From 1 January 2020, the rental reform in Malta will take place. The rental rules will drastically change in order to get closer to European standards, to better regulate the rental market in Malta and to better protect the tenant and the owner. The reform concerns more long-term rentals, but also affects the shortest stays, that is to say all “short let” of 6 months maximum. So, obviously with long rentals in Malta the house owners can really earn a lot. You better know more about it before going for it.
What does this reform consist of? What changes are expected? What to expect?
For all the others and those who don’t have the time, Oh My Up investigated the subject and summarizes everything in this article.
Note: we have gathered the current information found on different sources like LovinMalta or Independent Malta. There may be changes to the law by January 2020, or misinterpretations have crept into this article. We nevertheless hope and believe that we have gathered all the information necessary to make this reform clearer to everyone.
Why launch a rental reform in Malta?
A reform of the rental market was becoming essential, given the many drifts that have been observed in recent years. Besides the consequent black market for rentals in Malta, abuses and variations in procedures depending on the owners became a real problem on the island. Prime Minister Joseph Muscat said the change was necessary to frame a market that was becoming “a jungle where everyone can do whatever they want.”
The current Maltese rental market: the facts
It is true that renting a property in Malta can prove to be a real trap depending on the owner and the relationships you have established with it. There are apartment to let in Malta and no doubt that for a long term rental it will be bliss.
There are quite a few scams: nonexistent accommodation, unpaid deposit, unhealthy accommodation, dismissal within 24 hours. There are countless disappointments and bad experiences.
Some owners simply do not draw up a contract, or do not declare their accommodation or their activity to the Maltese government.
Faced with this worsening observation from year to year and given the magnitude of the situation, a rental reform in Malta was therefore decided.
The ambition of the new rental reform
Prime Minister Joseph Muscat and lawyer Kurt Scerri, in charge of the legal application of the reform, indicated that the aim of the reform was to improve market predictability.
This reform is based on 4 essential pillars:
- Security
- Stability
- Flexibility
- The effectiveness
The primary goal is to get closer to European standards for rentals in Malta. Better legal framework for rental rules to better manage the market.
Who is affected by this reform?
These new regulations apply first of all for private rental accommodation, and not for social housing. They also do not concern contracts established before 1995.The reform will apply from January 1, 2020, so it concerns all contracts signed from this date.For contracts (in good standing) already in progress which end in 2020, the new regulations do not apply.
For all current contracts which are not in good standing (absence of a contract or essential clause), the rent paid by the tenant will be considered as a de-facto rental. The latter may thus have recourse to justice to request the regularization of his situation.
