When Is Your Rental Deposit Refundable?
To secure a property and take it off the market in Malta, you will be asked for a reservation fee, which is your rental deposit. Make no mistake - this is not refundable. You are not going to be refunded if you change your mind.
What You Need to Know About Security Deposits in Malta
In Malta, the reservation fee (aka. rental deposit) is equivalent to one month’s rent. Eg. if your rent is €1000, then your rental deposit is €1000. On top of the rental deposit, a real estate agent asks for a fee - a finder’s fee or an admin fee.
Security deposit takes the property off the market and acts as a security
The landlord then holds onto your deposit until the end of your tenancy. If don’t stick to the tenancy agreement, eg. damage the property, the landlord can withhold all or a portion of the rental deposit.
🤝 We discussed different types of private rental agreements before, have a look!
It's possible to have a verbal agreement but avoid taking a rental property without a written and signed tenancy agreement. But, it's close to impossible to prove or disprove anything, in case you take any legal actions.
Before you sign a tenancy agreement
1. Take inventory 📝
Furnished or unfurnished - either way, make sure you have an inventory list. An inventory list is required by law in Malta. This is everything inside and outside of the property. Include the number of cutlery! Go through the list and tick everything before signing anything.
2. Take pictures
Take pictures of each room. Pay attention to walls, floors, and any damaged areas. The landlord will not be able to claim damages for those at the end of the tenancy.
This post is for you to follow good practices. Most of the time there aren’t gonna be any issues. It’s just better to be safe than sorry 😉