RENTING PROPERTY IN GOZO
Renting out a property in Gozo for a Long Let is generally a straight forward procedure in comparison to other countries. Rents are paid monthly in advance directly to the Landlord in most cases, or via your agency if the agent is managing the property. The process is very simple.
Once you have chosen your desired property, you can choose to make an offer to the Landlord or through your agency. The landlord can either accept, refuse or counter offer.
Long lets are classed as a minimum of 6 Months. Anything shorter than 6 months is a Short Let, and in that case rental payments are based on a daily rate, rather than monthly.
A security deposit requirement is standard practice in Malta.
The deposit is held to cover any breakages, damage, rent arrears or other tenant liabilities. Where we are managing, at the end of the tenancy we will check the property in the presence of the Tenant and assess any damages and deductions due – this is referred to as the check out.
The Deposit is usually the equivalent of one month’s rent and is held by the Landlord. The deposit can be more, for certain properties, and expect it to be more if you have pets and the Landlord has accepted this.
Please note that the deposit cannot be used by the Tenant to cover rent.
Once a monthly rental rate has been agreed the next step is to create a Tenancy Agreement which should be drafted up by your agent. It is extremely important that the tenancy agreement is fully understood by both parties before signing. Both the Landlord and tenant/s will be required to sign the tenancy agreement prior to the tenancy commencing, the agreement outlines both tenant and landlord obligations.
Generally, most tenancies run for a minimum period of twelve months, we will contact you two months before the end of the tenancy to see whether you wish to renew your agreement for a further period and will liaise with the landlord to organize the documentation.
By good practice we will issue you with a sample template agreement which we ask you read very carefully, should any questions arise regarding this legal document we advise you to seek independent legal advice.
Once a moving date has been agreed the tenancy agreement will need to be signed by all parties and the initial monies in full will become due less any holding deposit previously paid:
This is made up of the following:
- Security Deposit normally equal to one month’s rent.
- The first month’s rent in advance. (Rent is worked out on a per calendar month basis)
The above monies need to be in a cleared form before the tenancy is able to begin.
We do get instructed to fully manage some of our landlord’s properties, if this is the case, with your tenancy we will inform you prior to your tenancy commencing. If we are managing then any faults with appliances or problems within the property will need to be reported to us and we will deal with the problem as quickly and efficiently as possible. Failure to report an ongoing problem may turn the onus onto you; please report any problems you feel need attention.
Rental payments are always made directly to the landlord either via bank transfer or by cash, with the exception of managed properties whereby the rental payment is made to our client bank account.
The responsibility for your belongings are down to you, we advise that you have adequate contents insurance, the landlord accepts no responsibility and cannot be held responsible for any loss or damage to tenants possessions.
A well-prepared inventory and ‘check-in’, report protects landlords and tenants alike, providing an accurate description of the condition and contents of a property at the start and end of a tenancy.
The condition of the property and its contents at the end of the tenancy is then compared back to this report in the form of a ‘check-out’ report. The inventory clerk will also provide an opinion on whether any damage that has arisen during the tenancy is attributable to the tenants, to ‘fair wear and tear’ or to the landlord as required maintenance.
It is in a landlord’s interest to ensure that inventories are prepared for properties that they own, but it is not compulsory.
Normally an inventory of the property condition, furniture and fittings and effects will be prepared by our qualified inventory clerk prior to the tenancy commencing. The tenancy is checked and agreed between the tenant and the landlord at the tenancy commencement. It is standard practice that the landlord bears the costs for the Inventory and check-in and the tenant bears the costs of the check-out – usually in the region of €35. GozoLetting can arrange for a qualified inventory clerk to carry out the check-out.
If we are instructed as managing agents for your property, we will carry out bi yearly inspections to assess the condition of the property and that everything is being kept in a satisfactory condition. We will always arrange this with you at a mutually agreed time.
Our fees are the standard one-time payment equivalent to 50% of the first month’s rent and are subject to local VAT, presently at 18%.
Our service includes advice on renting property in Malta and Gozo, accompanied viewings, negotiations with the landlord, assistance in setting up utilities, preparation of the tenancy agreement.
The responsibility for the property lies with the tenant during the period of tenancy, as such the tenant has certain obligations, examples of which are:
- to pay the rent on the agreed date without fail (otherwise they are liable to pay interest from the due date).
- to pay all utility bills unless otherwise agreed with the landlord and stated in the agreement.
- to pay compensation for any damage done to the property during the tenancy (apart from fair wear and tear). Damage could include breakages or leaving the property in an unclean condition at the end of the tenancy.
- to use the property as a home and not a commercial business.
- to take good care of the property and its fixtures and fittings.
- to make sure the property is clean (thorough domestic cleaning at the end of a tenancy is often required by the tenancy agreement) and that all contents are left intact.
- to replace light bulbs and smoke-alarm batteries and carry out basic maintenance such as looking after the garden and other outdoor space.
- to keep the property secure at all times. Let the landlord or managing agent know if any repairs or maintenance needed on the property, as soon as it arises.
- not to alter the property or garden/outdoor space in any way.
- not to create unnecessary noise or disturbance to the neighbours.