Rent increases in Malta: what a landlord may ask
Under the Private Residential Leases Act (Cap. 604) the rent of a private residential lease is freely agreed when the lease is signed (article 13), but once the lease is running the landlord's room to raise it is narrow. Article 14 allows an increase only if the contract expressly provides for one, only once a year, never during the first year, and never above the annual variation of the Property Price Index published by the National Statistics Office. Even when the index rises faster, the increase may not exceed five per cent of the previous rent; if the index falls, the rent stays where it is.
These limits apply during the term and on renewal of the lease. They do not stop a landlord from ending the lease on expiry with proper notice and offering a new lease at a different rent, which is why the notice rules matter as much as the cap.
This guide is for tenants who have received a demand for higher rent and for landlords who want to apply an increase correctly. It explains how to check the clause, calculate the maximum, deal with renewals and extra charges, recover overpayments, and how the separate regime for leases that began before 1 June 1995 works.
Key facts
Deadline
An increase may take place only once every year and not during the first year of the lease (article 14(1) of Cap. 604); the landlord must give notice of non-renewal by registered letter at least three months before expiry (article 9(1)); an appeal from the Adjudicating Panel or the Rent Regulation Board lies within twenty days.
What to do
Check which regime governs your lease. Cap. 604 applies to private residential leases entered into or renewed after 1 January 2020 (article 3(1)). Leases granted after 1 June 1995 that were still running when the Act came into force remain under the Civil Code (Cap. 16) for the rent, with certain Cap. 604 provisions prevailing (article 5(3)). Leases of a residence that began before 1 June 1995 follow a separate regime under article 1531C of the Civil Code and the Housing (Decontrol) Ordinance (Cap. 158).
Tourist lets, Government housing and premises not let as a primary residence are outside Cap. 604 altogether (article 3(2)). Look at the date and type of your contract before you rely on the five per cent cap.
Read the rent clause in the registered contract. In the absence of any express agreement, the rent cannot be revised during the term of the lease (article 14(1)). If your contract fixes the rent with no review clause, a demand for more during the term has no legal basis, however reasonable the reasons given.
If there is a clause, note its wording: a fixed percentage, an index or a formula. A clause cannot authorise more than article 14 allows, and any condition agreed orally or in a side letter that does not result from the written and registered contract is void (article 15(1)). The registered version on the Housing Authority's system is the one that counts.
Check the timing of the increase. Rent increases may only take place once every year, and during the first year the rent must stay at the same amount (article 14(1)). An increase applied after six months, or a second increase within the same year, is not permitted.
Count the year from the start of the lease or from the date of the last lawful increase. If the landlord applies the increase early, pay the old rent on time and ask in writing for the increase to be postponed to the correct date; do not stop paying altogether, since late rent can lead to a judicial letter and termination proceedings under article 1570 of the Civil Code.
Calculate the maximum increase. Yearly increases may not exceed the annual variation in the Property Price Index published by the National Statistics Office, understood as the average of the previous four quarters recorded until the date of the increase (article 14(2)). In any event, the increase may never exceed the previous rent by more than five per cent (article 14(3)), and a negative variation does not reduce the rent (article 14(4)).
Example: on a monthly rent of €900, if the four-quarter average of the index is 3 per cent, the maximum is €927; if it is 7 per cent, the five per cent ceiling applies and the maximum is €945. Ask the landlord to show the index figures used; the published index is the only lawful reference.
Understand renewals. If the landlord does not send a notice of termination by registered letter at least three months before expiry, the lease is renewed for a further year (article 9(2)); the renewal does not create a fresh freedom to reset the rent. Parties may also renew expressly, but an express renewal may not change the original agreement except for an increase permissible under article 14 (article 9A(2)).
A landlord who wants a substantially higher rent must therefore end the lease properly on expiry, with three months' notice by registered letter (article 9(1)), and agree a new lease. If he lets you stay on after giving notice while asking for rent, without registering an express renewal that revokes the notice, he is exposed to the enforcement procedure of article 20 (article 9A(6)).
Watch for disguised increases. A lease may not impose payments other than the rent, the deposit, insurance on the contents and condominium contributions within the limits of the law (article 7(1)(d)). Fees for the use of furniture beyond the rent (article 7(1)(e)) and fixed utility charges that do not reflect actual consumption (article 7(1)(f)) are without effect, and the tenant may request restitution of amounts unduly paid.
The landlord may not require more than one month's rent in advance unless otherwise agreed (article 13(2)) and must give a receipt for each payment, unless the payment method itself proves it (article 13(3)). Keep bank transfers rather than cash payments.
Reply in writing and pay the lawful rent. If the demand goes beyond what the contract and article 14 allow, write back by registered letter or e-mail, quoting the clause and the index figure, and state the amount you will pay. Continue to pay that amount punctually. A refusal to pay an unlawful excess is not a failure to pay the rent due, but a failure to pay the rent that is actually due can lead to termination after a judicial letter and fifteen days (article 1570 of the Civil Code).
