Housing Minister Roderick Galdes has announced that the legislative amendments made to the Private Residential Leases Act will come into force tomorrow, on 1 September 2024. This includes the limitation placed on the number of non-familial residents that can occupy a single rented dwelling.

Minister Galdes said that these amendments will offer peace of mind to both owners and tenants alike and are centred around principles of dignity and stability – two principles that the government has embraced, he said.

The Minister for Social and Affordable Accommodation explained that it was this government, back in 2020, that became the first Maltese government to take a strong position in this sector and introduce a law to regulate private residential rents.

He described that before these legislative changes come into force tomorrow, the government had previously studied the sector, and listened to the experiences of owners and tenants, as well as having continuous dialogue with social partners.

“This Government will not hesitate to take the necessary decisions. Therefore, we will be strict when it comes to overcrowding in houses used by some (shared) tenants in private residential rentals,” the Minister stated.

“With this law, the Government will regulate this situation by determining the number of residents who can live in the same house under lease, according to the owner’s declaration during the registration of the contract,” Minister Galdes added.

Minister Roderick Galdes reminded that these new laws do not apply to families.

He also outlined the conditions of this resident cap for private leases. Galdes described that a residence with two bedrooms and a minimum of a single bathroom can only house a maximum of four residents. For a dwelling with three bedrooms, the number of allowed residents increases by two, and is limited to six. He also remarked that for exceptional cases where houses have more than three bedrooms, “the law is also clear in this regard.”

Leases that began 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. Meanwhile, leases that remain in force until this time next year, i.e., 31 August 2025, must be in compliance with these laws, irrespective of the lease’s start date.

This law will also be simplifying the processes related to the expressed renewal, the replacement of the tenant, the increase in tenants, and the consensual terminations between the owner and the tenant.

Minister Galdes stated clearly that no abuse will be tolerated.

“Through these amendments, we will continue to strengthen the Enforcement Section in order to reduce abuses,” he said. The Minister also stated that in case of abuse, “legal procedures will be followed.”

In regard to enforcement, the Housing Authority shall be given the power to administer administrative penalties in cases where a person is found guilty of such a crime. If a person fails to pay the administrative penalty brought against them in 21 days, that person will be brought to the Criminal Court. If found guilty, they can be fined up to a maximum of €10,000.

Minister Galdes appealed to the public to co-operate with these legal changes, and if a violation in this law is noted, one should file a report on the Housing Authority’s website: https://housingauthority.gov.mt/.

He also emphasised that he will be strengthening the register of owners and tenants who do not honour the decision made by the Arbitration Panel or Court. Through this register, owners and tenants who are about to commence contact for a private residential lease will have the ability to check whether the person they are entering this agreement with is on this list or not.

The Chief Executive of the Housing Authority, Matthew Zerafa, stated that “these amendments are confirmation of the 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.”