Malta Rent Reform 2021

Malta Rent Reform 2021 

Reletting of Urban Property (Regulation)

Chap. 69 of the Laws of Malta 

Recent amendments to the laws regulating pre-1995 leases grant the landlord the right to request an increase in rent of a maximum of 2% more than market value.

In respect of private leases concerning dwelling houses commencing before 1st June 1995 and still in force to date:

  • the Lessor may apply to the RRB (Form A) to review the rent to a maximum of 2% p/annum over the free and open market value of the dwelling house on the 1st January of the year in which the application is filed.
  • The Housing Authority becomes a party to the proceedings.
  • Means Test is carried out on Tenant (important to refer to the definition of tenant)
    1. If Tenant fails the Means Test (i.e. he/she has income or capital which is in excess of the thresholds set out in the Continuation of Tenancies (Means Testing Criteria) Regulations the tenant will be asked to vacate the dwelling house within two (2) years and the RRB will set the rent payable for the two year period.
    2. If the Tenant meets the Means Test (i.e. his/her income and capital do not exceed the thresholds set out in the above-referred regulations then the RRB will establish the increased rent and thereafter the rent will increase in accordance with Regulations published by the Minister from time to time.

The Lessor may make a fresh request for an increase after 6 years from the first request OR may make a request if the circumstances of the Tenant change. If he “fails” the Means Test during this second (or subsequent request) the procedure under a. will apply.

  • The tenant may apply to the Housing Authority for a subsidy on the rent under the Private Rent Housing Benefit Scheme.

If you are a landlord and would like to explore your options in terms of this law, please contact us on legal@emd.com.mt

 

Useful links:-

https://housingauthority.gov.mt/en/Documents/Pre95/Pre95%20Unit%20Infosheet.pdf

https://housingauthority.gov.mt/en/Pages/Schemes/Housing-Benefit.aspx