RENTED PROPERTY

Hotel rentals to be extended

hotel-rentals-to-be-extended

Development Minister Adonis Georgiadis tabled an amendment in Parliament on Wednesday providing for the extension of hotel and room rental agreements by two years, forming part of the bill with the new measures to support the economy.

The extension concerns the leases active when the Government Gazette publishes the new law, and has a ceiling on rental rate increases. This regulation not only concerns cases where the owner is an individual or a private company, but also where the owner is a state enterprise, a local authority or the state itself.

The adjustment of the rent per year of extension and until its expiry will amount to 75% of the shift in the consumer price index, and in no way can it exceed a 4% increase. There is also a provision in case of deflation, which the economy is currently experiencing, with the minimum increase in rent amounting to 1%, unless of course there is a special term in the rental contract regarding the way the rate will be shaped should there be an extension for any reason.

For tenants to benefit from this forced extension, as in the case of other commercial rentals, they must have no expired dues to their landlords – any debts to the state do not affect their situation.