Malta's laws on private residential leases have been updated, with the changes coming into force on 1st September 2024. The amendments seek to clarify various legal provisions, promote transparency, and ensure a fair process for both landlords and tenants when registering lease agreements with the Housing Authority.
Key Obligations For Lessors
The time frame for registering rental agreements has been extended from 10 to 30 days and the process must be completed online. A shift in terminology from "duty" to "obligation." makes clear the obligation for lessors to register private residential leases (ie rental contracts).
Lessors are required to specify the number of residents that will live in the premises, while the Minister has the authority to establish regulations on minimum habitability standards and set limits on the number of occupants allowed at any one time. Importantly, even if the Housing Authority authorizes a rental agreement, it does not serve as a certificate of habitability for the property. Should the property fail to meet the new regulatory standards, the lessor may face penalties.
New Inventory Requirements
To successfully register private residential leases in Malta, an inventory must be provided as documentary evidence, and signed by all parties. This inventory should detail the condition of the property and any furniture or domestic appliances supplied by the lessor. Photographs may also be used as long as they clearly and accurately reflect the state of the property and its contents. Even when the property is rented unfurnished, an inventory is still required. Notably, the new law has removed the obligation to include the amount of the security deposit paid by the tenant.
Tacit and Express Renewal
The new law introduces the option for an express renewal of the lease, allowing for the explicit extension of the lease by express agreement in writing signed by both parties. This complements the existing tacit renewal provision which provides that if the lessor fails to give the lessee notice of termination at least three months prior to the lease's expiration, the private residential lease is automatically extended for an additional year.
Substitution/Addition of New Lessee
Any party may also request the substitution or the addition of a lessee in a private residential lease in Malta. Both a substitution or an addition would require the express consent of both the lessor and the lessee(s). This article also introduces the terms "outgoing lessee" and "incoming lessee," where the former is the original lessee, and the latter is the new lessee replacing the former. The new lessee will be responsible for any debts incurred before their addition to the agreement. Importantly, new parties to the agreement must have access to the original agreement and all relevant registration details.
Registration of a new Lease upon Consensual Termination
If both parties mutually agree to end the lease early, or if the tenant vacates without notifying the lessor, the lessor may apply for a new lease on the same property. This is permissible even if the original lease term has not yet expired, as long as the landlord informs the relevant authority of the early termination or abandonment. The authority will then notify the previous tenant of the lessor's request to cancel the lease.
Transitory Provisions
Leases in Malta, which commenced prior to the amendments introduced by the Amending Act shall continue to be governed by the previous Act. Leases still in force on 31st August 2025 must, however, comply with any laws or regulations stipulating occupancy limits.
Considering becoming a resident in Malta?
Whether you are planning to relocate to Malta for personal or professional reasons, the island offers a variety of residency programmes to suit different needs and lifestyles. Malta's residency programmes come with distinct requirements, one of which is leasing (or owning) a property. This is a key element in qualifying for most programmes, and it is therefore essential to understand the current legislation surrounding private residential leases.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
