Maltese Rent Laws

Homes For Rent - Maltese Rent Laws

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The rent laws in Malta dissect Maltese tenants into two categories: those who contracted their lease prior to 1995 and those who signed their lease compact after 1995. Contracts entered into after 1995 are regulated by the Civil Code, the lowly civil law of the land, whereas tenants whose commencement of lease dates back before 1995 are regulated by the 'Special Laws', in this case, episode 69 of the Laws of Malta.

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These special laws were primarily promulgated to protect the tenant from eviction and from arbitrary increase of the yearly rent. episode 69 extends such protection. It almost freezes the yearly rent payable by the tenant and limits the landlord's power of negotiation with his tenant and his power to evict.

Chapter 69 of the Laws of Malta applies both to dwelling houses and to shops. It defines a tenant as extending to his or her husband or wife and also to house members residing with the tenant at the moment of his death if such tenant had no husband or wife.

According to this special law, it is unlawful for the lessor, or the landlord, to refuse to renew a compact of lease which terminates or expires. This law also states that the lessor, upon such expiration, cannot raise the rent or enforce new conditions.

Situations and circumstances spellbinding these protected leases are generally regulated by the Rent Regulation Board. This Board, which has the combination and function of a tribunal or a court of law, is empowered to grant permission of eviction or to increase the rent in very specified cases dictated by this special law. However, this power is also quite limited. The Rent Regulation Board can grant increase in rent if safe bet works to the asset must be carried out, or if the rent does not exceed 40% of the fair rent. This fair rent is fixed by means of a valuation of the premises based on the rent at which such premises could have been leased 'at any time prior to the 4th of August 1914'. The fair rent is thus based on what the premises would have leased for more than 80 years ago!

In Malta, many townhouses, found especially in the core of the villages, and which have been leased for over twenty years, are rented for Lm20 Eu46.59) per annum, Lm25 (Eu58.23) per annum and even Lm6 (Eu13.98) per annum! This special law also states that where the proposed increase in rent is to exceed Lm40 (Eu93.17) per annum, the landlord must give notice to the lessee by means of a judicial letter and the tenant has the right to contest it before the tribunal.

The state of many of these leased dwellings is piteous, to say the least. Landlords refuse to carry out and pay for any overwhelming or even maintenance works arguing that the rent would not cover a speckle of the cost for the works required. Tenants argue that they are not the owners and that it is not their responsibility to pay for such works.

In what circumstances is a landlord lawfully permitted to evict his tenant?
Chapter 69 of the Laws of Malta states that the Rent Regulation Board may grant permission to the landlord to evict the tenant if the latter fails to pay the rent twice consecutively. However, even if the tenant fails to pay, unless the landlord files a court application wherein he demands cost within 15 days, such failure to pay will not hold any water before the tribunal. Thus, the tenant must fail to pay in two consecutive instances and in both these two instances the landlord must have filed two court applications before the tribunal.

Another instance in which the Board may permit a landlord to evict the tenant is when the tenant requires the asset for his own work or that of his ascendants or descendants. In this case, the Board must be satisfied that the tenant has alternative room which is reasonably convenient to the means of the tenant.

The protection of these rent laws was halted by means of the enforcement of episode 158 of the laws of Malta which states that such protection will no longer be granted to lease contracts entered into after 1995. However, although the new leases being contracted presently give equal proprietary to tenants and landlords, the old rent laws still apply to the majority of leases in Malta. The majority of leases in Malta are very old leases, inherited from one generation to the other and thus the effects of such leases are still very much alive and very much felt. As a consequence, safe bet legacy town houses which could be restored to their old splendour, have been neglected and abandoned for many many years and there does not seem to be any clarification to this problem unless the proprietary of both the tenants and the landlords are safeguarded.

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