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Quick checklist of things to know and do before renting in Malta

25/4/2021

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​The Residential Leases Act has changed the game plan considerably for prospective tenants who want to rent in Malta.  Tenants need to know this.  So I've prepared a checklist of things you need to know, and forms you and your landlord need to complete before you settle on a particular rental property. 


1.  Do NOT put down a holding deposit for a property before seeing the property, checking the contract or signing the contract.  Letting agents are still not regulated and some think nothing of showing you a property belonging to a landlord who has absolutely no intention of registering the contract, which is more often than not ridden with clauses in breach of the Maltese Civil Code and / or the Residential Leases Act.  Please note that it is the responsibility of the landlord to register the contract.  If they do not do this then they are in breach of the law and there are serious sanctions, including fines, prosecution in a civil and / or criminal court plus the rent being reduced to below market value for a year for the tenant.  (See item number 6 below.)  If you do put down a holding deposit and then decide against the property, you will have great difficulty in getting back your deposit.  Do not be pressurised to put down a holding deposit.  Any pressure to do this should be a warning sign and you should WALK AWAY.  

2.  Make sure that the contract includes the 7 essential requirements which are:  


  • the property to be leased
  • the agreed use of the property to be leased
  • the period for which that property will be let
  • whether the lease may be extended and in what manner
  • the amount of rent that shall be paid and the manner by which such payment shall be made
  • the amount deposited by the tenant as security for their obligations
  • an inventory, in the form of documentary evidence, attesting to the condition of the property as well as the state of any furniture and appliances

If a contract is missing one or more of the above requirements, then it is unregisterable and null and void.  In this case, neither the landlord nor the tenant will be protected by the Maltese Civil Code or the Residential Leases Act.  The tenant can walk out of the property at any time they like without penalty.  Neither party can submit a dispute if the contract is not registered.  However, if the contract includes all 7 essential requirements, then the tenant can register the contract themselves.  The fee for this registration will be payable by the landlord.  The tenant can deduct this amount from the rent.  

3.  Under the Residential Leases Act, the onus is on the landlord to make sure that their tenants are on the correct Arms tariff via Arms Form H.  If, for any reason, the tenant is on the incorrect Arms tariff for people living in their primary residence, the Residential Leases Act is very clear that the landlord will have to refund the overcharge or the tenant can reduce the rent paid by this amount.  Therefore it is in your landlord's interests to make sure that Arms Form H - change in the declaration of number of persons - is completed.  The landlord needs to complete Section A as account holder.  The tenants need to complete Section B.  All concerned need to provide copies of photo identification.  

Arms Form H.pdf
File Size: 1182 kb
File Type: pdf
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4.  Also under the Residential Leases Act, the landlord is obliged to make sure that the tenant only pays for their consumption of water and electricity.  Again, if it is clear that the tenant has paid for some other occupant's consumption of water and electricity, the landlord will have to refund the difference.  Therefore, it is in your landlord's interests to make sure that Arms Form N - Verification of Pending Dues is completed at the start of the tenancy.  This will zero the Arms bill so that you, the tenant, will not pay for the utility bills of the property's previous occupants.  
Arms Form N.pdf
File Size: 111 kb
File Type: pdf
Download File

5.  If there are any issues during your tenancy please note that you can submit an online dispute.  This costs 10 euro and a decision will be made within 5 working days of last submissions.  You can only submit a dispute if the contract is registered.  Please note that phoning the Housing Authorithy or emailing the Housing Authority with your complaint will not work.  You need to follow the correct procedure which is to submit an online dispute.  Make sure you include all possible evidence for your complaint. 

6.  If you cannot register the contract because it is missing one or more of the essential requirements, you can report the tenancy.  The Housing Authority will confirm that you do indeed reside in the property.  The sanctions for the landlord in this case are fines and / or prosecution in a civil or criminal court of law.  Moreover, the rent will be reduced to below market rates for a certain period.   

