Andreas Andreou
Over the many years I have worked in the real estate sector, I have seen the Cypriot property market go through all kinds of ups and downs. I have experienced economic cycles, managed complex investments, and worked with a huge range of professionals and organizations. Yet there is one issue that remains unresolved over time, a “thorn” that undermines the trust of property owners and, ultimately, the health of the rental market itself: the problem of inconsistency and bad-faith behavior by certain tenants.
I would add to this the related issue of rent control legislation, which also remains unresolved. I have spoken about it many times and will not elaborate on it today.
Let us be honest: the property market is not a charity. It is a business relationship based on mutual trust. When that trust is betrayed, the consequences are not only financial but also social.
We all know the scenario. A tenant leaves the property “overnight,” before the end of the lease, leaving behind unpaid rent and possibly unpaid utility bills and common expenses. But it does not stop there. The apartment is handed back in a condition resembling a wreck: broken fittings, damaged cupboards, dirty walls, and a complete lack of basic maintenance.
And as if that were not enough, the tenant has the audacity to demand the return of the deposit, denying any responsibility for the damage, a deposit that usually covers only a small portion of the costs of the damage caused.
The property owner is left at a dead end. If they choose to go down the legal route, they become trapped in a judicial labyrinth that can last for years. Legal fees, delays, and the tenant’s possible inability to pay compensation often make the process ineffective. As a result, the property owner is forced to “swallow” the loss.
This situation is unacceptable for a modern economy.
Why would a tenant behave this way? Quite simply, because until now, the market does not “punish” them. There are no consequences. They know they can leave one property and move into another without anyone knowing their history.
This brings me to my proposal: the creation of a Tenant Reliability Register.
And to be clear, I am not referring to a lengthy legal process that would make the tool useless. I am talking about a digital tool for the immediate recording of data.
Such a register should operate as a deterrent factor.
When a tenant knows that their “digital footprint” will follow them and that the next time they try to rent a decent property they will be an “open book” to the owner, the cost of bad-faith behavior becomes prohibitive.
Simply knowing that “I could end up on a blacklist” can discourage someone from being “inconsistent” or behaving like a “jerk.”
How would it work in practice?
The effectiveness lies in the information.
The system could be built around two main pillars:
Condition Report: When an apartment or house is handed over to the tenant and subsequently returned to the owner, the condition of the property would be documented through photographs and a digital signature, creating clear and indisputable evidence.
The system would operate on a subscription basis for property owners, who would have access to a 'Tenant Rating Score'.
There is no need for a judge to determine whether someone returned a property dirty and damaged when there is documented evidence showing its condition before and after the tenancy.
Inconsistency should be recorded immediately.
Naturally, the issue of personal data and GDPR is critical. However, let us not hide behind our fingers.
Just as we have ARTEMIS to assess the creditworthiness of companies and individuals within the banking system, we should also have a tool to assess reliability in rental agreements.
If you are a responsible tenant, you have nothing to fear. If you are not, the market has the right to protect itself.
As a professional who has seen thousands of cases, I know that a lack of consequences leads to properties being withdrawn from the rental market. Owners become afraid to invest in or make their properties available, reducing supply and ultimately leading to an artificial increase in rents for everyone.
Creating a rating system is not about punishment. It is about standards and institutional protection.
The state has a duty to establish the framework, while the Associations of Valuers and Real Estate Agents could take on its management, ensuring impartiality and validity.
It is time to enter the age of data.
Trust should not be a property owner’s blind hope. It should be something that can be demonstrated.
If someone wants to enjoy the benefits of renting a property, they must also accept the responsibilities that come with it.
Our market deserves to be transparent, fair, and, above all, safe.
Let us start the discussion now, before inconsistency becomes the rule rather than the exception, particularly now that the rental sector has become increasingly multicultural.
*Andreas A. Andreou, MRICS, CEO, APS Andreou Property Strategy – Chartered Surveyors
