Developers oppose new rental contract form, want real estate agents to verify rental contracts

The Malta Development Association (MDA) has come out against recent changes in the residence permit renewal process, stating that it wants real estate agents to replace legal professionals as verifiers of rental contracts.

The MDA was responding to the release of a new Lease Agreement Attestation Form which has been agreed upon by Identità, the Notarial Council and Chamber of Advocates.

In a statement, the MDA noted that the Lease Agreement Attestation Form, which will need to be signed by a legal professional, adds a new layer of bureaucracy to an already-bureaucratic process. 

“The new obligation of the Attestation Form means that landlords need to sign every rental contract with third country nationals in the presence of a lawyer, notary or legal procurator,” the MDA bemoaned. 

The development lobby said that other measures could have been taken to achieve the same result as the forms without the burden of bureaucracy. The MDA noted that during its meeting with Identità, it proposed requiring copies of ID cards which are verified by licensed professionals when signing rental contracts. 

“This step, together with the existing Housing Authority registration system brings about the same peace of mind to Identità,” the MDA said. 

The association also proposed having licensed real estate agents as part of the verification process for rental contracts, noting that such agents are in a position to confirm whether or not a property truly exists. “When one compares Identità’s measure with the MDA’s proposals, the MDA’s system is superior in every way and is cheaper, less bureaucratic and more efficient.”

The MDA concluded that property owners should not bear the consequences of the mistakes, abuse or failings of any entity. "The MDA expresses its disappointment that its proposals were rubbished, and appeals to government and the authorities to consult with the relevant stakeholders before implementing new procedures."

Chamber of SMEs says new form will not curb abuse

Similarly, the Chamber of SMEs also opposed the new form requirement for landlords and tenants, labelling it as "ineffective and bureaucratic."

While the lobby voiced its support for enhanced controls to prevent abuse and protect national interests and security, they believe this new requirement complicates the rental process.

"Instead of resolving long-standing inefficiencies and abuses that were allowed to occur in the past years, landlords and tenants are now being directly penalised for these systemic shortcomings."

The Chamber of SMEs highlighted its concern that the new form will not solve the problem it is intended to fix, "while placing an undue burden on landlords and tenants."

"The SME Chamber remains committed to working with authorities to find solutions that promote regulatory compliance without disproportionate burdens for those impacted by this measure."