Bertille Lungaro MifsudThe rental charged by landlords has gone up by as much as 15 per cent in the past year in areas such as Sliema and St Julian’s, according to Frank Salt property consultants.
Demand has been building up to the point where a tenant can be found within a week, senior property consultant Bertille Lungaro Mifsud said.
“There are simply not enough properties available for us to keep up with requests,” she added, saying that this was encouraging more and more people to invest in properties as buy-to-rent.
“Tenants are looking for good properties, so you have to be prepared to pay €150,000 for a one-bedroom flat,” she explained.
The rental scene has taken on a life of its own, shaped primarily by the gaming industry which has resulted in an influx of young, often single Scandinavians, who want to be in the hub of social life, with restaurants and bars just outside their door.
Nadya Muscat“There are also other nationalities and also families who might opt for somewhere quieter, like Balzan, but Scandinavians want the Mediterranean lifestyle,” property consultant Nadya Muscat said.
“In fact, very often a few of them get together to rent an apartment for anything from €2,000 to €3,000 a month. They want to enjoy the upmarket life...”
However, the economy has attracted other nationalities from member states with high unemployment, who come here in the hope of finding a job.
“This is good news for landlords as it means that even flats at the lower end of the scale – or outside the core areas – are also in demand,” Ms Muscat said.
The trend is for tenants to take up rentals for six months, giving them enough time to get used to the island, sort out transport and settle into the job. Although some of them opt to buy, the majority tend to extend their leases.
For landlords, the game has also changed as online sites like AirBnB have made finding short-lets much more feasible. With some 800 properties in Malta now listed on one site alone, landlords are now weighing up whether they prefer a steady income of €700-800 a month or to charge as much as €200 a day for a flat with a view – especially since there are now reputable property management companies, like Frank Salt Real Estate, which can take care of pretty much every aspect of the rental for very competitive fees.
“Even if you take into account the risk that you will not fill the property every day, and that it is seasonal, there is clearly the potential for a considerable income,” Ms Lungaro Mifsud said.
Tenants are looking for good properties, so you have to be prepared to pay €150,000 for a one-bedroom flat
Another aspect of the rental market that has changed is whether flats are furnished or not. In the past, when the market was predominantly Maltese, the demand was for unfurnished, which is clearly no longer the case.
“We often advise tenants who make enquiries from abroad that they should not bring their own furniture down: that they should either put it into storage or sell it,” Ms Muscat said.
“But renting out furnished properties requires a bit of effort on the part of the landlords. Properties need to be clean and tidy and uncluttered. We are always there to help them with advice on how to ‘stage’ the property to make it more attractive.”