The residential leases act requires that any rental contract has the following:
The extensive consultation with all stakeholders of the white paper team before the 2020 Residential Leases Act came into effect established a need for 3 different residential contract scenarios:
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:
"A tourist means any person who is travelling to and staying in places outside his usual environment for not more than one (1) consecutive year for leisure, business or other personal purposes other than by taking up employment or to establish his business in the place visited."
Long private residential leases cannot have a duration of less than 1 year. This means that if the Housing Authority receives a contract of 8 months, for example, it will automatically be considered to be a contract for 1 year.
Link to Housing Authority approved long let residential contract.Short let residential contracts are only possible in the following circumstances, for which proof has to be provided:
If no evidence is provided, then the contract will be deemed to be a long let residential contract.
The 2020 Residential Leases Act defines the letting of shared residential space as "the letting of any separate space in an apartment or building, with shared amenities, such as kitchen and bathroom facilities."
If the landlord does not want to renew the contract then, whatever the length of the contract, they must give a minimum of 3 months' notice of this to the tenant by registered mail before the end of the contract.
The notice is effective from the date of sending the registered letter. Keep the proof of posting slip safe, just in case there is a dispute about the notice. If they do not give 3 months’ notice, then the contract is automatically renewed for another year on the same terms as the original contract.
Tenants can withdraw with no penalty from a long private residential lease:
If the tenant withdraws from a long private residential contract before the lapse of the di fermo periods specified above, then the landlord may retain an amount not exceeding 1 month's rent from the deposit left by the tenant.
The landlord may choose to take legal action against the tenant for any other outstanding amount. However, if the landlord replaces the tenant in the remaining di fermo period of the original contract, they will lose the court case - landlords cannot be in receipt of two rents at the same time.
While the landlord must give at least 3 months' notice of their intention to renew the lease or not, the tenant must give the following notice by registered mail:
So, for example, if the tenant wants to withdraw from the contract 6 months into the contract, then the tenant will have to give 1 month's notice by registered mail at five months into the contract.
It is important that both landlords and tenants give the required notice by registered mail. No other method of giving notice is legally binding. Both landlord and tenant need to keep the proof of posting slip safe, in case of any dispute about the notice.
These are the important features of a short let contract when it comes to withdrawal:
Is your contract registered? The landlord has to register the contract within 30 days of signing.
If it is registered, you should have received an email with the reference number, address, landlord and tenant/s names and duration of contract. The reference number should contain 2 letters and 6 numbers.
If not,
If you require any assistance or advice, contact us here.
The landlord has to provide a receipt unless your payment method directly indicates that payment was for rent. For example, it is described as such on a bank statement.
Are you leaving the rental property soon?
Are you concerned that your landlord will unjustifiably keep your deposit?
Has your landlord unjustifiably kept your deposit?
Below is some essential information that you may find useful:
In order to be able to file a dispute to recover your deposit, your contract must have been registered. Check the contract registration section for more information.
If you are still residing in the property, we suggest that you:
If you have already left:
There are two residential tariffs - the residential tariff and the domestic tariff. The residential tariff is for EVERY person - tenant or homeowner - living in their primary residence. The word 'domestic' in domestic tariff is misleading. Please be aware that this is the more expensive default tariff and that it is designed for occasionally used or empty secondary residences. The only way you can change the domestic tariff to the residential tariff is via Arms Form H. To find out whether you are on the correct residential tariff with all occupants registered on the Arms bill please look at the top right hand corner of the official Arms bill.
Below is a summary of the features of the Residential and Domestic tariffs:
Domestic tariff | Residential tariff | ||||||||||||||||||||||||
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For occasionally used or empty second properties | For your primary residence | ||||||||||||||||||||||||
Default utility tariff | To access this tariff everyone (both homeowners and tenants) must complete Arms Form H | ||||||||||||||||||||||||
Very expensive | Includes allowances per person per year of cheaper units of electricity and water | ||||||||||||||||||||||||
No eco reduction | Eco reduction if electricity consumption < 17500 units of electricity per person per year | ||||||||||||||||||||||||
Sliding scale of electricity unit cost is more
expensive than on residential tariff:
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Sliding scale of electricity unit cost is cheaper
than on domestic tariff:
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First 33 cubic metres of water are billed at €2.19 per cubic metre. Any consumption of water above 33 cubic metres is billed at €5.14 per cubic metre. No consideration whatsoever is given to the number of occupants of the property. |
Water is billed at €1.40 per cubic metre if consumption is less than 33 cubic metres of water per person per year. Any consumption of water > 33 cubic metres of water per person per year is billed at €5.14 per cubic metre. |
Arms Form H, Change in number of persons declaration, is very important because it is the only way for a household to be billed for their utilities on the correct residential tariff for people living in their primary residence. It is necessary for Arms Ltd to know the number of people resident in the property because this will determine how many allowances of cheaper units of water and electricity apply.
