As from 1st January 2020, new rent agreements regarding all private rental properties have to be registered. There are also minimum and maximum rent periods for long lets and short lets respectively.
Which contracts are covered by the new law?
Which contracts are not covered?
Important points:
Essential requirements for a contract of lease, under pain of nullity:
All private residential rent agreements must be in writing and must include:
Forbidden Clauses:
REGISTRATION OF RENTAL AGREEMENTS:
Lessors must register the lease contract with the Housing Authority within ten days of the commencement of the lease. Should the lessor fail to carry out this duty, the lessee may register the lease contract himself, and deduct the expense from the lease. This obligation also applies to those contracts entered into after 1st June 1995, but before the coming into force of the Act and which would still be in force as of 1st January 2021.
Which contracts are covered by the new law?
- Rent agreements of residential property entered into or renewed after 1st January 2020
- Rent agreements of residential property entered into after 1st June 1995 and still in effect after 1st January 2021
Which contracts are not covered?
- Tenements which belong to the Government of Malta
- Tenements which are let solely for tourism purposes
- Tenements which are not let for primary residential purpose
- Tenements let before 1st June 1995
Important points:
- The contract of lease must be made in writing
- Long private residential leases cannot be made for a period of less than one year.
- Rent can only be increased once a year up to a maximum of five percent (5%)
- In case of long residential leases, the first six months (in 1 year contacts), or nine months (in 2 year contracts), or twelve months (in contracts of 3 years or more) are obligatory for the lessee, following which, the lessee may give at least one/two/three months notice respectively to the lessor by means of a registered letter if the lessee wants to terminate the lease.
- The lessor has to give at least three months notice prior to termination of the contract if s/he does not intend to renew the lease. Failure to do so would mean that the lease is renewed automatically for a year.
Essential requirements for a contract of lease, under pain of nullity:
All private residential rent agreements must be in writing and must include:
- the tenement to be leased
- the agreed use
- the rent period
- whether such lease may be extended and in what manner
- the rent amount and the manner in which such amount is to be made
- any amount deposited by the lessee by way of security
- an inventory
Forbidden Clauses:
- Termination clauses other than those imposed by Law in cases of non-fulfillment of lessee's obligations or non observance of the conditions of the lease .
- Clauses releasing the lessor from the obligations as stipulated in the Law.
- Clauses imposing additional amounts aside from the rent.
- Clauses imposing charges for the use of furniture and movables.
- Clauses imposing additional charges for water and electricity bills.
- Side Agreements.
- Clauses which limit the use which one is expected to make of a residence
REGISTRATION OF RENTAL AGREEMENTS:
Lessors must register the lease contract with the Housing Authority within ten days of the commencement of the lease. Should the lessor fail to carry out this duty, the lessee may register the lease contract himself, and deduct the expense from the lease. This obligation also applies to those contracts entered into after 1st June 1995, but before the coming into force of the Act and which would still be in force as of 1st January 2021.
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