If you have already paid more than the registered contract allows, you may request restitution of the excess (article 15(2)); set out the months and amounts in a short table.
Take a dispute to the right forum. Money claims up to €5,000 under a registered lease that do not involve termination, including rental arrears and damages from any breach of Cap. 604, belong to the Adjudicating Panel for Private Residential Leases (article 23(2)(b)(ii) and (vii)). The claim is in writing, the other side replies within ten days and the Panel decides within five working days of the last submission (articles 26–27).
If the landlord seeks termination or eviction, or the amount is higher, the Rent Regulation Board is competent (article 16(4) of Cap. 69). The Panel and the Board hear only registered leases (article 23(2) of Cap. 604; article 16B of Cap. 69), so make sure the lease and any renewal are registered.
If your lease began before 1 June 1995, different rules apply. For an old residential lease, the Civil Code raised rents below €185 a year to that amount from 2010 and provides for an increase every three years in line with the inflation index under article 13 of Cap. 158 (article 1531C(1)–(2) of Cap. 16). In addition, the landlord may apply to the Rent Regulation Board for the rent to be reviewed to an amount not exceeding two per cent per annum of the open market value of the dwelling (article 12B(2) of Cap. 158).
In those proceedings the Board conducts a means test of the tenant and the Housing Authority may intervene (article 12B). A tenant who receives such an application should seek legal advice early and prepare evidence of income and capital.
What to watch out for
- Accepting an increase that the contract does not provide for. Without an express clause, the rent cannot be revised during the term (article 14(1)).
- Agreeing a higher rent orally. A condition that is not in the written and registered contract is void and the excess can be reclaimed (article 15).
- Stopping all payments in protest. Pay the lawful rent on time; arrears can lead to a judicial letter and termination (article 1570 of the Civil Code).
- Not checking the Property Price Index figure. The increase is capped by the average of the previous four quarters and by five per cent, whichever is lower.
- Signing an express renewal that changes other terms. Article 9A(2) allows only an article 14 increase in an express renewal.
- Overlooking extra monthly fees for furniture, services or fixed utilities. They are often an increase in disguise and may be without effect under article 7.
- Treating an old pre-1995 lease as if Cap. 604 applied. The review under article 12B of Cap. 158 can lead to a much larger increase after a means test.
Legal basis
Frequently asked questions
How much can a landlord increase rent in Malta?
Under article 14 of Cap. 604, by no more than the annual variation of the Property Price Index published by the National Statistics Office, averaged over the previous four quarters, and never by more than five per cent of the previous rent. If the index is negative, the rent is not reduced.
How often can rent be increased in Malta?
Only once every year, and the rent must stay fixed during the first year of the lease (article 14(1) of Cap. 604). Even then an increase is possible only if the lease expressly provides for it; without such a clause the rent cannot be revised during the term.
Can my landlord raise the rent if the contract says nothing about increases?
Not during the term. Article 14(1) of Cap. 604 says that in the absence of an express agreement the rent cannot be revised during the term of the lease. The landlord may only end the lease at expiry with three months' notice by registered letter and offer a new lease (article 9(1)).
Does the five per cent cap apply when the lease is renewed?
Yes for a renewal of the same lease. An express renewal may not change the original agreement except for an increase permissible under article 14 (article 9A(2) of Cap. 604). A completely new lease after a valid notice of termination is freely negotiated (article 13(1)).
What is the Property Price Index used for rent increases?
It is the index of residential property prices published by the National Statistics Office. For rent increases, article 14(2) of Cap. 604 uses the average of the annual variations recorded in the previous four quarters up to the date of the increase. Ask the landlord to show the figures he relied on.
I agreed to a higher rent verbally. Can I get the money back?
Yes. Any agreement, verbal or written, on a condition that does not result from the written and registered contract is void, and the tenant may request restitution of amounts paid above the registered contract (article 15 of Cap. 604). Claims up to €5,000 go to the Adjudicating Panel.
Can the landlord charge extra for furniture or a fixed amount for bills?
No. Clauses imposing payments for the use of movables beyond the rent, or fixed utility amounts not reflecting actual consumption, are without effect, and amounts unduly paid may be reclaimed (article 7(1)(e)–(f) of Cap. 604). Utilities should be billed on actual consumption at the residential tariff.
What if I refuse to pay an unlawful rent increase?
Keep paying the rent lawfully due on time and explain your position in writing. The landlord can seek termination for arrears only after a judicial letter and fifteen days without payment of the rent due (article 1570 of the Civil Code). Disputes up to €5,000 go to the Adjudicating Panel (article 23 of Cap. 604).
How are rents on old pre-1995 leases increased?
They follow article 1531C of the Civil Code, with an increase every three years in line with the inflation index, and the landlord may ask the Rent Regulation Board to review the rent up to two per cent a year of the open market value, after a means test of the tenant (article 12B of Cap. 158).
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