For more detailed information on the Residential Leases Act please see:

  • Essential information on the post 2020 rental contract
  • The three types of post 1995 residential contracts
  • Onus now on the landlord to ensure that the tenant is on the correct Arms tariff
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Onus now on the landlord to ensure that the tenant is on the correct Arms tariff

21/4/2021

1 Comment

 
Article 17 and Article 7f of the new Residential Leases Act legislate for the burning issue of tenant utility bills.  Over the decades thousands of tenants have overpaid by thousands of euro on their Arms bills.  Despite the best efforts of many - including yours truly - Arms, the sole, state owned utility billing company, continued to overcharge tenants for their utilities with impunity.  I am confident that Article 17 and Article 7f of the Residential Leases Act will put paid to this, once and for all.  ​
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The gist of the legislation is as follows:

1.  The landlord has to make sure that their tenants are on the correct Arms tariff for people living in their primary residence.  They can do this by completing Sections A and C of Arms Form H - Change in the Declaration of Number of Persons.  All occupants of the rental property need to complete Section B.  Both landlord and tenants need to provide copies of identification documents.  
Arms Form H.pdf
File Size: 1182 kb
File Type: pdf
Download File

2.  If the landlord does not do this, then they will be liable for any overcharge incurred by the tenant, with the tenant allowed to deduct any overcharge from the rent.  

​3.  The tenant must have access to the proper Arms bill - green, 2 pages.  If the tenant does not have access to the Arms bill, then they are not obliged to pay the bill.  Please note that the Arms online calculator, for various reasons, is not a reliable indicator of the cost of your utilities.  The Arms online calculator itself contains this disclaimer:  
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4. The landlord cannot take the law into their own hands and unilaterally cut off any water and electricity supply to effect an illegal eviction, no matter the perceived justification.  This has always been a criminal act but over the years landlords, letting agents and sometimes even lawyers (I kid you not) have decided that landlords could behave in this way.  This is in breach of Article 85 of the Criminal Code:
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5.  Article 1570 of the Civil Code provides a legal mechanism for the eviction of defaulting tenants.  If a tenant fails to pay the water and electricity bills, then this will be considered to be a partial default and will entitle the landlord to demand a dissolution of the rental contract.  The contract will be terminated if the tenant fails to pay the outstanding Arms bills or the outstanding rent within fifteen days from the notification of a judicial letter. 
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6.  Article 7 lists a series of forbidden clauses.  If any of these forbidden clauses are listed in a rental contract they are completely without effect.  Therefore the tenant can rest assured that these clauses can be ignored. 

Article 7f prohibits clauses which stipulate the payment of a fixed amount on account towards the Arms bill.  This ties in with Article 17f which stipulates that the tenant is not obliged to pay unless given access to the proper Arms bill - green, 2 pages.
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Furthermore Article 7f stipulates that the tenant must only pay for their consumption of utilities.  Therefore the landlord cannot pass on the bills of previous occupants of the rental property to their new tenants.  I would advise all prospective landlords and tenants to therefore make sure that they complete Arms Form N - Authorisation of Verification of Pending Dues at the start of the tenancy so as to zero the Arms bill.  
Arms Form N.pdf
File Size: 111 kb
File Type: pdf
Download File

If a tenant wants to be a joint account holder with the landlord of the Arms bill, then a deposit of 466 euro and a non refundable fee of 50 euro are payable.  Arms Form F2 - Temporary Recognition of Tenant in Rented Premises will need to be completed.  The tenant will then be responsible for the completion of Arms Form H to make sure that they are on the correct Arms tariff for people living in their primary residence.  
Arms Form F2.pdf
File Size: 127 kb
File Type: pdf
Download File

Personally I do not see any advantage in being an account holder.  Going the Arms Form H route is completely free and the Residential Leases Act is very clear that the landlord will be liable for any overcharge.  

Finally, if there are any breaches of the Residential Leases Act where Arms bills are concerned, then for the price of 10 euro, either party can submit an online dispute.  The Residential Leases Act is very clear on the obligations of both landlords and tenants where Arms bills are concerned.  A decision will be made by the Dispute Panel within 5 working days of last submissions.  
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The three types of post 1995 residential leases

12/4/2021

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The extensive consultation with all stakeholders of the white paper team before the Residential Leases Act came into effect established a need for 3 different residential contract scenarios:

  • Long Let Contracts
  • Short Let Contracts
  • Shared Residential Space Contracts

Please click on the above links for more detailed information on each of the three types of residential contracts. 

