Renting Residential or Commercial property in Malta with Malta luxury homes is made easy and straight forward as we will guide you through the whole process of the property search and rental transaction.
Renting Residential Property – The 4 Step Process
1. All clients looking to rent property in Malta should know that “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 shipping companies to ship your furniture over to Malta. Having said that, some clients searching to rent properties for longer periods of 3 to 5 years do opt to search for unfurnished properties, whilst others who decide to make Malta their permanent address take the plunge and purchase property.
2. Once you get acquainted with the different locations in Malta and have choose your desired location, type of property, and budget, the rental agent can compile a list of available properties that suit your criteria and set up appointments to view all properties as the rental process in Malta is fairly fast with more demand than supply in certain popular locations like Sliema – St. Julians – Gzira and Swieqi.
3. Having found a property and agreed to all the terms (length of contract, rental price, rent payment terms) usually a holding deposit is paid to the rental agent on behalf of the landlord to block the property till the rental contract is drafted, reviewed and signed.
4. Contracting Signing – The parties usually meet at the property being rented, to read through the contract and check the inventory list, the utility readings are taken and added to the contract. The Rent is paid to the landlord and agency fees are duly paid by both parties (Landlord & Client). The keys are handed over to the new 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.
General rules about renting Residential Property
1. Contract Registration – All rental contracts must be registered with the Housing Authority to be deemed legal. It is a simple process where the documents are uploaded online, in most cases by the landlord/property owner (copy of contract, inventory list, and identity documents of all parties, and rental declaration form). For more information and clarification visit the Housing Authority’s website. www.rentregistration.gov.mt
2. Contract Length Term – Rental contracts must be for a minimum period of 1 year and more and can be renewable as per agreement between the parties or renewed automatically if not terminated on the online portal. Renting luxury properties like villas and lifestyle apartments (SDA) landlords ask for a minimum contract term of 3 to 5 years with a di fermo period (tenant must stay at least 2 years).
3. Rent Payment – Rent is usually payable monthly in advance, but it can also be paid quarterly, half yearly or even yearly in advance according to the agreement reached with the landlord. In luxury properties like Lifestyle apartments (SDA) or Villas with pool the rent is payable quarterly in advance and even yearly in advance.
4. Cleaning & Property Maintenance – As in all contracts Keeping the apartment clean is mandatory. Some landlords insist to have their own cleaners sent weekly to have the apartment cleaned at the tenants’ cost. Most tenants prefer to do their own thing or hire commercial companies to the cleaning.
Generally, all normal ordinary property maintenance (changing a bulb, electrician / plumber/ technician call) is an expense of the tenant, and the landlord will pay for any extraordinary cost like changing the water heater, water pump or appliance if not damaged by the tenant. Having said that in the luxury properties like villas and houses with gardens & pools, the landlord would ask for a contribution towards the gardener and general upkeep of the pool and in some cases with the larger Lifestyle Apartment Developments (SDA) like Portomaso – Tigne Point – Fort Cambridge the landlords also ask for the payment of the yearly condominium charges to be paid by the tenant.
5. Breaking the contract- Tenants can move out of the property any time during the contract period but must give a 1 months’ notice in writing to the landlord, and likewise landlords can opt not to extend the contract by giving a 3 months’ notice in writing to the tenant.
6. Security Deposit – One months’ rent is also paid on contract as a security deposit which is refunded on expiry of the contract once the property is inspected and given back in clean and working order with no breakages. However, the deposit may be lost in favour of the landlord if the tenant decides to leave the property and moves out before 6 months on a 1-year contract and before 9 months on 2- year contract.
7. Pets – Most landlords accept pets as long as they do not cause any nuisance to the neighbours especially if the property rented is an apartment within a block or complex. Most landlords usually ask for an extra deposit of 1 months’ s rent or oblige the tenant to buy pet insurance to cover for any possible damage caused to the property.
8. Agency Fees – In Malta Agency fees are split and paid by both the landlord and client. Each pay 50% of one months’ rent plus 18 % Vat and the Agency will give an official vatable receipt.
9. Rental Income tax & payment – All rental income in Malta is subject to a final 15 % withholding tax calculated on the gross yearly income which is submitted annually online. The same tax applies whether the property owner is an individual or company.
Leasing Commercial Property
1. Leasing commercial properties is slightly different as there is no general rule that all commercial properties are leased furnished or fully equipped. Newly built properties usually rent unfurnished and not equipped, and in some case even in shell form, but again it all depends on the type of commercial property being rented and the agreement made with the landlord/property owner. In most cases the property being offered for lease would usually already be operated by a current tenant who is vacating the property, so the new client can get a better idea of the property. It is important to note that all commercial property has a permit according to the property type.
2. Contracts – In commercial leasing, all contracts are usually signed for a maximum period of 14 years with an option to extend further. These long contracts are drafted by lawyers and sometimes signed by notaries if the lease period is fairly long with an automatic extension 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 lease contract and are protected by the law.
3. Rent – Rent Payments & Security – Unlike with residential properties most commercial properties are either offices, catering establishments, retail outlets / show rooms or Boutique Hotels. Since the rents are significant amounts, they are usually paid 6 months or 1 year in advance. In some case where the landlord is a company vat is also charged on top of the rent amount. Most landlords would also ask for an additional amount of money or request a bank guarantee as a security that rent will be paid. In some cases where the property was already tenanted and is being leased fully equipped and operational a premium is asked on top of the amount of daily rent. This usually applies in the most part with retail outlets and catering establishments which is not firm and can be discounted down during the negotiations.
4. Agency Fees – These are collected from both the landlord and tenant. It is normal practice that both parties (landlord & tenant) pay 10% of 1 year’s rent plus 18% VAT unless agreed differently between the parties, as on substantial rents the commission percentage charged might be discounted by the agent, and, if there is a Premium (key money) also being paid to the landlord, the landlord pays a further 5% plus 18% VAT of the premium amount.
5. Taxes on Rental Income – Like with residential properties all rental income collected is taxed at a final withholding tax 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.
We are looking to Rent / List our property For Rent
By providing Malta Luxury Homes your contact information, you acknowledge and agree to our private policy and consent to receiving marketing communications through calls, texts and emails.
Links
View Luxury Properties For Rent in Sliema/St.Julians here
View Lifestyle (SDA) Properties For Rent here
View Villas and Properties with pool For Rent here
View Offices For Rent here
View B&B/Hotels For Rent here
View Retail/Catering For Rent here
Looking for a specific property contact us here
