The de facto ramifications of the means test criteria as known to the Maltese law of lease : an analysis

Abstract

This dissertation meticulously analyses the means testing criteria which have been introduced in light of critical amendments to the Maltese rent law regime. With the European Court of Human Rights condemning the old framework for failing to strike a fair balance between the rights of the tenant and the landlord, legislators sought to remedy the situation, allowing property owners to demand rent increases and potentially reclaim their tenements governed by pre-1995 leases, all through the implementation of the tenant means testing procedure. The first chapter examines the background of the Maltese tenancy market, and the legislative evolution leading to the adoption of means testing. This section briefly analyses how the Rent Regulation Board utilises means testing to assess the financial position of tenants, determining whether they are capable of securing alternative accommodation, or if they will be allowed to continue residing in the residence following an increase capped at 2% of the fair market value. In the subsequent chapter, an examination of the constitutive features of the means testing criteria under Maltese law is undertaken. This chapter encompasses an analysis of the technicalities and practical application of the criteria when assessing tenant qualification, particularly highlighting specific features which foster imprecision and ambiguity. The forthcoming third chapter will scrutinise these limitations of the means testing mechanism. As per the scope of this paper, this section showcases how certain shortcomings in the law may trigger disputes and inconsistencies which further contribute to the disharmony between lessor and lessee rights. Finally, the fourth chapter serves as a culmination of the ideas explored throughout this dissertation, presenting effective arguments and recommendations for improving the means testing mechanism at it stands at present. While acknowledging the milestones which were achieved through its adoption, due to its argumentative nature, this thesis advocates for further improvements to the current criteria. As emphasised throughout this paper, additional changes must be effected to render the mechanism effective, transparent and all-encompassing.