Malta is an attractive place to be for many reasons. Worth visiting at least once in a lifetime, this island has a lot of things to offer. For instance, its historical capital city Valletta, which is a UNESCO recognised world heritage, has been chosen to be the European Capital of Culture in 2018. This means Malta will witness an exciting and inspiring range of events that will involve a lot of creative people coming all over Europe exchanging and sharing their knowledge with each other.
Besides being rich in its history and culture, Malta is a perfect destination for its pleasant climate and year-round sunny weather, stunning deep blue and turquoise waters and picturesque views. An ex-British colony, Malta’s second official language is English, which makes it a desirable country to live in and study. Maltese people are famous for their hospitality and welcoming attitude, therefore one can easily feel like home when visiting or even moving to the island. Additionally, Malta is an attractive country for the business due to its low tax rates and advantageous banking conditions.
The real estate industry in Malta is currently booming, increasing property prices yearly, if not monthly and many people find it easier to renting a property, rather than buying it. Today we are going to go through the types of rental agreements, their advantages and the difference between them.
Fundamentally, there are two types of rental agreements – short term and long term. By local law, long term agreements are defined as letting contracts with a duration of a minimum of 12 months. However, the real estate practice shows that the landlords are often willing to sign a 6 month extendable contract and proceed with a long term agreement. The advantages of this type of rental agreement are:
- Lower rent price comparing to short term agreements.
- Security for the tenants of having a place rented for at least a year.
- Security for the owner to having long-term tenants renting out the property.
- Lower taxes payable.
- Bills paid by the tenants.
- No permit required to register the property for long let.
- Variety of options to choose from as the most of the available properties are listed for long let.
The second type of rental agreements are related to short-term properties. These are particularly popular among tourists, students coming for English courses or internships and even individuals visiting Malta for business purposes. Additionally, we have an experience with clients relocating to Malta and willing to stay at short let accommodation while searching for their long-let real estate. Therefore, the duration may vary from a couple of days to a couple of months. As practice shows, not everyone is willing to stay in hotels and give preference to short let properties. But what is the reason behind it? Firstly, it is the cost – short lets’ rent is still cheaper compared to hotels. Secondly, people are often demanding more privacy the hotels are not able to provide at times. Opting for a short let property means an opportunity of meeting the criteria you are after – whether it is a pool, Jacuzzi, garden or sea views, while the hotel room might be more limited in the variety of its options.
So, what is the difference between long and short let properties? Basically, short let agreements are signed for a period of less than 12 months. Normally, their duration is a couple of days, weeks or months – the period that is less than half a year. The tenants pay less commission for the agency depending on the duration of stay in the accommodation. However, there are higher taxes and rental price compared to the long-term agreements.
Why are the short-let properties are more expensive to rent out than those which are long let? First, the procedure of letting the property for a short period of time is a more complicated process from the owners’ side: they have to receive the permits, pay higher taxes and recruit agencies for advertising and taking care of their real estate, as well as covering the cleaning expenses. Additionally, it can be explained by the utility and communication bills that are included in the price of the short-let accommodation. Generally, the price of short let properties per day starts from €50 in Malta and increases depending on the location and features of the accommodation.
We hope you found this information useful! And we wish you a pleasant stay in Malta, whether for short or long period of time. Should you have any comments or question regarding, please feel free to drop us a line. Our real estate agency is always here to support you on your real estate journey!