Our rent laws

There are certain problems within our country and society that can only be solved satisfactorily over a long period of time. However, long-term solutions to such problems must be planned now and implemented over a set period so that the people involved would know that something constructive is being done. The two main problems of this nature are the drydocks and our antiquated rent laws.

Our rent laws and their related problems have been created by successive governments for different reasons. It is a problem no political party seems to want to tackle seriously as it might upset the apple cart and lose favour with a sufficient number of the electorate. It is however a problem that simply will not go away and is of sufficient gravity and concern that makes it imperative for all political parties to seriously work together in order to solve it once and for all.

There are so many owners who have no access to their own properties now or in the future. These same owners receive peppercorn rents for their properties and, to add insult to injury, are also liable for their maintenance.

Such properties can never be sold at anywhere near the correct market value and owners find themselves owners of liabilities rather than assets. This simply is not fair.

There are many Maltese people who are living in and renting, at very low rents, properties belonging to other Maltese. These people take advantage of the very unfair rental laws and remain permanently in the properties even though they may have been given or rented the property for an agreed period of time. This again is not at all fair.

Fair or not, there are so many of these sitting tenants that successive governments have been loath to make waves and sort out the mess.

There are many properties left empty because the owners do not trust the existing rental laws, which could change on a political whim (as has happened in the past) leaving them with a sitting tenant and the ensuing problems.

What is the solution?

There has to be new laws and regulations

- formulated and agreed to by all the political parties
- that cannot be changed in any way.

These laws must be such that give property owners the chance to repossess their properties, have confidence to place their properties on the open market and to rent them out to Maltese people with no future problems of title and vacant possession.

These new rental laws must be cast in stone!

The only way to do this is for all political parties to agree. They will only agree if their political images are not adversely affected. They will only agree if they will not lose votes to their competitors. The future of sensible and fair rental laws depends on the political will of all Maltese politicians. Isn't that amazing? I also think it is very challenging. Will the politicians take up the challenge?

If they do, then they will have to try and keep the owners reasonably happy and they will also have to keep the tenants even more reasonably happy, especially as there are many more tenants than owners.

The truth is that no one will be absolutely happy. But if the changes are done over a reasonable period of time, then acceptable results to all concerned could materialise. A reasonable period of time for these changes to occur will give the tenants and their families ample time to rearrange their domestic affairs.

Here is an idea that could be a basis for discussion.

Existing recognised tenants can remain in the property until they die or wish to leave. (Most of these sitting tenants are quite elderly). They will pay the existing rent that will increase annually by the cost of living index. Maintenance of the property will be at the charge of the tenant.

On the decease of the recognised tenants, the property will be handed over to the owner. If, however, there is an immediate relative of the recognised tenants who has lived with the recognised tenants for a period of at least five years, and is registered with the authorities as the property being their only place of residence, then, if this is the case, this relative, and only this relative, will have the right to live in the property as a tenant for a further period of not longer than 10 years. A new agreement will be drawn up between the new recognised tenant and the property owner for this period of lease.

During this 10-year lease agreement, the rent will be double that paid by the original recognised tenant, with the same conditions of yearly revised increases. At the end of the new 10-year agreement, the property automatically reverts to the proper owner.

This isn't completely satisfactory for the owners but at least they would have a definite vacant possession date and can negotiate and plan their property accordingly.

New leases entered into by Maltese to Maltese will be covered under normal commercial domestic rental contracts and these rental agreements will be guaranteed by all political parties which would commit themselves that these conditions will not change in the future to the detriment of the property owners.

Mr Salt is a real-estate agent.