1. Having a comprehensive tenancy agreement
The rules that govern a tenancy should always be always outlined in the tenancy agreement between the landlord and the tenant. Maintaining a good tenancy agreement ensures that (a) the tenancy is valid and (b) that the landlord can protect its interests, and (c) that there is no misunderstanding regarding the terms that the tenant should abide by (e.g. whether they are liable for further fees such as communal costs or utilities). Do you need a Cyprus Tenancy Agreement? For Efkolaw’s Tenancy Agreement Template click here.
2. Ensuring that there are two witnesses when signing a tenancy agreement that is longer than 12 months
Not many people know this, but in accordance with Cap 149, Section 77(1) (the Contract Law), tenancy agreements that are longer than 12 months need two witnesses to witness the signing of the tenancy agreement and sign themselves in order for it to be valid. An invalid tenancy agreement does not mean that the tenant doesn’t have rights to the property, but it does mean that the agreement as a whole is invalid and that the tenancy is considered a statutory tenancy, meaning that it only runs from month to month or year to year (based on how payment is made) until it is terminated legally with notice, or for the full term of the agreement (in accordance with the case of Takis Georghiades and Others v. Alexandra Lambi (1976) JSC 1332). With the agreement being invalid, this also means that the main terms of the agreement are also not enforceable, e.g. automatic renewal of the tenancy. It should also be noted that if either of the witnesses is not present during the signing, and for example, one signs later without viewing the signature of both parties, the tenancy agreement could be considered invalid according to the case of Ιωάννη Ιωάννου κ.α. ν. Cockatoos Bowling and Entertainment Center Ltd κ.α., Αρ. Αγωγής 2835/08, 21/10/2013 (this case could arguably also mean that any tenancy agreement signed through modern e-signing applications like DocuSign could render the agreement invalid).
3. Terms of the tenancy
A lot of attention also needs to be given to the terms that are included in the tenancy agreement. There are many things to consider inclusive of the deposit, repair requirements, pet allowance, rent amount and even whether a guarantor is required.
4. Stamping the agreement
The Stamp Duty Law (19/1963) requires the payment of a one-off fee (usually between €0 to €3) as a stamp duty payment to the Cyprus Tax Department for specific types of agreements, which includes tenancy agreements. This is usually the responsibility of the tenant, however, there are some situations in which the landlord would consider paying this. The main reason that a landlord would want the stamp duty to be paid is that the stamp is necessary for the tenancy agreement to be admissible in court. It should be noted that the stamp duty can also be paid much later than the time of signature, however, fines may be applicable if it is later than 30 days (1x the stamp duty fee) or 6 months (2x the stamp duty fee).
5. Taking pictures of the property
An unfortunate fact is that properties and furniture are sometimes damaged during the course of tenancies. It is normal for some reasonable wear and tear to exist, however, there are negligent or reckless tenants who could cause significant damage. To ensure that the landlord has the right to either (a) keep a part of the deposit, or (b) sue for damages, it is best practice for the landlord to take down a detailed inventory list of the property and its furniture, taking pictures, and noting the condition of everything.
6. Taking down all the relevant information of the tenants
When taking on a tenant, it is always important for a landlord to know who he/she is dealing with. Asking for the tenants’ passport and ID ensures that the landlord has the details of the specific person they are renting to, and obtaining a second address could be additionally beneficial if the relationship were to ever turn sour, ending up in court. In addition, asking for a reference or the contact details of a previous landlord could help to paint a picture of the tenant, as this could reveal whether there were any previous issues in tenancies.
Are you a landlord in Cyprus who needs a comprehensive tenancy agreement? Then use Efkolaw’s customisable Cyprus Tenancy Agreement Template by clicking here.
Please note that Efkolaw is not a law firm and it does not offer any legal advice. Any content hosted on our site is meant to be informative and does not constitute or substitute advice from a qualified legal professional.