As the CEO of Alliance Real Estate, I would like to weigh in on the recent unfortunate incident involving discriminatory language mistakenly published in one of our property listings.
At Alliance, we have over 30 nationalities, across the company, filling positions all the way to the very top brass.
Our staff includes people from Albania, Argentina, Belarus, Bosnia, Great Britain, Bulgaria, China, Colombia, Costa Rica, Croatia, Greece, Hungary, India, Israel, Italy, Japan, Libya, Lithuania, North Macedonia, Malta, Moldova, Morocco, Nigeria, The Philippines, Romania, Russia, Serbia, Tunisia, Turkey and Ukraine.
While we have taken immediate steps to rectify the one-off incident and ensure it never happens again, this episode – an oversight by a junior employee – highlights broader issues within Malta’s housing market that merit serious and mature discussion.
First, let’s get one thing straight: landlords are not racists. They simply want to protect and maximise their investment, just as any other investor would with any other asset.
I’ve been in the real estate business for more than 25 years, and in that time I’ve worked with thousands of property owners seeking to make a return on their property through the rental market.
Brick and mortar investment remains a fundamental pillar of our economy, however, it is not uncommon for landlords to have concerns about the type of tenants that will rent out their property to.
Will they respect the building and its other residents? Will they honour their contract and payments? Or will they trash the property leaving me with a hefty cleaning bill, or worse?
These legitimate concerns are commonplace in the rental market – and with good reason. After all, landlords are often trusting tenants with major assets – often their life savings or their second home.
So, no, this is not a racial issue. It is a business matter and requires adequate policies to address it.
As real estate agents it is our duty to help ensure that tenants meet landlords’ standards without later becoming a nuisance to the neighbours living in the same apartment block or close proximity.
Although people may come from different cultures, we must all abide by local laws and cultural norms.
Whether it’s complaints about garbage dumping, leaving belongings in common areas or a host of other issues, I believe Alliance should be a catalyst to help empower the authorities to get a better grip on this industry and address the realities everyday people face – no matter what walk of life they come from.
Yes, housing discrimination undermines the principles of equality and fairness. In Malta, we have a regulatory framework that prohibits discrimination based on race, colour, religion, sex, national origin, familial status, or disability.
However, it is also essential to address the legitimate concerns of landlords who have a right to ensure their property is respected.
As president of the Real Estate Section within the Malta Development Association, I have already been involved in talks with policymakers about this.
What we are calling for is a comprehensive framework that can address these concerns, providing more protection for landlords and standards to be upheld by tenants.
In several European countries, landlords can conduct thorough tenant screenings, including credit checks and rental history reviews, while still adhering to anti-discrimination laws.
Landlords are not racists. They simply want to protect and maximise their investment- Michael Bonello
For example, in Germany, legal provisions ensure landlords can verify the financial stability of potential tenants without discriminating based on nationality or ethnicity.
Malta could introduce a system whereby tenants are ranked or reviewed by landlords.
Various online services allow landlords to screen tenants comprehensively in other jurisdictions.
For example, services like Avail, Apartments.com and RentSpree provide detailed reports that include credit scores, rental history and background checks.
Additionally, websites like Open Igloo and Rate My Landlord offer platforms where tenants can be reviewed and rated by landlords and vice versa.
Having a new national framework on lease agreements with clear terms regarding tenant behaviour, maintenance responsibilities and eviction procedures can minimise disputes, protecting both landlords and tenants alike.
These agreements should also include provisions for regular property inspections, albeit with adequate prior notice.
Allowing for higher security deposits or rent guarantees for higher-risk tenants provides financial protection for landlords against potential damages/cleaning costs or unpaid rent.
But this does not mean we should price out renters. In the UK, the private sector has innovated to introduce an insurance policy that acts as a substitute for hefty deposits that would otherwise price out certain tenants.
As with any other policy reform, this will largely boil down to enforcement and the will to ensure that new rules and requirements are being respected.
Given the size and importance of the rental market to Malta’s economy, I believe it’s time to start taking this into consideration.
Meanwhile, educating both landlords and tenants about their rights and responsibilities can also help prevent discriminatory practices and foster a more inclusive housing market.
Addressing housing discrimination and protecting landlords’ interests are not mutually exclusive goals – they go hand-in-hand.
It is my hope that we can begin a national discussion on these and other proposals to create a fairer and secure housing market for all – tenants and landlords alike.
By adopting a balanced approach that includes comprehensive tenant screening, financial safeguards, standardised lease agreements, mediation services and legal support we can begin to address these issues.
As with most other policy issues, the answer lies in political consensus and goodwill.
Michael Bonello is CEO of Alliance Real Estate.