0% increase in rents until April, 2023

Rental increases are evidently an issue that greatly concern many Landlords and Tenants, who have probably been affected by the pandemic. In light of this, the Council of Ministers, within the framework defined by section 8(4a) of the Rent Control Law of 1983, proceeded to the issuance of a new administrative act under reference number Κ.Δ.Π. 145/2021, which set the maximum rate of rent increase at 0% for the period 22nd of April, 2021 until the 21st of April, 2023 (hereinafter referred to as the “Regulation”).

In order to clarify the new status quo, we underline the following:

  • This Regulation governs the “statutory” tenancies only, which automatically fall under the protection of the Rent Control Law of 1983, and not the “contractual” tenancies which are regulated under the provisions of the Tenancy Agreement between the Counterparties and, thus, under the Contract Law Cap. 149.

To be noted that, if such a Tenancy Agreement does not exist at all, then the Landlord has the right to demand any increase he wishes, as the Contract Law Cap. 149 does not provide for any limits.

  • This Regulation is inserted as an exception to the rule of rental increase every two (2) years up to 14% (section 8(4a) of the Rent Control Law of 1983). As a result, the Statutory Tenant, who is covered by the Rent Control Law of 1983, is given the opportunity to refuse any increase in the payable rent that the Landlord might require.
  • In the case of “statutory” tenancies where, according to the said exception, the Landlord is not entitled to demand any increase in the rent from the Tenant, the former still has the right to file an Application with the Rent Control Court if the rent paid by the Tenant is significantly lower than the market rental (sections 8(4a,b) and 8(5) of the Rent Control Law of 1983).

The same, of course, applies from the Tenant’s side, in case there is a belief that the rent is more than the market rental, therefore the Tenant is entitled to ask for a reduction in rent through the judicial route. In this case, the Tenant will need to proceed with an appraisal by an independent Evaluator and submit the claim to the Rent Control Court.

As a result of the economic crisis of 2013, the Council of Ministers set the maximum rental increase rate at 0% for the periods 2013 – 2015, 2015 – 2017, 2017 – 2019, 2019 – 2021 where (the increase rate at 0%) continues to this day, due to the financial difficulties caused by the pandemic.

The Government, in fact, with multiple measures is indirectly trying to protect a portion of Tenants who cannot afford excessive rents.

For any clarifications in relation to your Tenancy Agreements, please contact us via email at info@gclawfirm.eu or via telephone (00357) 25 – 361333.

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