​​Moreover, it was established that these three renting scenarios needed to be distinct from holiday lets.  Short holiday lets fall under the jurisdiction of the Malta Travel and Tourism Services Act and completely depend on whether or not the person occupying the property for the duration of the short holiday let is a tourist or not.  This is how the Malta Travel and Tourism Services Act defines a tourist:  
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All three types of residential lease above must be registered with the Housing Authority.
 
For more information on contract registration, please click on this link:  
Essential information on the post-2020 rental contract​
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Essential information on the post 2020 rental contract

6/4/2021

3 Comments

 
The  Residential Leases Act came into force on January 1st, 2020.  I will be  writing a series of information blogs which will hopefully help you become more aware of your rights and responsibilities under the new rent law. 

​This first blog in the series will include details of how to  make sure that your rental contract is  compliant with the Residential Leases Act.  Every rental contract must contain the seven essential requirements listed below in order for the registration process of the contract with the Housing Authority to be conducted as smoothly and efficiently as possible.  
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 If the contract does not contain one or more of the above seven essential requirements, then it will not be possible to register the contract with the Housing Authority and the contract will be null and void.  ​ Please note in particular the inventory, which is often forgotten. 

Also please remember to get your landlord to sign Arms Form N - Verification of Pending Dues.  This will zero the Arms bill so that you will not pay for the bills of previous occupants of the rental property.  Please click on the link below for a copy of Arms Form N:  
n-_authorisation_of_verification_of_pending_dues.pdf
File Size: 111 kb
File Type: pdf
Download File

Finally please remember to ask your landlord to sign Arms Form H - Change in the number of persons declaration.  Your landlord will complete Section A of this form; all the occupants of the rental property will complete Section B.  Landlord and occupants will have to also provide copies of photo identification.  This will make sure that you are on the correct residential utility tariff for people living in their primary residence.  The default tariff is the second home tariff which is extortionate, especially for water.  The only way to be on the correct utility tariff for people living in their primary residence is via Arms Form H.  Please click on the link below to download this form:   
h_-change_in_number_of_persons_declaration_31072015__1_.pdf
File Size: 1182 kb
File Type: pdf
Download File

For a standard rental contract taken from the very useful and official Housing Authority rental website, please click on the link below:   ​
long-private-residential-leases.pdf
File Size: 170 kb
File Type: pdf
Download File

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The landlord must register the contract with the Housing Authority within ten days of the commencement of the lease.   If the lease is registered after ten days then there will be an additional fee. If the landlord fails to register the contract within the ten days, then the tenant can register the rental contract at the expense of the landlord.  ​
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It is in both your interests and the interests of the landlord to make sure that the contract is registered.  If it is not registered, neither party will be able to access the protection provided by the Residential Leases Act or the Maltese Civil Code.  Moreover, neither party will be able to submit a dispute. The facility of submitting an online dispute costs 10 euro and a decision will be made by the Dispute Panel within 5 working days of last submissions.  There are many clauses in the new rent law which protect the tenant from various problems to do with renting, for example, the overpayment on their consumption of water and electricity and the unjustified retention of their deposit.  I will be looking at these in more detail in other blogs.  This means that a tenant will definitely win a dispute if, for example, they are on the incorrect Arms tariff for people living in their primary residence.  

If the landlord refuses to register the contract and the tenant cannot register it because it is missing one of the seven essential requirements, then there is the option of reporting the tenancy.  This will  mean  fines / prosecution in a criminal and / or civil court of law for the landlord plus the Housing Authority fixing the rent for the tenant at below market rent rates. Th
e Housing Authority will first have to establish that the tenant is indeed living in the rental property.  

One final note.  Please do not be surprised if your rental contract contains clauses which are forbidden clauses, listed under Article 7 of the Residential Leases Act.  The Housing Authority has limited resources.  It registered circa 30 000 rental contracts in the first year of the Residential Leases Act, and therefore is unable to check the minute detail of every clause of every contract.  These clauses will hopefully die a natural death as more and more letting agents / landlords / tenants learn more about the intricacies of the 2020 Residential Leases Act. Rest assured, however, that these clauses are completely without effect.  Therefore you can ignore them completely and with no ill effect.  Also, please rest assured that the Residential Leases Act and the Maltese Civil Code trump any clause in any rental contract, no matter what any letting agent or landlord may tell you.  
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    Author

    Johanna MacRae

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