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Renting as a Housing Alternative - White Paper Summary


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16-10-2018 - By: Fabio Zuccaro, COO

The White Paper on Renting as a Housing Alternative has just been published. We have been talking about the causes and effects of the rental phenomenon in Malta for a long time, so here are the salient points and recommendations from the paper that may be of most interest. The White Paper proposes…

? That the Private Rented Sector recommendations should only be applied to primary residential purpose, excluding commercial, secondary residential use, short and tourist lets

? The promotion of minimum contractual terms with periodic rent increases clearly stated in the agreement

? That the Government considers capping the increase of rental prices

? Optimisation of the rent subsidy scheme

? Removal of a six-month lease, promoting longer terms

? A minimum compulsory duration

? Fiscally incentivising contracts longer than one year

? Promoting the practice of giving notice of termination by both tenant and landlord

? Referring to the Property Price Index (PPI) to regularise increases in rental prices

? Allowing the landlord, under specified conditions, to withdraw from a rental agreement

? Establishing an Agency for Private Residential Leases to handle all new practices and enforcements

? Blacklisting of landlords and tenants

? Registration of rental contracts

? Shifting the subsidy grants system means-testing calculation, increasing the potential grant amount

? The promotion of bank transfers over cash and cheque payments

? Ensuring the tenants’ guarantee of access to water and electricity services

? Diversifying the housing market by promoting more affordable housing

? The promotion of schemes facilitating the rehabilitation of vacant dwellings for rent

? Establishing Real Estate Investment Trusts with the aim to invest in income-generating real estate assets

? Clearly identifying minimum habitability standards for rented properties

? Further discussions and studies into international practices and standards of real estate agents.

To read the White Paper in full, please follow this link here

QuickLets is committed to supporting the betterment of the rental market for both tenants as well as landlords. QuickLets will play an active role, through the MDA Estate Agent Section, in advising the Government on the White Paper.

Should you need any support in understanding the proposed recommendation, please feel free to get in touch with us at QuickLets on whitepaper@quicklets.com.mt www.quicklets.com.mt