Landlord and Tenant Law
Landlord and tenant law (or rental law) is a part of private civil law that deals with the rights and duties of landlords and tenants. It includes elements of both land law and contract law.
Types of rental relations
The relationship between landlord and tenant is defined by the existence of either:
- A leasehold estate: This is governed by a leasehold contract and grants a long term (but temporary) “ownership” or “right” upon the rented property (i.e. it is a proprietary/property right) in which the lessee (tenant) substitutes the landlord’s rights for a period of time and holds real property rights by possessing a title upon the land, given to him/her by the lessor (landlord). In Cyprus a lease can be registered with the Lands and Surveys Department and which issues a separate leasehold title to the lessee. Leasehold estates usually involve commercial, state, municipal or church properties and, by Cyprus law, the leasehold period must exceed 15 years.
- A contractual obligation: This involves personal obligation between the parties that are governed by a rental contract, which is a chose in action (i.e. it includes the right to sue for breach of contract). The tenant has no proprietary right upon the land but only has exclusive possession for a period of time (the term) for an agreed consideration (the payable rent).
Which one of the two types of tenancy exists, is a matter that is governed by the various terns included in the lease or rental agreement. For a formation of leasehold in Cyprus, the most important terms that should be included in the contract are that the duration of the tenancy must be over 15 years and that the parties agree that the contract may be registered with the Lands and Surveys Department as a leasehold. In most cases in Cyprus a rental agreement is only a contractual obligation rather than a proprietary right.
Obligations and Duties
Traditionally the obligation of the landlord was to grant the estate to the tenant. However, modern landlord and tenant law includes a number of other rights and duties held by both landlords and tenants respectively
The duties of the Landlord in modern tenancies include the following:
- Duty to deliver possession: This duty arises at the very beginning of a lease. This covers cases where the Landlord cannot deliver possession owing to rights of other parties e.g. pervious tenants, this burden being placing upon the landlord because the landlord has more rights to pursue legal remedies against wrongful holdovers (previous tenants that will not deliver possession of the property) or trespassers, e.g. persons with bare licenses, invitees, relatives or squatters.
- Covenant of peaceful and quiet enjoyment: This is implied in all leases and means that the landlord may not interfere in any way with the right of the tenant to possess the premises or the land. This is subject to qualifications e.g. the landlord’s forcible entry without notice during an emergency (doctrine of imminent peril). However the mere necessity for quick action does not constitute an emergency or where the situation should reasonably have been anticipated, or where the person whose action needed should have been prepared to meet it, or where the peril was brought about by the landlord’s negligence.
- Covenant of habitability and covenant to repair: Where the subject matter of the rental lease is premises to be used for habitation or business activities, it is implied that a landlord must provide them free of such defects that may be harmful to the health or safety of the occupants or that may render them inhabitable. If such defects exist then the landlord is required to repair damage to the premises within a reasonable time. In Cyprus, if the landlord refuses to repair the premises within a reasonable time, the tenant may terminate the lease for breach of contract and deliver possession to the landlord. If the landlord refuses to accept termination of the contract and sues for arrears in rent, the tenant may adduce evidence of constructive eviction i.e. that he/she was unable to occupy the premises any longer due to the landlord’s breach of the implied covenant of habitability. Alternatively the tenant may carry out the necessary repairs (for a reasonable and going-rate cost) and then sue for recovery.
The duties of the Tenant in modern tenancies include the following:
- Duty to preserve the premises: A tenant is usually required to be responsible for all his/her intentional or negligent damages or actions, other than naturally occurring deterioration, and this connects to the tenant’s duty to refrain from committing voluntary (criminal damage), permissive (failure to maintain) or ameliorative (unauthorized changes) waste. For this reason there is usually a limited requirement for maintenance or repairs by the tenants or at least a requirement for prompt and proper notification of the landlord for any defects. Usually tenants give a security deposit to the landlord which is only returned to them if the premises are returned to the landlord in the same condition that they had been received. If a tenant causes voluntary damage or unauthorized changes to the premises, a landlord may evict* the tenant or sue for monetary damages as provided by contract law.
- Duty to pay rent: A tenant is required to pay rent and any arrears may make him/her liable to eviction* and an order for payment of the arrears. Historically, the tenant’s duty for payment of rent was considered as independent from the landlord’s duties. Today the tenant’s duty to pay rent is considered to be dependent on full performance of the landlord’s duty to repair or keep the premises habitable.
