In a recent decision by the Rent Regulation Board, a tenant occupying a house in which he is a co-owner was ordered to vacate the property after it was determined that he did not meet the criteria set by the means test under Malta’s rent laws. The case, brought forward by the claimant, sought to increase the rent and potentially evict the respondent in accordance with revised rent laws which governs protected leases.
The property in question had been rented to the respondent at a fixed, protected rent rate of €138 every six months. This protected status had been in place since before 1995, offering long-term tenants rent stability. However, with recent amendments introduced in 2021, landlords are now allowed to apply for rent reviews and potential evictions if tenants fail to meet the required financial criteria set forth in the revised laws.
In this case, both the claimant and respondent co-own the property in equal parts, having inherited it. The respondent, who had been living in the property for years with a very low rent, declared in a sworn statement that he possessed sufficient means and refused to submit the required financial documents for the means test.
The main point of contention arose from the respondent’s defence that since he is a co-owner of the property, he could not be evicted because he had every right to enjoy and make use of his property. However, the Rent Regulation Board, citing from a previous case law, dismissed this argument, ruling that the respondent’s co-ownership does not exempt him from complying with the provision of the revised rent laws. The quoted case had delved into the wording of the revised rent laws to examine whether the law exempted tenants that were co-owners from being subjected to the means test, and whether they were in any way protected from eviction and concluded that no such protection or exemption was afforded to tenants that were co-owners of the property.
The Board noted that the respondent had been enjoying the property exclusively, preventing the claimant from exercising any proprietary rights over it. This situation, the Board stated, justified the claimant’s request for a rent increase and potential eviction if the respondent failed to meet the financial requirements of the means test.
The means test, as outlined in the Regulations on Lease Continuation (Means Test Criteria), requires tenants to demonstrate both their income and capital fall within established limits to continue benefiting from rent protection. In this case, the respondent openly admitted that he did not meet these financial criteria, stating under oath that he had sufficient means. Additionally, the respondent failed to submit the required documents to prove his eligibility for rent protection.
Based on these facts, the Board concluded that the respondent does not qualify for protection under the revised rent laws. As a result, in line with provisions of the same law, the respondent was ordered to vacate the property. However, the law grants the tenant a period of two years to find alternative accommodation, during which time he must pay compensation to the claimant for continued use of the property.
The ruling reflects the changes brought about by the 2021 amendments to Malta’s rent laws, which aim to strike a balance between tenant protection and landlords’ rights. While tenants who meet the means test criteria can continue benefiting from rent protection, those who exceed the financial limits are subject to rent increases or even eviction.
This decision highlights the importance of complying with the revised legal framework, which seeks to ensure that rent protection is reserved for those who genuinely need it, while allowing landlords to claim fair compensation for the use of their properties. Tenants who fail to meet the financial requirements or refuse to provide the necessary documentation may find themselves facing eviction, even if they have held protected lease status for decades and are co-owners of the property.
The claimant was assisted by Dr Gianluca Cappitta & Dr Ian Barbara.
Av. Gianluca Cappitta
Partner
Mifsud & Mifsud Advocates
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