Understanding Malta’s New Rental Regulations: Essential Information for Tenants and Landlords
Starting January 1, 2020, Malta introduced updated rental regulations designed to bring greater stability to the residential rental market. These changes set out clear guidelines for rental contract durations, registration processes, and rights and responsibilities for both landlords and tenants.
Key Aspects of Malta’s Rental Regulations
The revised regulations primarily target private residential leases for properties rented to individuals studying or working in Malta. Under these laws, landlords are now required to register rental properties with the Housing Authority and adhere to specific terms in lease contracts. These new rules aim to ensure a fair and transparent rental process for both parties involved.
Covered Rental Agreements
The regulations apply to the following agreements:
- Residential lease agreements signed or renewed on or after January 1, 2020.
- Residential rental agreements established after June 1, 1995, that are still active as of January 1, 2021.
Excluded Rental Agreements
Certain types of rental agreements fall outside the scope of these regulations, such as:
- Rentals directly arranged with the Maltese government or seasonal holiday leases for tourists.
- Rentals designated as second homes or holiday properties.
- Residential rental agreements signed before June 1, 1995.
Important Rental Regulations and Requirements
Below are some critical regulations introduced with the rental reform:
Registration of Rental Contracts
Landlords must register rental agreements within ten days of signing. If a landlord fails to register, tenants are entitled to notify the Housing Authority and ensure the contract is recorded. Non-compliance by landlords can result in penalties.
Termination of Rental Contracts
Under the new laws, neither landlords nor tenants may terminate a contract prematurely without due process. To end the lease, landlords must provide tenants with three months’ written notice via registered mail before the lease expires.
Tenants, depending on their lease duration, are also required to give prior notice if they wish to terminate the agreement:
- 12-month lease: Tenants can terminate with one month’s notice after residing for at least six months.
- 24-month lease: Requires two months’ notice after a minimum of nine months.
- 36-month lease or longer: Three months’ notice is required after one year of residence.
If neither party provides notice, the lease renews automatically for 12 months. This notice requirement may be waived if either party fails to meet their contractual obligations, in which case the Housing Authority can step in.
For short-term leases, the contract ends on the agreed date with no notice requirement.
Rent, Utilities, and Rate Increases
New rules also regulate rent and utilities. The agreed rental amount, as well as details of what’s included in the rental space and any shared areas, must be clearly stated in the contract. Annual rent increases are limited to a maximum of 5% and may only occur once per year.
Unless otherwise stated, utility costs are separate from the rent. Tenants may pay utilities directly to the service provider (ARMS) or on a pro-rata basis through the landlord. Additionally, tenants may contact utility providers without needing landlord permission.
Property Inventory
Landlords must provide a detailed inventory listing appliances, furnishings, and their condition. If this inventory is not provided, the rental contract becomes void. Tenants are encouraged to review and confirm the inventory list with the landlord to avoid disputes.
How to Register a Rental Agreement
Registering a residential lease is simple and can be done online through the Housing Authority’s website. Tenants or landlords needing utility services can apply directly with ARMS, the utility company.
For further assistance with understanding or complying with Malta’s rental regulations, connect with Belair Property. Our experienced team can help ensure that both tenants and landlords have a smooth and compliant rental experience. Reach out to us for support tailored to your needs.
