Act XX of 2024 introduces significant amendments to the laws governing leases and private residential leases. These changes aim to clarify specific provisions of the law, further protect tenants and ensure the better habitability standards of dwelling houses.
Amendments to Pre-1995 Rent Laws
The first significant amendment pertains to the pre-1995 rent laws, specifically Article 1555A of the Civil Code, which deals with the non-use of leased property when a tenant is absent due to a stay in a healthcare facility, institution or nursing home. Previously, Article 1555A(2) stated that if the tenant was dependent on a healthcare institution, the lease would transfer to specified relatives mentioned in Article 1531F. These relatives included the lessee’s children, provided they had lived with the lessee for four out of the five years preceding June 1, 2008, and continued residing with the lessee. It also included siblings of the lessee who were forty-five or older and had lived with the lessee for the specified period, the lessee’s children under five years of age, or the lessee’s ascendants over forty-five years of age, all subject to means testing as per the Continuation of Tenancies (Means Testing Criteria) Regulations issued under Article 1622A of the Civil Code.
Act XX of 2024 removes the reference to Article 1531F. Now, when a lessee is admitted indefinitely to a healthcare facility, the provisions of Chapter 69 and Chapter 158 regarding the right to continue the lease upon the lessee’s death apply. Specifically, upon the lessee’s admission to a healthcare facility, the lease can continue with the spouse who has lived in the dwelling house for at least four years between June 1, 2003, and June 1, 2008, and continued living with the tenant until the admission date into a healthcare facility. The siblings of the tenant, who have continued the lease together with the tenant and had the right to inhabit the dwelling house for four out of the last five years prior to June 1, 2008, and continued living with the tenant until the admission date, are also entitled to continue the lease. However, no person not recognised as a tenant by the coming into force of Act XXVI of 2021 is entitled to continue the lease. Additionally, individuals who lived in the dwelling house for four out of the last five years before June 1, 2008, and continued living there until the tenant’s admission to a healthcare facility, may continue occupying the dwelling house for five years from the date of admission. After this period, they must vacate the dwelling house.
Harmonisation of Notice Periods
Act XX of 2024 harmonises the notice period for terminating leases with that of the Private Residential Leases Act. The new requirement mandates a three-month notice period before lease termination, which must be sent to the lessee by registered mail.
Amendments to the Private Residential Leases Act
Several substantial amendments have been made to the Private Residential Leases Act. Article 2 of the Residential Leases Act has been amended to include definitions for “Building” or “premises” and “Dwelling house.” “Building” or “premises” now means “a house or other building, or part thereof, which is used or may be used for residential purposes in accordance with the provisions of the relevant laws.” “Dwelling house” means “a building or part of a building separately let, which includes any land or garden forming an integral part, or enclosed within the precincts of such dwelling house, but does not include any movable structure, vessel, or vehicle.” It is thus being clarified that the land or garden forming part of the dwelling house is regulated by the Private Residential Leases Act.
The act clarifies that the term “lease” also includes “sublease.” A new proviso added to the definition of “residence” states that when a tenement is leased by a company to accommodate its employees, and the employees pay consideration to the company, the relationship is deemed to be of subletting.
Extended Registration Period
The time period for registering rental agreements is extended from 10 days to 30 days. Despite this extension, the legislator makes it clear that retrospective registration does not exempt the lessor from fines or criminal proceedings as established by the Private Residential Leases Act.
Protecting the habitability of Dwelling Houses.
Lessors must now specify the number of residents in the dwelling house, and the Minister is empowered to make regulations providing minimum standards of habitability and limiting the number of residents who may occupy the dwelling house simultaneously. Notwithstanding the authorisation by the Housing Authority of a rental agreement, this does not constitute a certificate of habitability for the leased tenement. If the dwelling house conditions contravene the standards set in the new regulations, the lessor will face penalties.
New Inventory Requirements
For successful registration of private residential leases, an inventory must be drawn up in the form of documentary evidence signed by all parties. This inventory should attest to the condition of the tenement and the state of any furniture and domestic appliances supplied by the lessor. The inventory may also be presented in the form of photographs, provided they clearly and unequivocally attest to the condition of the tenement and its contents. When the tenement is let unfinished, an inventory must still be presented. The amending Act has removed the requirement to include the amount of security deposit paid by the tenant.
Express Renewal
Article 9A introduces the concept of “express renewal,” allowing for the explicit extension of a lease term. No changes to the original agreement are permitted except for a permissible rent increase, which cannot exceed five percent. The renewal period must be at least one year, though the parties may agree on a longer period. If, despite the landlord having given notice of termination, a tenant is allowed to stay beyond the contractual termination date while the landlord requests rent but has not registered a renewed agreement or revoked the termination notice, a written notice in terms of Article 20 of the Act will be issued by the Authority. This notice will describe the offence, the remedies, and the administrative penalty, which may be up to €2,329.37.
Substitution of the lessee
Article 9B allows any party to request the substitution of the lessee in a private residential lease, but this requires the express consent of both the lessor and the lessee(s). The terms “outgoing lessee” and “incoming lessee” are introduced, with the former being the original lessee and the latter the new lessee replacing the original.
The addition of a new lessee
Article 9C allows for the addition of a new lessee to the agreement, but only with the express consent of both the lessor and the existing lessee(s). The new lessee will be held responsible for any debts incurred before their addition to the agreement. They must be given access to the original lease agreement and all relevant registration details.
Termination of lease agreement
Article 9D stipulates that if both parties agree to end the lease early, or if the tenant leaves without informing the lessor, the lessor can apply for a new lease on the same property. This is allowed even if the original lease period has not ended, provided the landlord notifies the relevant authority about the early termination or abandonment. The Authority will inform the previous lessee about the lessor’s request to cancel the lease. However, if the tenant abandoned the property, cancelling the lease does not absolve the lessor of responsibilities to the previous lessee if the property was rented to someone else in bad faith.
Transitory Provisions
Leases that commenced prior to the amendments introduced by the Amending Act will continue to be governed by the previous Act. However, leases still in force on 31st August 2025 must comply with any laws or regulations stipulating occupancy limits.
Conclusion
Act XX of 2024 revises the laws governing leases and private residential leases, providing detailed updates and clarifications. Key changes include the clarification of lease continuation rights when tenants are indefinitely admitted to healthcare facilities under pre-1995 rent laws. The Act standardises a three-month notice period for lease terminations, aligning it with the Private Residential Leases Act. It also introduces precise definitions for “Building” or “premises” and “Dwelling house,” and includes subleases in the definition of a lease. The registration period for rental agreements has been extended from 10 to 30 days, and new requirements mandate detailed inventories of property conditions. Express renewal provisions now allow explicit extensions with permissible rent increases, and establish rules for lessee substitution and the addition of new lessees. Additionally, the Act provides procedures for landlords to apply for new leases if the original lease ends early or if a tenant abandons the property.
These amendments aim to enhance clarity and fairness in the law of lease, ensuring better tenant protection and habitability standards.
Andrew Drago
Legal Intern
Mifsud & Mifsud Advocates
For more information you can contact one of our Team Members at Mifsud & Mifsud Advocates.
