Renting Residential or Commercial property in Malta with Malta luxury homes is easy as our rental team will guide you through the whole process.
As a general rule all residential properties are rented fully furnished so you do not have the added headache of sourcing furniture or dealing with removal and shipping companies to ship your furniture over to Malta. Having said that some tenants seeking to rent for longer periods of 3 to 5 years do opt to search for unfurnished properties.
Renting commercial properties is slightly different as there is no general rule that all commercial properties are rented furnished or fully equipped. Newly built properties usually rent unfurnished and not equipped, but again it all depends on the type of commercial property being rented and the arrangement made with the landlord.
Once the client has got a general idea of the preferred location, type of property and budget, the rental team will set up viewings of current available properties.
Having found the desired property and agreed to the terms and rental price, a holding deposit is paid to the real estate agency to block the property till the rental contract is drafted and signed.
Contracting Signing – The parties usually meet at the property being rented, to read through the contract and inventory list, take the utility readings which are added to the contract. Rent due is paid to the landlord and agency fees are duly paid by both parties.
The keys are handed over to the tenant and landlord fills in and signs the rental declaration form to be submitted along with the rental contract for registration with the Housing Authority.
1. All residential rental contracts have to be registered with the Housing Authority to be deemed legal. It is a simple process where the documents are registered online. (contract with inventory list attached). For more information and clarification visit the Housing Authority’s website. www.rentregistration.gov.mt
2. Length of duration of rental contracts have to be for a minimum period of 1 year and can be renewable as per agreement between the parties.
3. Rent is payable monthly but can also be paid quarterly, half yearly or even yearly in advance according to an agreement reached between the parties.
4. One month’s rent is also paid as a security deposit which is refundable at the end of the lease, terms and conditions apply.
5. Tenants wishing to rescind the contract need to give one month’s notice to the landlord and should they decide to leave prior to six months period they forfeit their deposit. Likewise the landlord needs to give 3 months notice to tenants if they want to terminate the contract.
Commercial Contracts
In commercial renting, all contracts are usually drafted by lawyers as they are more complex with certain set conditions and parameters added to enforce that both tenants and landlords observe all the conditions of the rental contract.
Fees
In Malta unless agreed differently between the parties, in residential rentals, agency fees are collected from both the landlord and tenant. Both the landlord and the tenant each pay the amount equivalent to a half of one month’s rent plus 18% Vat, and receipts are duly issued by the real estate agency to both parties.
However in commercial rentals, agency fees are paid differently. Both parties (landlord & tenant) pay 10% of 1 year’s rent plus 18% VAT and, if there is a Premium (key money) payable to the landlord, the landlord has to pay the agency 5% plus 18% VAT of the premium amount.
Taxes
In both residential and commercial rentals, the tax payable is a final withholding tax at the flat rate of 15% on the Gross rental income of the year which is payable to the Inland Revenue, by the owner of the property who is renting out the said property. This also applies if the beneficial owner of the property is a company, same tax rate applies.
Kindly contact us by email to learn more about how we can help you sell or rent your property and sign up for a free valuation of your property.
info@maltaluxuryhomes.com
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