On January 1, 2020, the Private Residential Leases Act [Chapter 604 of the Laws of Malta] came into force.
The Act APPLIES to private residential leases that are entered into or renewed on or after the above-mentioned date. Leases that were granted after June 1, 1995 and that are still in force after January 1, 2020 shall continue to be regulated by the provisions of the Civil Code.
It does not apply to:
- tenements belonging to the Government of Malta;
- tenements let to any tourist, exclusively for tourism purposes;
- tenements that are not let for a primary residential purpose;
- tenements let before June 1, 1995.
All private residential lease contracts entered into on or after January 1, 2020, including their renewal, have to be REGISTERED with the Housing Authority within 10 days of the commencement of the lease, under pain of nullity. Private residential leases that were entered into after June 1, 1995, but before January 1, 2020, and which would still be in force on January 1, 2021 or that have been renewed beyond the last-mentioned date, also have to be registered.
All private residential lease contracts made on or after January 1, 2020 shall be made in writing and must include the following set of MINIMUM REQUIREMENTS, under pain of nullity:
- the tenement to be leased;
- the agreed use of the tenement let;
- the period for which the tenement shall be let;
- whether such lease may be extended and in what manner;
- the amount of rent that shall be paid and the manner in which such payment shall be made;
- any amount deposited by the lessee by way of security for the performance of his obligations; and
- an inventory, in the form of documentary evidence, attesting the condition of the tenement as well as the state of any furniture and domestic appliances supplied by the lessor.
The Act distinguishes «long private residential leases» from «short private residential leases», setting minimum contractual durations.
A LONG PRIVATE RESIDENTIAL LEASE cannot have a duration of less than 1 year. It shall cease to have effect upon the expiration of its term, provided that the lessor gives notice to the lessee at least 3 months before. In the absence of a notice of termination by the lessor to the lessee, the lease shall be deemed to have been renewed for a further period of 1 year and shall continue to be renewed as such in the absence of a notice of termination thereof.
The lessee may not withdraw from a long private residential lease before the lapse of:
- 6 months, where the lease is for a period of less than 2 years;
- 9 months, where the lease is for a period of 2 years but less than 3 years;
- 12 months, where the lease is for a period of 3 years or more.
If the lessee withdraws from the lease before the lapse of the foregoing periods, the lessor may retain an amount not exceeding 1 month’s rent from the deposit left by the lessee, without prejudice to the lessor’s claims and, or right of action for the payment of any sum due and, or any damage sustained.
Notwithstanding the above, the parties may agree to more advantageous conditions for the lessee in connection with the withdrawal of the lease.
A SHORT PRIVATE RESIDENTIAL LEASE is a lease negotiated for a duration of 6 months, which applies to:
- non-resident workers employed for a period of less than 6 months;
- non-resident students who are enrolled in courses for less than 6 months;
- residents who need to rent an alternative primary residence for a period of less than 6 months;
- non-residents who need to rent a tenement for a period of less than 6 months, provided that they would not be seeking to establish their long residence in Malta.
Save as otherwise agreed upon (more advantageous conditions for the lessee), the lessee may not withdraw from a short private residential lease before the lapse of 1 month.
A short private residential lease may not be extended and shall cease ipso jure on the expiration of the term expressly agreed upon, and it shall not be necessary for either of the contracting parties to give notice to the other.
The Act also provides for the LETTING OF SHARED RESIDENTIAL SPACE.
Any person who is found granting any tenement, or any separate space therein, for a residential purpose, which is not in accordance with the provisions of the Act, shall be guilty of an offence against the Act and shall be liable, on conviction to a FINE (multa) of not less than €2,500 and not exceeding €10,000.
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