Due to Malta’s growing popularity with expatriates and the booming property market, investment in real estate presents several lucrative opportunities for landlords. As the demand increases, it’s essential for you to be well-informed about your rights and responsibilities when leasing your property.
In this blog post, we will explore our tips to guide you through the rental process.
Steps to take before, during, and after leasing your property:
1. Understand the laws in Malta:
It’s important to get familiar with the local laws and regulations that apply to rental properties. The Civil Code goes into detail on lease agreements, increasing the rent, and terminating the contract. We suggest using a legal professional’s services to ensure you comply with the rules. The Malta Housing Authority also provides guidance on this subject.
2. Set a competitive rental price:
Deciding on a price for your rental property must be done only after thorough market research. Setting it too high means it would be difficult to attract tenants. On the other hand, you will be missing out on a better return by pricing it too low. Especially, since you will not be able to make significant changes to it once the contract is signed. Consider the location of your property, the size and amenities, and the quality of the furnishings.
3. Draw up a rental contract:
An agreement is not only a requirement but also protects the rights of both parties. Choose a trusted professional so you can rest assured that it is well-drafted and comprehensive. Double-check that it covers payment and sub-letting terms, duration and termination, property maintenance and inventory, and responsibilities. Once signed, it must also be officially registered.
4. Conduct a screening process:
Before making any decisions, it is in your best interest to screen any potential tenants. A thorough screening process ensures that the tenant is reliable, financially stable, and responsible. Conduct a credit check, and request references from relevant parties such as employers and previous landlords. This minimises the risk of being paid late, getting complaints from neighbours or finding your property damaged.
5. Maintain the property:
It is your responsibility to regularly inspect your property so that if any issues arise, you can sort them out quickly. Planned maintenance safeguards the value of your property. Additionally, it ensures that your tenants are living in good conditions and are satisfied with the arrangements. Similarly, if they complain about an issue, it’s important to take action to resolve it.
6. Keep financial records and pay taxes
If you’re earning an income by leasing out your property, then you must maintain detailed records and fulfil tax obligations. This includes keeping track of payments and expenses, keeping a copy of tenancy contracts, and declaring rental income on your annual tax return. A tax professional can guide you through accurate, law-abiding record-keeping.
7. Check the inventory and look out for damages
In addition to taking inventory before the tenant moves in, it is also crucial to inspect your property before they move back out. Compare and contrast the inventory with the list that was agreed upon by both parties and check your property thoroughly. Then, you can determine if the deposit is needed to cover any damages or missing items or if it can be refunded back to the tenant.
Leasing your property can be extremely financially rewarding. By following these 7 steps, you can make sure everything goes smoothly during the rental period. Naturally, you must stay up to date with any changes in rental laws to remain compliant with Malta’s regulations.
If you’re in search of properties that are ideal for rental purposes, make sure to explore our Current Developments. Our team can help you find the right property for your needs!