E Pluribus Unum - Out of Many, One

Tenants who do not comply with the terms of the tenancy agreement, including the absence of monthly rent, cannot be forcibly evicted by their landlord. The same applies to tenants who, beyond the agreed duration, remain in the occupancy of their building. The new rent provisions, which aim to bring stability to the sector, include action measures, mandatory registration of all private rental properties, and minimum and maximum rental times for long and short rental sheets. Those who want to move to Malta, renting a property on arrival is the best option for the best prices. However, under the Citizenship by Investment Scheme, you can also rent a property and obtain citizenship according to the conditions imposed by the government. The minimum value of the rental contract under this programme is 16,000 euros per year. Under Maltese law, a lease agreement can be signed between two parties with the legal capacity to do so. It is forbidden to enter into a lease in the following situations: Registration: A lessor is required to register any private tenancy agreement with its tenants. These contracts must be registered with the housing authority within 10 days of the start or renewal date. In addition, there appears to be a gap with respect to clauses to regulate expenses that may relate to invoices from Internet/TV service providers and other similar costs. Clauses that do not reflect the actual consumption of electricity and water bills or that do not regulate rent, deposit, insurance and common sharing contributions are prohibited by law. So how can we regulate these expenditures? Are the parties free to enter into separate private agreements to regulate them? Once again, legislative changes will be made to allow tenants and landlords to be informed of these situations.

Renewal of leases is not accompanied by a fee if the lease stipulates that the lease is automatically renewed each year. However, for leases that are renewed in the event of termination, they must be re-signed and the annual fee applies to 5 euros. Leases: the new law stipulates that the duration of the tenancy agreement and the amount of rent per room and common space must be fixed and fixed in writing. The same goes for the rent and deposit paid by the tenant. If the landlord agrees with the tenant that his room is 310 euros per month, this amount and the method of payment are also registered. The rent can only be increased if the tenancy agreement is expressly provided and, if so, it can only be increased once a year. The law is also harsh for owners who have made an inventory of contents such as appliances and furniture condition. If any of these elements of the agreement are not established, the contract is null and void. A common clause in our standard contracts also allows the non-resident tenant to terminate the lease if he must leave Malta with reasonable notice, which is generally limited to “violent swearing” cases. Early termination by one of the parties is always possible, even in the event of a serious breach of the express or implied terms of the lease, and the parties are free to negotiate additional reasons for early termination.

The Maltese housing authority is the most important institution to deal with all rent issues. In 2018, the Authority has even enacted a new law that includes several amendments to the Housing Act, which provides for leases. Another concern that could be pointed out is that it is an end to a non-renewable LPRL. The law provides that in the absence of notification from the lessor to the lessor (at least three (3) months before the termination date, the LPRL will be extended by a period of twelve (12) months. This requirement is part of the scope of a non-renewable contract, in which non-compliance with the termination would lead to an extension to which both parties have not consented.


Comments are closed.