The Minister for Social and Affordable Accommodation Roderick Galdes announced during a news conference that on 1 September 2024 the legislative amendments to the Act on Private Residential Rentals will come into force, as well as the Regulations of -2024 on the Limitation on the Number of Residents who can occupy a rented house.
The Minister stated that these amendments are prompted by the principles that this Government embraces; principles of dignity and stability, and will offer peace of mind to both landlords and tenants. The Minister explained how in 2020 it was this Government that took a strong position and for the first time in our country a law was introduced to regulate private residential rentals. “As a Government we did not stop there but we studied the sector, we dialogued with the social partners, we listened to the experiences of the owners and tenants and now these legislative amendments will come into effect”, the Minister claimed.
“This Government should not hesitate to take the necessary decisions. Therefore we will be strict when it comes to overcrowding in houses used by some tenants (shared) in private residential rentals. With this law, the Government will regulate this situation by determining the number of residents who can live with a lease in the same house, according to the declaration of the owner during the registration of the contract, Minister Galdes said.
The Minister recalled that this law does not apply to families. He went on to explain that in case a residence has two (2) bedrooms and a minimum of one (1) bathroom, only four (4) residents are allowed. In case the number of bedrooms rises to three (3), the number of allowable residents is limited to six (6). In cases of exceptions where there are houses that have more than three (3) bedrooms, the law is also clear in this regard.
Leases that started before the entry into force of these amendments remain regulated by the laws as they were in force at the time of the start of the lease. While leases that remain in force until the thirty-first of August of the year two thousand and twenty-five (31/08/2025), regardless of the start date of the lease, must be in compliance with these -laws.
The law will also be simplifying the processes related to the express renewal, the replacement of the tenant, the increase in tenants and the consensual terminations between the owner and the tenant.
Minister Galdes was clear that no abuse will be tolerated. “Through these amendments we will continue to strengthen the Enforcement Section in order to reduce abuses and in case of abuse, legal procedures will be followed.”
The Housing Authority will be given the power to administer administrative penalties in cases where a person is found guilty of a crime. These circumstances can lead so that if the accused person does not pay the administrative penalty in twenty one (21) days, that person will be brought to the Criminal Court and in case of guilt can be fined up to a maximum of €10,000.
“With this law we will not only be strengthening the duties and rights of owners and tenants, but also ensure peace of mind to the neighbors of places with private residential rentals.” The Minister appealed to the public to be part of this walk and in case of violation of the law should make a report on the website of the Housing Authority: https://housingauthority.gov.mt/ .
The Minister emphasized that he will be strengthening the register of owners and tenants who do not honor the decision of the Arbitration Panel or the Court. Through this register the owners and tenants who are about to enter into a contact for a private residential lease will have the facility to check if the person they entered into the agreement with is on the list.
“We look forward to continue to strengthen the field of private residential rent, to look after today’s and tomorrow’s needs of owners, tenants and the same market, as well as continue to ensure a high quality of life for our people”, concluded Minister Galdes.
The Chief Executive of the Housing Authority, Matthew Zerafa stated, “These amendments are confirmation of a live and sensitive process for the realities we have in our country. As a Housing Authority we are committed to ensuring a stable future for our communities.”
