Long term Rentals Guide

Comprehensive Guide to Renting Long-Term Properties in Limassol and Paphos

Renting long-term properties in Limassol and Paphos, whether residential or commercial, can be a strategic move for both tenants and landlords in Cyprus’s thriving real estate market. This guide offers a detailed overview of renting various property types, including houses, apartments, villas, offices, shops, warehouses, and industrial spaces. It also covers essential aspects such as breakage deposits, tenancy agreements, and utility management, ensuring that both landlords and tenants are well-informed about their rights and responsibilities.

Renting Residential Properties: Houses, Apartments, and Villas

Limassol and Paphos are popular destinations for long-term residential rentals, attracting a diverse range of tenants, from expatriates and professionals to families and retirees. The rental market is robust, offering a variety of options from luxury villas and spacious houses to modern apartments.

Key Considerations for Tenants:

Breakage Deposit: Upon signing a long-term rental agreement, tenants are required to pay a breakage deposit equal to one month's rent. This deposit is held by the landlord throughout the tenancy and is returned at the end of the lease, provided the property is in the same condition as when the tenancy began. The breakage deposit covers any potential damages, cleaning fees, or unpaid bills. It’s important to note that this deposit cannot be used as a rental payment during the final month of the tenancy.
Tenancy Agreement: A legally binding tenancy agreement is crucial for both parties. This document outlines the rights and obligations of both the tenant and the landlord under Cyprus Accommodation Law. The agreement includes payment schedules, maintenance responsibilities, and conditions for the return of the breakage deposit. It is advisable for tenants to thoroughly understand the terms to avoid any legal complications.
Utility Management: Domestic electricity in Cyprus operates at 240 V AC, 50Hz, with British-type 13 amp 3 flat pin plugs. Tenants must register with the Electricity Authority of Cyprus (EAC) to have electricity connected. In some cases, the landlord may handle this registration and bill the tenant based on meter usage. Water bills are typically covered by the landlord, but this cost might be forwarded to the tenant depending on the agreement.
Internet and Communication Services: Cyprus offers various providers for telephone, internet, and digital TV services, including Cyta, PrimeTel, Cablenet, and Epic. Tenants should arrange for these services upon moving in, ensuring they have access to reliable communication and entertainment options.

Renting Commercial Properties: Offices, Shops, Warehouses, and Industrial Spaces

The commercial real estate market in Limassol and Paphos is highly active, with businesses seeking prime locations to establish their operations. Whether you’re renting an office, shop, warehouse, or industrial space, it’s essential to understand the specific needs of commercial tenants and landlords.

Key Considerations for Tenants:

Breakage Deposit: Similar to residential rentals, commercial tenants are required to pay a breakage deposit, usually equivalent to one month’s rent. This deposit is held by the landlord and is returned at the end of the lease if the property is in the agreed condition. The deposit covers any damage to the premises, cleaning fees, or unpaid utility bills.
Commercial Lease Agreements: Commercial leases are more complex and typically longer than residential leases. These agreements should detail the lease duration, permitted uses, maintenance responsibilities, and payment schedules. Clear communication about who is responsible for paying business rates and other local taxes is crucial.
Utility and Maintenance Responsibilities: Utility bills for commercial properties may be managed directly by the tenant or remain in the landlord’s name, with the tenant reimbursing the costs. Maintenance and repairs are often a significant part of the lease agreement, particularly for warehouses and industrial spaces, where regular upkeep is essential.
Location and Accessibility: The success of a commercial rental often depends on its location and accessibility. Offices in business districts, shops in high-traffic areas, and warehouses near major transportation routes are highly sought after. These factors should be highlighted in the marketing of the property to attract the right tenants.

Landlord Responsibilities and Tenant Rights

Both landlords and tenants have specific responsibilities that must be adhered to, ensuring a smooth and legally compliant rental process.

Landlord Responsibilities:

Property Maintenance: Ensure the property is well-maintained and complies with local safety regulations. Promptly address any maintenance issues reported by the tenant.
Breakage Deposit Management: Hold the breakage deposit securely and return it promptly after confirming the property is in satisfactory condition and all bills are settled.
Utility and Tax Payments: Clearly outline in the tenancy agreement who is responsible for utility payments and municipal taxes. It’s often recommended to include these in the rent to avoid disputes.

Tenant Rights and Responsibilities:

Timely Payments: Pay rent and any additional charges (such as utilities and communal fees) on time, as agreed in the tenancy agreement.
Property Care: Maintain the property in good condition and report any issues to the landlord promptly. Failure to do so could result in the loss of the breakage deposit.
Utility Bill Settlement: Ensure that all utility bills are paid before vacating the property to avoid legal complications.

Final Thoughts

Renting property in Limassol and Paphos, whether residential or commercial, involves a clear understanding of legal obligations and the responsibilities of both parties. With the proper knowledge and preparation, landlords and tenants can ensure a successful and mutually beneficial tenancy.