FEA affiliates with MDA
Friday, June 26th, 2015
The Federation of Estate Agents (FEA) has become an affiliate member of the Malta Developers Association (MDA). The agreement was signed today (Thursday, 25 June, 2015) at the Palace Hotel, Sliema, in the presence of the Parliamentary Secretary for Competitiveness and Economic Growth, Dr Josè Herrera.
Dr Herrera said that the White Paper to regulate the estate agencies, announced in the 2015 Budget, is to be issued in the coming months. He congratulated the two associations on coming together to face new challenges and noted that apart from the growth in property sales, the presence of many foreigners employed in the igaming, ICT and financial services sectors had also led to a boom in the rental of properties.
MDA supports MCAST and ITS students
Tuesday, June 23rd, 2015
The Malta College of Arts, Science and Technology Entrepreneurship Centre has embarked on an agritourism project to train students in the skills and knowledge needed to be successful in the agritourism industry.
MDA ON NEW HOUSING AUTHORITY RENTAL SCHEME
The Malta Developers Association (MDA) refers to the new rental scheme launched by the Housing Authority through which property owners can rent their premises to the authority, which will then sublease it to tenants at subsidised rates.
The idea of using existing vacant building stock for rents to persons who qualify for social assistance in housing originated from one of the many suggestions made to Government before the Budget by the MDA, which had also suggested that a fixed rent for a predetermined period could be incentivised by a reduction in income tax from rents, as actually indicated in the announced scheme.
However, instead of allowing for a free rental market with tenants dealing directly with owners and then registering the lease when applying for subsidy, the scheme has become one where owners lease to the Housing Authority, which in turn sub-leases to the tenants.
This is in fact a major obstacle for the success of the scheme. Owners would normally seek to know who the prospective tenants are before they enter into a rental agreement and should not be obliged to accept anyone who obtains a sub-lease from the Housing Authority.
This would have avoided a lot of expensive bureaucracy and expenses on the part of the Authority, which will now be responsible for potential damages made to properties by its sub-lease holders.
With the announced scheme the property owners concerned will lose all control of their property and what happens to it, much as what used to happen in the past in the case of requisition orders.
It is a pity that such a good initiative has been smothered at its inception in this way rather than being allowed to flourish, something that would not have happened had the Housing Authority consulted interested stakeholders before finalising the scheme.