their family or when the owner is a family business, any of its members. The court will base its decision on the reasonableness of the landlord’s desire to reside there, the discomfort that the eviction will create to the tenant and the tenant’s financial, social and health status. (Section 11(f))
The landlord wishes to utilize the property as a residence or business premises for them or their family and can prove that no other venue/property could be located with a reasonable rent rate. (Section 11(g))
The landlord reasonably requires the property in order to:
a. demolish it,
b. demolish it and construct a new property,
c. conduct major alterations or structural changes to the property, or
d. maintain or renovate a listed property.
For any of these actions the landlord is expected to have acquired the appropriate authorization. (Section 11(h))
When a court issues an order for the cases under points 8 and 9 above regarding a leased property operating as a business, it may also provide that the lessee is compensated by the landlord for the dispossession with an amount not surpassing the total of 18 months' worth of rent.
Legal process for evicting statutory tenants
In January 2020, the House of Representatives of the Republic of Cyprus had passed an amendment to the Rent Control Law, changing the process for evicting statutory tenants who do not pay their rent. The new law made it easier for landlords to evict statutory tenants by introducing a “fast-track” eviction process. In accordance with this new process, landlords can serve tenants with notices of 21 days whereby the tenants are asked to pay their rent debts. Where the debts are not paid, landlords can then make an eviction application to the court, and from this point, the tenant would have 14 days to provide evidence of the rent being made (this law shifts the burden of proof to the tenant, instead of the landlord). It should also be noted that decisions of the court granted through this process are not subject to appeal.
Termination of tenancy by the Cyprus Government or Local Authority
It is also important to note that on some occasions neither the tenant nor the landlord has a say in the decision to limit, suspend or terminate a tenancy. Such occasions arise when:
The property needs to be vacated in order to conduct major maintenance or improvements to listed properties in accordance with urban planning laws.
The property needs to be expropriated by the Government under the Compulsory Acquisition of Property Act (Law 15/1962).
The property is required by Local Authorities to conduct their legal duties towards the public interest.
Are you a landlord or tenant who is having issues in relation to their tenancy? Then talk to one of Efkolaw’s lawyers and explore how they can help you by clicking here.
Are you a landlord who wants a comprehensive tenancy agreement? Then find out more about Efkolaw’s customizable tenancy agreement template here.
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