The Private Residential Leases Act (PRLA) was introduced back in 2020 with the goal of ensuring, among other elements, that this sector is rendered more secure and transparent. Four years on, this Legal Study delves deep into the compliance aspect of the Private Residential Rental Sector.
This analysis bridges two different aspects – first by examining the enforcement action conducted by the Housing Authority to ascertain compliance with the lessor’s duty to register the agreement, and then by evaluating how lessors and lessees have been fulfilling their duties towards each other, in an exercise that can be considered a continuation of the analysis contained in the Housing Authority’s 2022 Residential Rental Study.
This also includes the Adjudicating Panel function carried out by the Housing Authority since 2020.
The key highlights of the Legal Study include the following:
- As of September 2023, there were 886 notifications issued to non-compliant landlords, 78 of which led to a criminal complaint to the Police.
- There were 22 decisions delivered by the Court of Magistrates (Criminal Judicature), with 3 decisions appealed before the Court of Appeal (Inferior Jurisdiction) over this period.
- Although the fine established in the Private Residential Leases Act can range from €2,500 to €10,000, in 12 out of the 15 cases in which the accused was found guilty, the Court imposed the minimum fine permissible by law.
- The analysis of the Adjudicating Panel decisions in 2022 and 2023 highlights the importance of the inventory in attesting to the true state of the property.
- The decisions by the Adjudicating Panel indicate that claims to damages following the termination of the lease, or overcharging of utilities, need to be backed by adequate proof, consisting not only of photographic evidence but also of documents, such as quotes or invoices, capable of quantifying such damage. The same applies to tenants claiming overcharging of utility bills.
- In general, the study indicates that there is a strong case for the competence of the Panel to be extended to, at least, cases of rent and utility arrears and expenses related to the common parts.
This legal study was carried out by Dr Kurt Xerri, resident academic within the Department of Civil Law at the Faculty of Laws of the University of Malta; Dr Bryony Balzia Bartolo, manager of the Legal Office of the Housing Authority; and Dr Stefan Cutjar, an associate at Camilleri Preziosi Advocates and former Policy Consultant to the Ministry for Social and Affordable Accommodation.
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