Rent increase for institutional tenants

On 13/04/2023, a decree was passed pursuant to article 8 (4) (a) of the Tenancy Law, which increased rents by up to 6% for the two-year period starting from 22/04/2023 until 21/04/2025.

This specific decision concerns only properties that fall under the Tenancy Law, that is, buildings that were built before 31/12/1999, were offered for rent or were rented before 31/12/1999 and the tenant has become an institutional tenant .

Regarding the above decree, the landlord may increase the rent by up to 6% for the next two years and the tenant is obliged to pay it. 

It should be noted that for properties built after the year 2000 until today, the Contracts Law applies. The owner and the tenant sign a contract and agree on the obligations and rights of each party. Upon the expiration of the contract, the owner can impose any increase he wishes. If they do not reach an agreement on an increase, then the owner can take the dispute to Court, requesting the eviction of the tenant.

When does a tenant become an institution?

1. The property must be in a controlled area as provided for by the Law. However, in essence, the law covers almost all areas both in cities and in the suburbs.
2. The construction of the property must have been completed and completed by 31/12/1999.
3. The property was under rent or offered for rent on and/or before 31/12/99.  (see Fysentzidis 2020)
4. There must be a rental agreement.
5. The first rental agreement must have expired or been terminated and the tenant must still own the property. 

Therefore, property owners who fall under the above provisions with institutional tenants have the right to request from them up to a 6% rent increase for the next two years from 22/4/23 to 21/04/25.

By Christina Christofi Lawyer through Dimitriou & Dimitriou LLP