Keeping up with the Times: Amendments to the Rent Legislation 

By effect of the 18th June, 2024 the Maltese Parliament has amended, for the first time the Private Residential Leases Act, the landmark law regulating the letting of residential property in Malta which had been introduced in 2020. With over 56,720 registered rent contracts, this sector remains one of Malta’s most prominent, and the amendments are intended to address practical issues that have cropped up during the three years that this law has been in place.

The following are some of the most important amendments introduced by this new law:

• Registration: the period for landlords to register the contract with the Housing Authority has been increased from 10 days to 30 days from the beginning of the lease. The registration process shall be completed exclusively online, and the lessor will be requested to specify the number of residents that shall be residing in the property;

 

• Termination upon Expiration by the Tenant: Upon the expiration of the agreed duration of the lease, the tenant may decide to terminate the lease if he gives notice to the landlord at least 1 month before said expiration. Such notification is to be made by means of a registered letter. Otherwise this is not effective;

 

• Changes to the Inventory: The Inventory which is to be attached to the Lease Agreement may take the form of photos. Previously the law did not specify that the inventory may be in the form of photos.

 

• Express Renewal of the Lease: Upon the expiration of the lease, instead of having their agreement renewed automatically by law, the landlord and the tenant may choose to renew their agreement by entering into a new written contract, which must be the same as the original one saving a different period of duration (which shall not be less than 1 year), and any agreed increase in rent (which shall not exceed 5%);

 

• Substitution or Addition of a Tenant: The landlord and the tenant may agree to enter into a substitution or an addition agreement whereby the tenant is replaced by another tenant, or a new tenant is added to the lease. In either case, the new tenant shall enter into the lease for the remaining period and under the same terms and conditions. There is no need for a new agreement;

 

• Mutual Termination or Abandonment: If the landlord and the tenant agree to mutually terminate the lease, or the tenant abandons the rented property without notice, the landlord may register a new lease on the same property even if the period of the previous lease is still running;

 

• Increase in Rent: There may be no increase in rent during the first year of the lease;

 

• Increased powers of the Housing Authority: The new law allows the Housing Authority to impose harsher penalties and introduces new offences, such as where the landlord allows a number of occupants in the property which exceeds that declared when registering the lease;

 

• Increased powers of the Adjudicating Panel: The Adjudicating Panel for private residential leases is now competent to hear new disputes, such as those relating to arrears in rent and utility bills, and to the ordinary maintenance of the common parts of the condominium.

 

Through these amendments the legislator aims to strike a better balance between the rights of the lessor and those of the lessee. It also aims to address practical issues which cropped up following the enactment of the original legislation. It remans to be seen whether these amendments will be sufficient to address such issues in an economic sector which is continously evolving.