The debate surrounding short-term rentals in Malta has gained significant traction and for good reason. Platforms like Airbnb have transformed the global tourism landscape – but while they have created more choice for tourists and new opportunities for property owners, they have also introduced local challenges for communities that cannot be ignored.
As policymakers explore new regulations, it is crucial that we strike a balance – one that protects the rights of property owners, ensures the comfort of residents and strengthens Malta’s tourism reputation.
Based on our extensive experience at Casa Rooms, where we manage short-term rentals at scale every day, here are three practical suggestions for how Malta can move forward effectively.
Every apartment block in Malta should be legally required to have a condominium association. This is standard practice in many countries and it provides a structured way for residents to manage shared spaces and resolve disputes. Without such associations, regulating short-term rentals becomes unnecessarily chaotic.
It is important to note that this is not just about short-term rentals.
Condominium associations create a much-needed framework for managing common areas, handling maintenance and preserving harmony in shared living spaces.
While newer blocks in Malta already have this requirement, older ones are not legally obligated to do so. Making this a universal mandate would introduce order and accountability across all residential blocks and will also make vacant properties in run-down buildings more attractive to finally get the investment they require.
Once condominium associations are established, they should be empowered to vote – every three years, for example – on whether to allow short-term rentals in their buildings. To ensure fairness and consensus, I suggest requiring a two-thirds majority for such decisions.
If the vote permits short-term rentals, the condominium association can then take steps to prepare common areas appropriately, addressing issues such as security, waste management, and noise control.
Only after these preparations are complete should individual owners within the block be eligible to apply for a short-term rental licence.
This process ensures a democratic approach that balances the rights of property owners with the well-being of their neighbours, creating a more harmonious environment for all.
Ensuring compliance should not be a one-off event. Sporadic, unannounced inspections are essential for both short-term rentals and hotels to maintain high standards over time.
Responsible short-term rental practices do not have to come at the expense of residents’ well-being- Cecil McCarthy
It simply does not make sense that tourist accommodations – including hotels – are often inspected just once, at the point of licensing. How can we ensure that standards are being upheld? Is a four-star hotel still a four-star establishment after years of neglect or inadequate investment?
Ongoing monitoring and enforcement are vital to protect Malta’s reputation, guaranteeing safety, cleanliness and quality for visitors.
Regular inspections would also level the playing field between traditional hotels and short-term rental operators, fostering fair competition and greater accountability across the industry.
Malta is not alone in addressing these challenges. Cities around the world, from New York to Barcelona, are implementing measures to balance tourism with community needs. While some have opted for outright bans or strict moratoriums, Malta has its own context.
We have the opportunity to study what is happening in other countries and lead with innovative, balanced solutions that respect both community interests and property rights.
Forcing short-term rentals underground by imposing excessive restrictions would only worsen the problem, leading to lost tax revenue and diminished oversight. On the other hand, too little regulation risks alienating residents and damaging Malta’s long-term appeal as a destination.
By empowering strong condominium associations, introducing democratic decision-making and ensuring consistent inspections, we can create a regulatory framework that works for everyone.
Responsible short-term rental practices do not have to come at the expense of residents’ well-being.
The goal should be a system that supports harmonious community living while allowing Malta’s tourism sector to thrive. With thoughtful, fair regulations, Malta can continue to be both a cherished home for its residents and a world-class destination for travellers.
Cecil McCarthy runs Casa Rooms, a property management company based in Malta, Gozo and Sicily.