Island Properties

  • Home
  • Property Listing
    • Simple Listing
  • Malta Property News
  • Pages
    • To Let
    • For Sale
    • Miami City
  • Types
    • Villa
    • House
    • Apartment
  • Submit Property
  • My Properties
  • Gallery
  • Contact Us
  • About Us
  • Property Letting in Malta
  • Buy to Let Malta
  • Property Management Services
  • Property Consultancy Services
  • About Malta
  • Guide to Letting Property in Malta
  • Guide to Buying and Selling
  • Property Investment in Malta
  • Testimonial
  • Careers
  • Office Administrator
  • Real Estate Agent Job Opportunity
  • Testimonials
  • Sitemap
  • Rooms Malta
  • Interior Design
Submit
Island Properties

  • Home
  • About Malta
    • Guide to Letting Property in Malta
    • Guide to Buying and Selling
    • Property Investment
  • Properties
  • News
  • About Us
    • Property Letting in Malta
    • Rooms Malta
    • Buy to Let Malta
    • Property Management Services
    • Property Consultancy Services
    • Interior Design
  • Careers
    • Real Estate Agent Job Opportunity
    • Office Administrator
  • Contact Us
Submit

Malta Property News

Looking for certain features
The Estate Agents Section's Response to the Proposed Rental Reform

The Estate Agents Section’s Response to the Proposed Rental Reform

By

Amy Zammit

Posted in News On Sep 27, 2019

Following a briefing by legal experts regarding the proposed rental reform during an information session organised by the Estate Agents Section (EAS), members of the Malta Developers Association Landlords Section found that both themselves and their tenants will end up being worse off. Due to this, the EAS has contributed further to the debate over the proposed reform.

The Estate Agent’s section within the Malta Developers Association has always been in favour of introducing a reform which improves the industry, whilst also safeguarding the needs of both landlords and tenants. For this reason, numerous consultation meetings were held between the EAS and Government entities to construct a bill that covers the salient challenges currently faced by the industry.

 

Notice periods for landlords/ tenants

 

The MDA Estate Agent’s Section emphasised that there are issues within the proposed bill which may potentially introduce limitations in the industry, rather than aid it. One of these points in question is the one which allows tenants to withdraw from a contract after providing sufficient notice, whilst also receiving back their deposit. This change would void the concept of having a long-term contract and security deposit. Furthermore, this reform would introduce uncertainty for landlords and will allow tenants to rent properties for short-term periods over summer and exit the contract in winter without losing their deposit. In response to this, the EAS believes that this option should only be available in very specific circumstances. Furthermore, the association also emphasised that the duration of a contract should be respected in full. An opt-out period may encourage abuse by tenants. A spoke person from the EAS added that this new law will also add pressure on landlords’ bank loan repayments.

Although the Government has expressed this bill as a means to promote longer-term leases, the lack of freedom on contract and the introduction of an easy withdrawal by tenants will result in landlords feeling reluctant to enter long-term contracts. As a result of this, investors will stop investing in the market and lower quality units will begin to appear on the market. Some landlords have already threatened to close their doors and leave properties empty under these conditions.

 

Room Rentals

 

The rental of rooms is a growing trend in the industry which has mitigated many issues by providing affordable housing for lower-income earners. The proposals which cover this sector are creating more issues rather than solving them, which in turn, may lead to extensive issues in the employment industry.

 

Enforcement and Registration

 

Although the EAS strongly supports stricter regulations, enforcement and regular inspections of rental properties, the association feels as though the bill has given unlimited power to the Housing Authority and its officials. The proposal gives the Housing Authority the right to enter a household without any reason – something which even the Malta Police Force can’t do. Whilst inspections must be carried out to ensure adequate living conditions, it was noted that a basic warrant driven process should be introduced to reduce cases of abuse of power.

The registration of all contracts, including current ones, is one of the strong points of this bill. However, with no mention of Estate Agents being able to register these contracts in the name of their clients, the EAS feels their role was completely disregarded.

Whilst the Estate Agents Section is strongly in favour of a bill which aims to strengthen the rental industry, the association feels as the current proposal falls short of safeguarding the market and the interest of landlords. The EAS feel that even though a number of their suggestions have been introduced into the proposal, most suggestions have not been given any attention. The association hopes that the draft will be adjusted with their suggestions to compose a bill which protects both parties.

For more information regarding the rental reform, be sure to visit our previous post, where we tackle what the proposal entails.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Scan to contact us via Facebook Messenger

Island Property Messanger

Calculate Mortgage Payments

Featured Properties

Featured
View Property

Two Bedroom Apartment In St Julians

This Apartment is located in the highly sought after locality…

Bedrooms
2
Bathrooms
2
For Sale

€370,000

Featured
View Property

Three Bedroom Property in Mosta

Ground floor property vert well finished located in Mosta. This…

Bedrooms
3
Bathrooms
2
To Let

€650 Per Month

Scan to contact us via Facebook Messenger

Island Property Messanger

Find Your Home

Advance Search is already enabled in the header.

Featured Properties

Featured
View Property

Apartment in Sliema

Highly finished and furnished corner apartment with outstanding, unobstructed sea…

Bedrooms
3
Bathrooms
1
To Let

€2,195 Per Month

Island Properties

Island Properties Malta

Address:
Phone:
Mobile:
E-mail: info@islandproperties.com.mt

Popular Cities

  • Sliema
  • St' Julians
  • Swieqi
  • Madliena
  • Ibragg
  • Valletta
  • Mellieha

Menu

  • Malta Property News
  • Home
  • Property Search in Malta
  • Contact Us
  • About Us
  • Careers in Real Estate
  • Real Estate Agent Job Opportunity
  • Sitemap
  • Rooms Malta
  • Interior Design

COPYRIGHTS ©2019 | ISLAND PROPERTIES | ALL RIGHTS RESERVED

Customised by A-Design Lab

Proposed Rental Reform to be Active by January 2020 Proposed Rental Reform to be Active by January 2020 Island Properties Five of the most popular furniture styles Island Properties Five of the Most Popular Furniture Styles