Landlords and tenants can now settle small disputes without resorting to lengthy and costly court proceedings.
A new adjudicating panel made up of professionals in the sector will resolve disputes of up to €5,000 related to maintenance, security deposits and bills.
The panel has been set up under the auspices of the Housing Authority as part of a revised rent law which came into effect this year.
It will be chaired by lawyer Carlos Bugeja, who said the panel would ensure justice was “simple, cheap and efficient” and also ensure “better standards of behaviour in the rental contractual relationships.”
“Our courts teach us that the party to a contract is not only bound by what is written in an agreement, but must actively seek to preserve the interests of the counter-party in an agreement. This is the basic standard of behaviour which the Panel of Arbitration shall keep as the fundamental basis for its decisions,” Bugeja said.
Social Accommodation Minister Roderick Galdes said the panel would free law courts up to focus on bigger cases while providing tenants and landlords with a quick and simple way to resolve minor disputes which provided clarity to both parties.
“This shall also help the rental market develop into a more professional and transparent one,” Galdes added.
Housing Authority chief Leonid Mackay promised that the panel adjudication process would be efficient and affordable, with only nominal fees and decisions within “days”.
Rental market survey
In the first four months of the year, more than 10,000 rental contracts were registered with the Housing Authority.
Galdes said a survey into the rental market confirmed that confidence remained strong, despite the coronavirus-induced economic slowdown.
80 per cent of landlords said they would continue investing in the private rental market while 75 per cent of tenants said that their landlords had helped them out – through a rent reduction or other such measure – when asked.
74 per cent of landlords who were impacted by COVID-19 chose to reduce rent voluntarily, with Galdes saying that “goes to show that the two parties are partners in this relationship”.