Tackling overcrowding in the renting industry | Matthew Attard

As part of the proposals amending the rental sector, Housing Minister Roderick Galdes issued guidelines on the maximum number of occupants in every household.

The government proposes that the amount of people allowed to share an apartment will not exceed two tenants per bedroom. For residences that have more than three bedrooms, an additional bathroom will also be required in order to house more than six people.

Before I delve into the proposed standards, it is imperative to understand the Maltese context.

The Private Residential Leases Act, which was introduced in 2020, was a leap forward for regulating the rental industry. Prior to this, the rental sector was unregulated with landlords informing tenants that they are not renewing the contract just days before the expiry.

The current law outlines that both tenants and landlords have rights and duties. For example, if a tenant or a landlord wishes to terminate a contract, they must give prior notice so that the tenant can find another place to live, or the landlord can find another tenant.

Contracts must be registered and are checked for several essential clauses such as the address, the amount of the rent, the amount of deposit and the start and end date. These are basic regulations that were not even in place prior to 2020.

Another successful aspect of the law was the introduction of an arbitration panel, which has jurisdiction on disputes under €5,000 between tenants and landlords.

While much needs to be done from our end as a union to inform and educate tenants on their rights and how to file a proper dispute, the panel has been vital to ensure that tenants get their deposit back and are not overcharged on their ARMS bills. It has also been helpful for landlords in cases where tenants damage the property.

However, despite the successful aspects of the law, there is still abuse in the sector.

Abuse which is led by some landlords who overcrowd their properties to maximise profits, at the expense of the safety and sanitation of their tenants and their neighbours.

Although there are laws, the remit given to the Housing Authority had to expand. Introducing these clear standards will improve not only the wellbeing of tenants but also of our neighbourhoods and communities.

Despite introducing standards, the affordability and stability of the sector still need to be addressed. Both landlords and tenants have mentioned that they want more to be done to stabilise the sector.

However, there has been disagreement on how to achieve this. We are sure that in the coming years, as we sit and discuss further with both the ministry and landlords, we will come to an agreement to ensure longer contracts become the norm in the sector.

However, this disagreement cannot stop us from introducing the better standards being proposed by the government.

The discussion on possible amendments to the di fermo period, the possibility to mandate and incentivise longer contracts are important and must be held.

But in the meantime, all stakeholders agree that we must desperately stop overcrowding and so these amendments, should pass immediately.

Introducing clear and enforceable standards in the rental sector is welcome, particularly by the most vulnerable in society who are often pushed into horrendous conditions.

There is still much more that needs to be done in the sector to bring it up to par with European standards, but we’re sure further discussions with all stakeholders, coupled up with scientific studies of the sector, will continue to reap positive changes to the industry which will not only benefit tenants but also the economy in general.

Removing overcrowding is the first step towards introducing standards in the renting industry.