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2 maltatoday | SUNDAY • 21 SEPTEMBER 2025 NEWS CONTINUES FROM PAGE 1 The real estate agent, whose name is not being reproduced, explained that part of the rea- son could be that some Maltese people are simply bad tenants who don't pay rent, which then makes it difficult for the land- lord to kick them out. But an- other reason why non-Maltese tenants were preferred, ac- cording to the agent, is the fact that "landlords can do what they please with foreigners." The resistance to rent to Mal- tese tenants also has historical roots that go back to the post- war rental laws that made it impossible for landlords to remove tenants. Those laws were intended to offer hous- ing protection at a time when the island was still recover- ing from wartime destruction. However, the legal regime re- mained in place for decades, with landlords unable to refuse the renewal of lease agree- ments, leaving them stuck with tenants for one generation af- ter another. The regime also protected tenants since rents could not increase to reflect market value. A legal amendment in 2009 set a higher cap for rental in- creases but failed to address the issue and the legacy of the post-war rental regime contin- ued to be felt. Landlords were forced to go to court and suc- cessfully won constitutional cases in an attempt to seek re- dress. It was only in 2021 that the government enacted new laws that set conditions for pre-1995 protected rents that allowed landlords to receive a fair rental return while ensur- ing that current tenants remain protected. The government al- so introduced a mechanism by which it stepped in to foot the difference in rent that tenants have to pay. But while this legacy is part- ly to blame for the reluctance of some landlords to rent to Maltese tenants, there is also a question of judicial efficiency. Inefficient justice system Alliance Real Estate's Chief Letting Officer Paul Mifsud told MaltaToday that the re- luctance also stems from inef- ficiencies in the justice system. He explained that Maltese tenants who are in breach of their contract, whether by re- fusing to pay rent, causing damage to the property, or committing other violations, force owners to initiate lengthy judicial proceedings. "During such proceedings, landlords are unable to rent out, use, sell, or otherwise ex- ercise any of the full rights of ownership over the proper- ty until the judicial process is concluded. Apart from this, they are liable to cover court expenses and, in most cases, a large portion of the damages, unpaid bills, and other related costs," Mifsud said. On the other hand, he said that when landlords face abu- sive foreign tenants, they are more likely to vacate the prop- erty since Malta is not their main country of residence and they would not want to jeop- ardise their legal status when faced with court action for their wrongdoing. While this still results in fi- nancial loss, it allows landlords Maltese tenants share frustration It is a story shared by other Maltese tenants, who spoke to us on condition of anonymity. Some were even told outright by potential landlords that they do not accept Maltese tenants. Only 10% of tenants are Maltese A Housing Authority study last year found that only 10% of tenants living in rented accommodation are Maltese. This tallies with the high prevalence of home-owner- ship. The study also showed that the average age of the tenant population stood at around 37 years with nine out of 10 tenants active in the labour market. The study found that 97% of landlords are Maltese with those aged 50 and over managing two-thirds of resi- dential rental stock. The study also found that the median gross rental in- come for all landlords stood at €12,000. Four out of 10 landlords owned only one property and renting was a part-time endeavour for four out of five landlords. Both landlords and ten- ants preferred a one-year contract duration, however, around a third of respond- ents favoured longer-term contracts—two and three- year contracts. Another key finding of the study was that tenants were less knowledgeable about their legal rights than land- lords. The study found that awareness about the Resi- dential Leases Act was mixed but in general higher among landlords.