# Rent reductions



## bencooper (Mar 20, 2013)

For those renting property, I have been advised that all commercial and residential property rents will be reduced by law starting Nov 1st. Residential 1eu to 300eu pcm , 15% and rent of 300eu plus will be 20% reduction with 120eu the maximum reduction. These reductions valid for rental agreements signed before Sept 1 2012.


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## Guest (Oct 18, 2013)

bencooper said:


> For those renting property, I have been advised that all commercial and residential property rents will be reduced by law starting Nov 1st. Residential 1eu to 300eu pcm , 15% and rent of 300eu plus will be 20% reduction with 120eu the maximum reduction. These reductions valid for rental agreements signed before Sept 1 2012.


Found it

http://cyprus-mail.com/2013/10/17/new-law-enshrines-rent-reductions/


Anders


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## PeteandSylv (Sep 24, 2008)

I do have sympathy with the small scale private landlords who will be hit by this. In many cases they need the rents to meet their mortgage payments viewing the long term property value as the investment. We know of one case like this where a rental was gradually reduced from €450 per month to €250 each time the tenant gave notice in order to keep them. This was with an informal agreement so no documentation existed. He was just a decent landlord.

I am against these type of rent controls just as I was in the UK where following their application the rental market shrank rapidly causing major problems for those that cannot afford or wish to buy.

Pete


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## bencooper (Mar 20, 2013)

The President (Anastasiades) has expressed his intention to disapprove the rent reduction amendment. A final decision is expected- watch this space.


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## Guest (Oct 31, 2013)

bencooper said:


> The President (Anastasiades) has expressed his intention to disapprove the rent reduction amendment. A final decision is expected- watch this space.


If it stands, there can be a backlash in 12 months because the law is for one year only.

As Pete say, I also feel sorry for the small private owners.

And many will just get 120 euro extra in the pocket, without any need for it

Anders


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## Guest (Oct 31, 2013)

Here is the article about it. The interesting reading is really the comments



President sends back rent slashing law | Cyprus Mail


Anders


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## mikehump3 (Aug 28, 2012)

I am a small landlord (property not stature) owning a flat on the Limassol seafront close to the new 'Twin Towers'. My tenant stopped paying the rent in March because she was out of work. Having already reduced the rent over a 2 year period from a sum that was giving me a 5% return on my investment to a sum that would, if paid, give me a return of less than 4% pa of my investment, does this new regulation mean that I must now pay my tenant? (Joke)

The law in Cyprus is similar to that in UK. If the property is my sole residence I can give my tenant 30 days notice. Sorry tenant but in January you are going to be given notice to quit!!!

Mike


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## PeteandSylv (Sep 24, 2008)

This was the point I made earlier.

You have my sympathy as does your tenant.

Pete


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## Tanager (Mar 14, 2009)

I agree with Pete and Anders. Governement shouldn't decide about rental fees. Comparing to other European countries rental prices are relatively lower than ie. in Ireland or in the UK. I just saw couple of places in Peyia that you can rent ie. 1 bedroom apartment for EUR 170-200/mth. (I agree salaries are lower here too) But this is still very cheap. How low they can go??


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## mikehump3 (Aug 28, 2012)

Now that the plans to force a decrease in rents has been put on hold or forgotton about the pressure is off. However, I would consider the pre-recession rents to be quite high in relation to property valuation.

Mike


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## PeteandSylv (Sep 24, 2008)

Where pre-recession rents are high it is unfortunate if a long term contract is involved. A wise landlord would be a willing party to renegotiation but I understand many are not particularly in the commercial sector. This is why so many companies move to new premises quite close to their old ones and how the landlords will learn the economic truth that 80%, say, of something is better than 0% of nothing.

This is true market forces in operation and I believe that government time is better spent not getting a country into recession than creating more internal inflexible and damaging financial regulations.

Pete


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## Guest (Nov 16, 2013)

PeteandSylv said:


> Where pre-recession rents are high it is unfortunate if a long term contract is involved. A wise landlord would be a willing party to renegotiation but I understand many are not particularly in the commercial sector. This is why so many companies move to new premises quite close to their old ones and how the landlords will learn the economic truth that 80%, say, of something is better than 0% of nothing.
> 
> This is true market forces in operation and I believe that government time is better spent not getting a country into recession than creating more internal inflexible and damaging financial regulations.
> 
> Pete


This belief is spread in many segments of Cyprus business. Look at many restaurants that when customers are few they raise prices. 

Anders


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## PeteandSylv (Sep 24, 2008)

Vegaanders said:


> This belief is spread in many segments of Cyprus business. Look at many restaurants that when customers are few they raise prices.
> 
> Anders


I have never experienced this and in most places we eat, throughout Paphos and not just locally, are paying the same as 4 years ago. I spoke to Debbie at The Vineyard who said they can't change their prices on the menu without going through another registration process with the CTB.

Pete


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## Guest (Nov 17, 2013)

PeteandSylv said:


> I have never experienced this and in most places we eat, throughout Paphos and not just locally, are paying the same as 4 years ago. I spoke to Debbie at The Vineyard who said they can't change their prices on the menu without going through another registration process with the CTB.
> 
> Pete


I can only judge from the menu translations we are doing for the moment. At the same time prices will be adjusted up. I doubt that everyone bother about any registration

Anders


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## PeteandSylv (Sep 24, 2008)

Vegaanders said:


> I can only judge from the menu translations we are doing for the moment. At the same time prices will be adjusted up. I doubt that everyone bother about any registration
> 
> Anders


So some restaurants are making price increases. Food has gone up as has VAT and many other costs. I don't think the implied greed through lack of customers is the reason or should be assumed.

Pete


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## Guest (Nov 17, 2013)

PeteandSylv said:


> So some restaurants are making price increases. Food has gone up as has VAT and many other costs. I don't think the implied greed through lack of customers is the reason or should be assumed.
> 
> Pete


At least it sounds like that when I talk to the owners. But greed? Hardly, I think some of them struggle very hard to survive and hope this is a way.

But this has nothing to do with the topic of this thread so we take the discussion another time


Anders


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