Looking to rent an apartment in Malta but not sure what the rules are? Let us brief you!
The Private Residential Leases Act is applicable to leases entered into or renewed after the entry into force of the Act. Notably, it does not apply to leases granted after 1 June 1995, which were still in force on 1 January 2020. Additionally, the Act is non-applicable to:
- Houses belonging to the Government of Malta
- Flats let out to any tourist, exclusively for tourism purposes
- Flats that are not let out for residential purposes
- Flats let out before 1 June 1995
- Contracts of emphyteusis or sub-emphyteusis which have been or are about to be converted into leases by law
The PRL (Private Residential Act) regulates the three types of possible leases, which are:
- Long private residential leases (LPRL)
- Short private residential leases (SPRL)
- The letting of shared residential spaces (LSRS)
Types of Private Residential Leases
Long Private Residential Leases (LPRL)
The Long Private Residential Leases must have a term of at least one year. If the lessor does not intend to renew the lease, the lessee must be informed three (3) months prior to the termination of the contract by means of a registered letter. However, if the lessor fails to notify the lessee within the established period, the lease is renewed automatically for a year.
Firstly, the first six months of the LPRL are mandatory for the lessee. Following the obligatory six months, the lessee may be released from the contract by giving at least one (1) month notice to the lessor by means of a registered letter.
Secondly, in the case of a two-year contract of lease, the first nine months (9) are mandatory for the lessee, following which, the lessee may be released from the contract by giving at least two (2) months’ notice to the lessor by means of a registered letter.
Moreover, if the lessor does not intend to renew the lease, the lessee must be informed three (3) months prior to the termination of the contract by means of a registered letter. If the lessor fails to notify the lessee within the established period, the lease is renewed automatically for a year.
Lastly, if the lease is for three years or longer, the first twelve months (12) are mandatory for the lessee. Following the obligatory twelve months, the lessee may be released from the contract by giving at least three (3) months’ notice to the lessor by means of a registered letter. Essentially, if the lessor does not intend to renew the lease, the lessee must be informed three (3) months prior to the termination of the contract by means of a registered letter. If the lessor fails to notify the lessee within the established period, the lease is renewed automatically for a year.
Short Private Residential Lease (SPRL)
- Non-resident workers who are employed for less than six months or only to complete a specific task within a maximum period of six months.
- Non-resident students who are enrolled in courses in Malta of a duration less than six months.
- Residents who need to rent an alternative primary residence for less than six months.
- Non-residents who need to rent a flat for less than six months, provided that they would not be seeking to establish themselves as long-term residents in Malta.
Fundamentally, the lessee may terminate an SPRL after one month from the commencement of the term as long as he gives one week’s prior written notice to the landlord using a registered letter. In effect, the landlord cannot impose a penalty or obtain any form of compensation from the lessee for terminating an SPRL by the above.
Letting of a Shared Residential Space
Letting of a Shared Residential Space are contract of lease for separate space in an apartment or building, with shared amenities, such as bathroom facilities and kitchen, for six months. Effectively, a lessee may terminate an LSRS anytime by giving one week’s prior written notice to the landlord using a registered letter. Again, the landlord cannot impose any form of penalty or obtain compensation.
Importantly, an LSRS cannot be renewed once its term is up. In fact, no formality is required upon the term’s expiry. The LSRS simply expires with no roll-over continuation rights.
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