For example, if 4 persons are registered on the Arms bill via Section B of Arms Form H, then this household is allowed:
If, on the other hand, the Arms bill is on the default domestic tariff, with zero persons registered on the Arms bill,
If a tenant wants to be a joint account holder of the Arms bill with the landlord, a deposit of €466 and a non refundable fee of €50 are payable. Arms Form F2, Temporary Recognition of Tenant in Rented Premises, will need to be completed. As joint account holder, the tenant will then be able to complete Arms Form H to ensure that they are on the correct Arms tariff for people living in their primary residence. The union does not see any advantage for tenants being an account holder as there are no fee or deposit payable if the landlord completes Arms Form H on behalf of their tenants.
Moreover, the Residential Leases Act is very clear that the landlord will be liable for any overcharge incurred by the tenant if Form H is not completed.
If the landlord is a professional landlord, then the rental property will have official Arms meters on which official Arms bills are issued. Below is a photograph of what an official Arms bill looks like. Please note that the Arms bill is 2 pages long. Both pages are important and give you essential information of your consumption, its cost and other important details such as the address and official meter numbers which you could cross reference with your meters.
Payment should only be made on production of an official Arms bill.
Article 17 (4) of the Residential Leases Act stipulates that "the tenant shall not be bound to pay the utility services until he is provided with a copy of the bill".
Please note the official Arms bill in above photos.
Do not accept an Arms online calculation. The Arms online calculator itself has a lengthy disclaimer which states the following:
"The Calculator is a self help tool intended for illustrative purposes only. ARMS Ltd neither guarantees the accuracy of the calculation nor gives warranty or representation of any kind in any circumstance. In case of any discrepancy between an actual bill and that calculated by this tool, the amount indicated on your bill prevails. ARMS Ltd shall not entertain any claims relating to errors, omissions or other inaccuracies resulting from the use of the Calculator, or from the reliance on information procured therefrom, and in no event shall ARMS Ltd be liable, under any legal theory, for any direct, indirect, special incidental consequential or any other claims arising out of the use of the Calculator. By using the Calculator, users acknowledge and accept this disclaimer."Below are some of the reasons as to why you should only pay when provided with a copy of the Arms bill:
Avoid rental properties with submeters or coin meters. Make this one of your criteria when you look for a rental property. Below is a photo of what an official Arms meter should look like.
If you do reside in a rental property with a submeter or a coin meter, understand that official Arms bills are not issued on submeters or coin meters.
Most landlords provide a copy of the ARMS online calculation instead. However, this often leads to the overcharging of tenants in many different ways, as described in the preceding section, The importance of the official Arms bill.
For example, Article 7(f) of the Residential Leases Act shows that it is forbidden for the landlord to charge the tenant for anything other than the "consumption of water, electricity or other utility service". The service charges on an online calculation constitute an 'other utility service' and is not the tenant's liability. These service charges arise from the landlord's official meter and will be listed on the landlord's official Arms bill.
We suggest that, in this situation, tenants:
The clauses below are forbidden clauses and are therefore without effect. You can completely ignore them:
Rent increases up to a maximum of 5% per year are allowed as long as this is stipulated in the rental contract. Once the contract comes to an end, the landlord can increase the rent by however much they want.
Please note that, before the end of the contract, the landlord must give 3 months' notice by registered mail of their intention not to renew the contract. If they do not do this, and/or do not do this by registered mail, then the contract is automatically renewed on the same terms as the original contract (ie. at the same rent) for another year.
The number of residents who may occupy the rental property at the same time is subject to the following limits depending on the number of bedrooms and bathrooms found within the property:
Permitted residents | Minimum Number of Bedrooms | Minimum Number of Bathrooms |
---|---|---|
2 | 1 | 1 |
4 | 2 | 1 |
6 | 3 | 1 |
8 | 4 | 2 |
10 | 5 | 2 |