Rent freeze law question

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bvasili
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Joined: 21 Jul 2018 01:58

Rent freeze law question

Post by bvasili » 21 Jul 2018 04:01

Hi everyone,
Im new to the forum.

I have a shop in Nicosia which I have been renting to someone for the last 4 1/2 years. I have a tenancy agreement with them that clearly lays out the rent and rent increases.

A rent increase was supposed to come into effect in January of 2018 but they will not pay it saying that there is a rent freeze law in Cyprus until April of next year.

My question is, does the contract I have with the tenant take precedence over the rent freeze law?

I am pretty sure it does.

A word of warning to everyone, if you have a property and want to rent it out then be aware that a contract is virtually meaningless in Cyprus. It only works if your tenant is willing to honour it otherwise its lawyers and years. I have been through it and in the end had to pay them to leave. I haven't made a penny in 40 years overall.

Anyway, any clarification on the rent freeze law would be appreciated.



Pantheman
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Re: Rent freeze law question

Post by Pantheman » 21 Jul 2018 09:40

Hello,

The rent freeze law applies only to properties in the rent control areas of Cyprus.

You need to check this first. If your property comes under the rent control act then, not only will he claim a rent freeze, but he becomes a statutory tenant and the rent is governed by the council of ministers not the free market.

You would also have some trouble getting him out without resorting to the courts. If he is not paying or breaching his conditions then you have a case of removal.

What area in Nicosia is your shop in???


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Pantheman
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Re: Rent freeze law question

Post by Pantheman » 21 Jul 2018 09:50

These are the areas covered by the rent control act.

Municipalities/ villages of Nicosia District:
Aglandjia, Engomi, Ayios Dometios, Strovolos, Lakatamia, Latsia, Kakopetria, Galata, Evrychou.

And that:

immovable property» means a house or shop rented which is in a controlled area and which was completed on or before 31.12.1999,

If your shop falls within these areas you may have problems.

And the relevant law:

The Rent Control Law 23/1983

Good luck.


For all your property needs, we offer Trust, Integrity, Honesty.
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Nigel Howarth
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Re: Rent freeze law question

Post by Nigel Howarth » 21 Jul 2018 12:17

Thanks Pan

Correct me if I'm wrong but I think the Rent Control Law only applies to Cypriot citizens?

Regards


Nigel Howarth
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Pantheman
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Re: Rent freeze law question

Post by Pantheman » 21 Jul 2018 12:54

Nigel Howarth wrote:
21 Jul 2018 12:17
Thanks Pan

Correct me if I'm wrong but I think the Rent Control Law only applies to Cypriot citizens?

Regards
Nigel,

I haven't seen anything that states this and in any case, I think it would be considered as a racist/discriminatory act if it were.

The act was pass primarily for the housing of the refugees of the 1074 Turkish invasion, but continues to this date.

I think he would be advised to seek proper legal advice, also he should have been more aware of the ct when he let the property initially. If a lawyer drew up the contract he should have advised him accordingly.


For all your property needs, we offer Trust, Integrity, Honesty.
FSB Properties Ltd
Registered and Licensed Real Estate Company Co. Reg. No. 795, Lic. No. 250/E
http://www.fsbproperties.com

Nigel Howarth
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Re: Rent freeze law question

Post by Nigel Howarth » 21 Jul 2018 13:47

Thanks Pan

You're correct - after a bit of digging - "the tenant must be an EU citizen or a company controlled by EU citizens."

Regards,


Nigel Howarth
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Contact Nigel Howarth
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bvasili
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Joined: 21 Jul 2018 01:58

Re: Rent freeze law question

Post by bvasili » 24 Jul 2018 00:34

My shop is in Themistokli Dervi Street, near Arab Bank and a big starrbpucks. Does anyone know if this is in a rent controlled area? The building was built in the 70's.

Does anyone know if the rent freeze law applies to tenants that have contracts?



Nigel Howarth
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Re: Rent freeze law question

Post by Nigel Howarth » 24 Jul 2018 12:13

Hi bvasili

Themistokli Dervi Avenue is in the Nicosia Municipality - I suggest you call/visit their office to confirm whether or not your property is in a rent controlled area.

If it is in a rent controlled area there's a rent freeze until 21.4.2019.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
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