Understanding the New Private Residential Leases Act

In August 2022, RE/MAX Malta commissioned market research where we asked over 560 residents renting a property in Malta a series of questions to get a broader picture of the local rental market. As they say, knowledge is power, and understanding the sentiment of the people that are renting a home is the best way to get to know your customer.

Private Residential Act

One of the questions that was asked in the Consumer Property Market report, was formulated to find out how much the respondents knew about the new Private Residential Act that was launched in 2020. It happens that only 38.53% of the respondents said that they were somewhat familiar with the new changes, and another 28% said that they were not so familiar.

So, after we understood that there is a major gap in knowledge, we decided to start educating the public and going into companies that have a predominately foreign contingent and delivering keynote presentations to assist them in increasing their knowledge and most importantly helping tenants to understand their legal rights. Here is a small summary of the latest Private Residential Act.

What is the Private Residential Leases Act?

The Private Residential Leases Act, was introduced in Malta in 2020. It is a significant piece of legislation that aims to provide greater protection for landlords and tenants renting a property in Malta. The Act sets out new rules and regulations for private residential leases, which include agreements between individual tenants and landlords which include key provisions involving:

1. Tenancy Agreement requirements

The Act mandates that a tenancy agreement must be in writing and signed by both the landlord and the tenant. The agreement must also include the names of the parties, the address of the property for rent, the rent amount, and the length of the lease.

2. Rent

The landlord must provide the tenant with a receipt for any payment relating to the property for rent, and the stipulated lease amount cannot be increased during the first two years of the tenancy. After two years, any increase in rent must be justified and communicated to the tenant at least three months in advance. Learn more about terms to include in your rental agreement.

3. Deposits

The Act limits the amount of deposit a landlord can request from a tenant to one month’s rent. The landlord must also return the deposit to the tenant within 30 days of the termination of the lease.

4. Termination of lease

The Act provides for a mandatory notice period of one month for the termination of a lease by either the landlord or the tenant. This notice period can be increased to two or three months, depending on the length of the tenancy. Read more about tips for dealing with your landlord.

5. Repairs and maintenance

The landlord is responsible for the repair and maintenance of the property for rent in Malta, and the tenant must report any necessary repairs to the landlord in writing. The landlord must carry out the repairs within a reasonable time frame.

6. Dispute Resolution

Finally, the Act establishes the Housing Authority as the body responsible for handling disputes between landlords and tenants. The Authority can issue orders for the payment of rent, repairs, or any other issues related to the tenancy.

Private Residential Leases Act framework

The Private Residential Leases Act is an important step forward in ensuring that the private rental market in Malta is fair and transparent for both tenants and landlords. The Act provides clear guidelines for tenancy agreements and rent increases and sets out a clear framework for resolving disputes. Tenants and landlords alike should familiarize themselves with the Act to ensure that they understand their rights and obligations under the law.

For more information regarding the Private Residential Leases Act, kindly feel free to contact us at letting@remax-malta.com or if you are a company that is interested in a free presentation of the new The Private Residential Leases Act, contact ceo@remax-malta.com.