Malta New Tenancy Reforms 2020

New rent reforms for landlords and tenants.

From the 1st^st January 2020: Malta sees new regulations for rental agreements.

By implementing these new regulations, the government is ensuring more stability in this industry. The new laws not only cover rental agreements, but also regulate the minimum and maximum rental periods as well as notice periods.

Landlords must register rental agreements with the housing authority within 10 days of the start of the tenancy. The contract must be registered online on the website www.rentregistration.gov.mt

Which rental agreements are covered by the new regulations?

• Rental contracts for residential property that were concluded or renewed after the 1st^st January 2020
• Rental contracts for residential property that were concluded after the 1st^st June 1995 and also after the 1st^st January 2021

Which rental agreements are not affected by the new regulations?

• Lease agreements concluded with the government
• Rental agreements for properties that are rented exclusively for tourist purposes
• Rental agreements for properties that are rented out as a second home or as a holiday home
• Rental agreements for properties concluded before the 1st^st June 1995

What obligations do landlords and tenants have?

All contracts mentioned above must be registered, otherwise they lose all legal basis and a fee must be paid.

Contracts for long-term rentals (at least 1 year)

• The tenant is obliged to rent the property for the first 6 months
• After the 6 months have expired, the tenant can withdraw from the contract by sending a registered letter with at least 1 month's notice.
• If the landlord does not intend to extend the rental agreement, the tenant must be informed of this by registered letter three months before the end of the contract.
• If the landlord does not notify the tenant within the specified period, the rental agreement is automatically extended for one year.
• The contract term is one year, but the landlord and tenant can agree on a longer rental agreement.

Contracts with a term of more than 3 years

• The first twelve months (12) are mandatory for the tenant;
• After the prescribed twelve months have expired, the tenant can withdraw from the contract by sending a registered letter to the landlord by giving at least three (3) months' notice;
• If the landlord does not intend to extend the rental agreement, the tenant must be informed of this by registered letter three (3) months before the end of the contract;
• If the landlord does not notify the tenant within the specified period, the rental agreement is automatically extended for one year.

Contracts for short rentals (6 month term)

Short-term rental agreements only apply to the following:

• Foreign temporary workers who have been employed for six months or less;
• Students completing short courses lasting less than six months;
• Foreign tenants who do not seek habitual residence in Malta;
• Maltese tenants who need to rent an ordinary apartment for a short period of less than six months.

The actual contract

• The rental period is six months;
• The first month of rental is obligatory for the tenant;
• After the obligatory month has expired, the tenant can withdraw from the contract, but is obliged to notify the landlord of this at least one week in advance by registered letter;
• The contract cannot be extended.

Shared living space

Rent one shared living space means renting a separate room in an apartment or building with shared amenities such as a kitchen and bathroom.

Explanation of a shared apartment rental agreement

• The rental period is six months;
• The tenant can withdraw from the contract at any time by giving the landlord one week's notice by registered letter;
• The contract cannot be extended

Registration fees

Normal registration fee: 10 €
Regular registration will be free in 2020.

Late registration fee: 120€
The late registration fee applies if registration of the private residential tenancy agreement does not occur within 10 days of the start of the tenancy agreement.

Contract renewal fee: 5€
Rental agreements that are renewed upon termination must be re-registered and a renewal fee of €5 will apply.

There are no fees for renewing leases where the contract specifies that the lease will be renewed every year.

Fines were imposed

Anyone who does not comply with the new law can face fines of between 2,500 and 10,000 euros.

The law can also impose fines of €1,500 and €4,000 on landlords who attempt to block the property's water and electricity supplies or remove furniture, appliances or personal belongings.

The Housing Authority would have the power to issue an enforcement order and a €5,000 fine against a person found guilty of living in a property and not registered under the Act.

For further information visit our St.Paul's Bay office or contact us on 2010 5070

https://www.northernpropertiesmalta.com/status/for-rent/