- Duty to operate: In some commercial leases, the tenant’s duty to operate the premises may be a term of the lease. This would mean that leaving the rented property vacant without operating the business for which the lease was made would render the contract voidable and subject to termination. This is especially important where the amount of payable rent is dependent upon the “good will” or “turnover” of the business or the operation of the premises as a business.
- Duty of Attornment: In some commercial leases, the tenant has a duty under the lease to provide upon request an acknowledgement of attornment i.e. to verify the existence of the relationship of landlord and tenant. This is usually required by a creditor (e.g. a bank) or potential buyer of the property from the landlord, in order to establish possible encumbrances or income from the property. Normally the tenant is also required to declare the existence of any outstanding disputes with the landlord.
- Duty not to use the premises for illegal purposes or to cause nuisance: A tenant is required to carry out legal activities in the premises and a conviction for any illegal act may make him/her liable to eviction and/or damages. The same applies in cases of nuisance. Eviction must follow either a decision on a lawsuit for private nuisance or a criminal conviction for public nuisance or use of the premises for illegal activities.
Rent Controlled Tenancies
In some jurisdictions, including Cyprus, many tenancies are considered as rent-controlled tenancies and as long as the tenant pays his/her rent they are secured without any time limit in their possession of the property.
In Cyprus all private or business premises that are within the limits of the main municipalities and other tourist areas are rent-controlled areas, and as such, rental leases of houses built before the year 2000 have no expiry date whilst the rents are controlled and can be determined by the rental tribunal. The competent court for landlord and tenant matters in rent-controlled tenancies is the Rent Control Tribunal. All other tenancies fall under the jurisdiction of the District Courts under contract law.
For rent-controlled tenancies in Cyprus, a tenant can only be evicted:
- For arrears in rent for more than 21 days or regular delay in payment of rent (under conditions).
- For causing nuisance or constant annoyance to the neighbors or if the premises are used or were allowed to be used for illegal or immoral purposes.
- When to the court’s opinion the condition of the premises have been deteriorated due to the intentional destructive acts or the recklessness of the tenant or for causing (or allowing to be caused) substantial damage to the premises, unless the tenant restores the premises within two months of being served the application for eviction.
- When the tenant sublets the premises without permission and the court is of the opinion that his/her eviction is reasonable under the circumstances.
- When the tenant sublets the premises or accepts roommates and makes such direct or indirect profit which is disproportional to the payable rent that the court is of the opinion that his/her eviction is reasonable under the circumstances.
- If the property is needed by the owner or his immediate family for personal use (under certain conditions).
- If the property is needed by the owner or his immediate family for their own business purposes (under certain conditions).
- If the property is reasonably claimed by the landlord (under certain conditions):
- For demolition of the premises or the building upon which the premises are situated, provided that this does not constitute misuse.
- For demolition and reconstruction of the premises or the building upon which the premises are situated.
- For performing fundamental changes to the premises or the building upon which the premises are situated.
- For construction work aiming to conserve “listed” buildings.
- If the premises must be evacuated for a development project as required by law.
- Under expropriation and requisition of the premises by the state.
- If the premises are reasonably needed to be used for the execution of the duties and responsibilities of a local authority and the court is of the opinion that this is in the public interest.
- If the tenant has given notice to leave the premises and the landlord has agreed to re-rent the premises or sell the premises or has taken other steps that the court is of the opinion that the landlord would suffer serious loss if he/she did not repossess the premises.
- If the premises were rented to a government employee and the tenant is no longer such an employee or does not satisfy certain criteria.
The Cypriot Rent Control Law has many provisions that deal with matters of tenancy including, notice periods, possession and eviction, rent-controlled areas, implied terms, maintenance of the premises, determination of just rent, etc.
Our Services
Our services include all landlord and tenant matters, claims and disputes such as:
- Legal Opinions.
- Drafting rental contracts and agreements.
- Eviction.
- Breach of rental covenants.
- Determination of rent.
- Wrongful holdovers and trespassing.
- Execution of decisions, e.g. collection of rents and writs of possession.
- Appeals etc.
The common law remedy of “forfeiture” (repossession) or “self-help’ by taking active steps to remove the tenant from the property without initiating legal action to reclaim possession are no longer available in most jurisdictions and may be considered as being criminal unlawful entry in the premises. Eviction usually requires initiation of a lawsuit, requiring an initial notice to a tenant, followed by court proceedings where the tenant may contest the eviction or even file a counter-claim. If the landlord wins the lawsuit then the court shall issue a writ of possession which may be executed by a bailiff who may potentially forcibly remove the tenant (and his property) from the premises.