Amendments to rental property law to take effect on 1 September

The amendments to the Private Residential Leases Act and 2024 Regulations on the Limitation on the Number of Residents in Rented Homes, will come into effect next Sunday. 

In a statement, the Housing Ministry said that the changes are aimed at providing stability and dignity for both landlords and tenants.

Under the new regulations, the number of residents permitted in a rented home will be determined by the landlord's declaration during the contract registration process. The law specifies that for a residence with two bedrooms and at least one bathroom, only four residents are allowed. This limit increases to six residents if the home has three bedrooms. 

These rules do not apply to family households. Additionally, leases that began before the new amendments take effect will continue to be governed by the laws in place at the time the lease started. However, all leases in force by August 31, 2025, must comply with the updated laws, regardless of when they began.

Housing minister Roderick Galdes emphasised that the government is committed to making necessary decisions, particularly regarding overcrowding in homes that are rented out to multiple tenants. 

Galdes stressed that abuse of the new regulations would not be tolerated, and the government would be reinforcing the enforcement section to ensure compliance.

The Housing Authority will have the authority to administer administrative penalties for violations, with fines up to €10,000 for non-compliance. Offenders who fail to pay fines within 21 days may face legal proceedings in the Criminal Court.

Housing Authority CEO Matthew Zerafa stated that these amendments represent a dynamic response to the evolving realities in Malta's housing sector.