In a recent judgment dated 28 May 2025 were our office co-handled the case succesfuly on behalf of the tenants, the Rent Control Court of Nicosia dismissed an application for the determination and increase of rent relating to a commercial premises, holding that it lacked jurisdiction to adjudicate the matter. The Court found that the tenancy remained contractual and periodic, and that the tenant had never acquired statutory tenancy status within the meaning of the Rent Control Law (Law 23/1983).
Background of the Case
The application was filed by the owner of a commercial property seeking a fair rent determination under section 8 of the Rent Control Law.
However, the tenancy between the parties was based on an oral periodic agreement, with rent paid monthly and no fixed term. The tenant raised a jurisdictional objection, arguing that the contractual periodic tenancy had never been lawfully terminated, and therefore the tenancy was not subject to the Rent Control regime, rendering the Court without jurisdiction to determine or increase the rent.
The Court’s Reasoning
The Court accepted our arguments on behalf of the tenants that the tenancy remained a contractual month-to-month tenancy, which had not been validly terminated, either by:
- proper written notice under common law, requiring one month’s notice ending on the last day of the rental period, or
- the procedure under section 11(4) of the Rent Control Law in cases of rent arrears.
Accordingly, the contractual tenancy had not converted into a statutory tenancy, and the jurisdictional threshold under section 8 was not met.
The Court relied on established case law, including:
- Nicos Christou Developments Ltd v.Tofinis (1998),
- Sergiou Estates Ltd v. Bentezis (1995),
- Glykys v. Ioannides (1959–60),
confirming that an oral periodic tenancy continues indefinitely unless and until it is properly terminated, and that mere continued occupation does not give rise to statutory protection.
Outcome and Implications
The application was dismissed for lack of jurisdiction, as the tenancy remained purely contractual, and there had been no lawful termination or conversion to statutory status. Costs were awarded in favour of the tenant.
Concluding Remarks
The 28/05/2025 decision reinforces a core principle of Cypriot rent control law:
Statutory tenant status is not acquired automatically; it requires the lawful termination of the existing contractual tenancy and thereafter that the tenant stays within the property after the termination. There are also additional requirements such as that the building was built prior to 2000, was at the time used or available as a rental property and that it falls within specific areas designated under the law.
For landlords, the ruling highlights the importance of issuing timely and valid termination notices before seeking relief under the Rent Control framework. For tenants, it provides reassurance that contractual possession under a continuing periodic agreement remains protected from rent control proceedings unless the statutory conditions for conversion are met.