Issue link: https://maltatoday.uberflip.com/i/1269236
10 maltatoday | WEDNESDAY • 15 JULY 2020 OPINION Malta's rental market, as many are un- doubtedly aware, forms a significantly large part of our country's housing sector. However, despite the crucial role which this sector holds in our national economy, as well as in the lives of so many of our is- lands' residents, Malta's rental sector has been routinely ignored for years on end, with grave consequences for all those whose lives are tied to this sphere. Al- though our rental industry has grown con- siderably over the last few decades, it has until recently continued to remain prac- tically un-regularised, to the detriment of both the lessor and the lessee. Neither par- ty was aware of what their rights and obli- gations were, or who to turn to in order to settle minor disputes, and everyone ended up suffering as a result. Now however, thanks to the rent reforms which this government implemented at the beginning of this year, these issues have become a thing of the past. For the first time ever, we have introduced a high degree of professionalism to this sector, which until now had been sorely lacking. Under the terms of the new law, all contracts have to be registered with the Housing Authority, along with a detailed inventory and a declaration of the security deposit. Contracts are now also required to have a notice period, while any increase in rent price must be agreed beforehand, and cannot be more than a 5% increase over the rate of the previous year. More- over, there is now a minimum rental pe- riod of one year for long lets, while longer rental periods of two years or more will be rewarded with tax credits. These new reforms are all helping to make our rental market more efficient, secure, and transparent for both property owners, as well as those families and in- dividuals who rent. We have finally man- aged to strike a perfect balance between the rights and obligations of lessors and lessees, resulting in a rental market that is safer for both. Lessees know that they will be protected from abusive landlords, while property owners can be assured that their investment will also be protected thanks to the registration of contracts and invento- ries. Moreover, we have made certain to en- sure that the local rental market continues to remain as flexible and unhindered as it has always been, even while it is regulated in a professional and efficient manner. Af- ter all, the Housing Authority is not here to act as a watchdog, but rather, to facilitate the market, and make sure that it is safe for all. The only obstacles we are putting forward will be in the path of those who wish to abuse or exploit others. These benefits, which are now being en- joyed by thousands of families, are helping to make our nation's rental market a more enviable prospect than ever before. More importantly, the stakeholders themselves have understood the advantages which this reform is offering, which is why this initiative has been such a success. In the last six months alone, 15,000 contracts were registered with the Housing Author- ity, and more are being registered at an average rate of 150 new contract registra- tions per day. We have also tackled the issue of how minor disputes between property owners and occupants such as in the case of dis- agreements over deposits, property main- tenance, or bills, are to be handled. Previ- ously, the only way in which such disputes could be settled was by going to court, with all the high costs and lengthy bureaucratic processes that this entails. Now, however, we have cut through all the red tape and launched an Adjudicating Panel for Pri- vate Residential Leases within the Housing Authority itself, so that minor disputes of not more than €5000 can be handled there. This panel is also committed to providing a ruling within five working days from the submission of the last relevant documents. In this way, we will be providing peace of mind to all those who are invested in the rental market that there rights will be pro- tected in a thorough and efficient manner, without the need for unnecessary costs or delays. Ultimately, as these reforms have shown, this government is committed to continue working on strengthening this sector and providing an efficient and just framework for all those who wish to involve them- selves within it, either as lessors or as les- sees. The law that we introduced at the beginning of this year has helped to bring about a more attractive and secure rental market, to the benefit of all, and we are determined to continue with our work so that this sector can truly become the pro- fessional industry that it has the potential to be, both for our sake, and for the good of future generations. Bringing professionalism to our rental sector Roderick Galdes Roderick Galdes is Minister for Social Housing The only obstacles we are putting forward will be in the path of those who wish to abuse or exploit others