5 Important Terms You Should Include In Your Rental Agreement

Whether you’re a tenant or a landlord, when renting a property in Malta or Gozo, the most important document involved is your rental contract. This lays out the terms of the rental, including everything from how much the rent will cost to the obligations of both parties. 

Signing a rental agreement is usually a simple process which is typically performed through a real estate agency. That said, rental contracts are legally binding documents that will be relied upon when it comes to resolving any disputes that may arise between the landlord and tenant (as well as helping to prevent those disputes in the first place!) so it’s important not to take the process lightly. 

With a number of legal considerations to keep in mind, drawing up a rental contract is best done through an estate agency or law firm. Thanks to this article, we have provided you with 5 important terms you should include, as a landlord, in your rental agreement for your property for rent in Malta or Gozo. 

1. Rent costs 

One of the most important contents of your rental contract is payment terms for rental and utility bills. By law, rent can be established freely between the two parties, although it can only be increased by a maximum of 5% per year. The contract should specify when and how rent is to be paid. 

Utility bills are not normally included in the monthly rent, and the way these are to be paid – whether to the landlord or directly to the supplier – should be included in the rental contract.

2. Duration of the contract and termination

The rental contract, for your property for rent in Malta, will also specify how long the rent will last. Long lets have a minimum duration of one year, although the parties can agree to a longer term. A notice period for ending the contract should also be stipulated. By law, the tenant cannot leave the contract within the first six months, and after that has to provide a notice period of at least one month. 

When the contract is due to end, the landlord must provide three months’ notice if they do not intend to renew the lease, otherwise it is automatically renewed for a further year. The rental contract could also provide specific arrangements on renewals beyond this.

3. Deposit and inventories

The rental agreement, for your property for rent in Malta or Gozo, should include a security deposit the tenant pays to the landlord at the start of the contract to protect against any damages done to the property during their tenancy. This is usually equivalent to a month’s rent and should be returned at the end of the lease or used, fully or partially, to pay outstanding bills or repair damages that may have been caused. 

It’s important to compile and include an inventory report outlining the condition of the property at the start of the lease, so that it can be referred to again if any questions arise. 

4. Tenant obligations

Keeping control of your rental property is an important task. As a tenant, what you can and can’t do in the rented property in Malta while you live there should all be outlined in your rental agreement. Whether you can smoke, have pets, paint walls or make other changes should all be explicitly agreed to. Subletting the property is generally not allowed, but the contract could provide for this. In a shared building like an apartment complex, there will also be rules laid down by the administrators of the area as per the Condominium Act that need to be followed. 

5. Landlord obligations

Landlords are obliged to register the rental agreement with the Housing Authority in Malta and could face fines if they fail to do so. They should also take out insurance on the property for rent in Malta and its contents, to cover damages, theft, fire, and other possible occurrences. 

Other obligations, such as which repairs fall under the landlord’s responsibility and how they are to be carried out, or when and how inspection visits can take place, can also be outlined in the rental agreement. 

Key rental contract contents at a glance

• Names and ID card (or passport) numbers for both landlord and tenants
• Address of the property being rented
• How long the lease is for, along with its start and end dates
• Rent amount, and when and how it should be paid, as well as the security deposit
• Whether and how the rental agreement can be renewed
• Inventory detailing the condition of the property at the start of the lease

Choosing the right real estate agent is very important. A reputable real estate agent is the best person to guide you on the details of a rental agreement. RE/MAX Lettings agents have the experience and training to help you through all the technicalities and to guide you on every step of your rental journey as a landlord or tenant. Get in touch today to get started to find your ideal property for rent in Malta or Gozo.