The rent reform law, approved by Parliament last week, will cut down the freedom of contract between landlords and tenants of residential properties, according to developers.
The Malta Developers Association expressed its "regret" in a statement in which it also said it was pleased that several suggestions it had put forward had been taken into consideration.
"As much as the objectives of the law are positive in ensuring standards of fairness, clarity and predictability in contractual relations, its effects must not be allowed to negatively affect the feelgood factor of the industry and the appetite for more investment in this sector, especially in high-end properties," MDA said.
The MDA warned that in the long term, the new law could lead to a lose-lose outcome for both tenants and landlords.
However, it was confident that as it had done in separate instances in the past, the government would fine-tune the reform, so as to address the law’s negative effects highlighted by the association.
The MDA added that it had worked hard to improve the rent legislation throughout the entire process. It called on landlords to seek reliable legal advice before entering into any new contractual agreement.
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