There are mixed opinions among estate agents about how widespread discrimination is in the rental sector, but there is agreement that in a seller’s market, landlords have the final say.
Most property professionals cite “cultural differences” between Maltese and some third-country nationals as a reason for discrimination, stating that while they may not agree with a landlord’s wishes, they must comply with his wishes.
And while a real estate agent insists that his company “does not work with racists,” Times of Malta The people spoken to said they would tell customers that if a landlord insisted on not renting to a person because of their nationality, the property was no longer available.
Meanwhile, a spokesman for the Indian community said that applications from South Asians for rental accommodation were “mostly” rejected. He was told: “We don’t want to rent to Indians.”
Discrimination in the housing market made headlines last week when Alliance Real Estate traced one of its property advertisements warning “No Pakistanis, Indians, Arabs and Filipinos” (sic) to an inadvertently published internal memo.
A company spokesperson said it was “not uncommon for landlords to impose restrictions on the type of tenants they accept in their properties” and that the company was obligated to comply with such restrictions.
But Neil Falzon, director of the human rights NGO Aditus, said the law makes it clear that restricting access to housing based on nationality is illegal.
An industry source said Times of Malta Such discrimination is widespread, but is “particularly common among landlords who own several properties and derive their income from them”.
“First they ask about nationality, then about children and pets. They tell us (their requirements) and what can we do? Demand is greater than supply, so landlords can choose,” the source said.
“It’s a bit of a minefield… on the one hand it’s wrong, but that’s the business we’re in – and that business is doing very well at the moment.”
But Dhalia chief executive Alan Grima described the Alliance case as an “isolated incident” and said landlords with such restrictions made up only a fraction of the total.
And Steve Mercieca, founder of QuickLets and Zanzi Homes, said while he was “shocked” at the level of discrimination when he entered the industry, it is “not as widespread as it once was”.
However, he said the company “has no control over what landlords allow… there is a perception in Malta that certain nationalities have lower incomes and bring more tenants than planned.”
Kevin Buttigieg, chairman of RE/MAX, takes a similar view, pointing out that it is not uncommon to rent to a person with the nationality of a particular third country and then share the apartment with three or four other people.
He pointed to “cultural differences”, such as the smell of certain kitchens, as a reason why landlords reject tenants of certain nationalities, and said the attitude towards such differences was “regrettable, but that’s the way it is”.
Buttigieg declined to comment on how widespread discrimination is in the industry, saying it is “difficult to say” and depends on the region. However, he said real estate agents’ hands are tied.
“Ultimately, the landlord is the landlord and can do whatever he wants; it’s a difficult situation.”
When asked whether discrimination against landlords in the rental of properties was legal, Buttigieg said, “In my opinion, it is against the law, but we ourselves (as rental agencies) are not breaking the law.”
“Landlords often reject Indians”
A spokesman for the Malta Malayalee Association said landlords “often refuse to rent their apartments to Indians solely because of their origins”.
The owners do not hide behind any excuses, he said, adding that it is also common for Indians to be explicitly excluded.
“When we saw that Alliance had an ad that excluded Indians, Pakistanis and others, we were not surprised,” the spokesman said.
Landlords are spoiled for choice; within a few hours they can choose between different tenants… there is a shortage (of properties)
He addressed concerns that South Asian dishes could leave behind strong odors, saying that this often led landlords to charge higher prices to South Asian tenants.
“Indians end up paying extra for their accommodation… Very often we spend half our salary or more on accommodation.”
“A white lie”
Buttigieg said that when faced with restrictive landlords, he would tell prospective tenants a “white lie and claim the property is unavailable” but instead offer to show them the property elsewhere.
And Grima said that while Dhalia would continue to contact landlords about such tenants and, where possible, provide references to facilitate applications, prospective tenants would be told the property was “unavailable” if the landlord insisted.
“Landlords are spoiled for choice, within a matter of hours they can choose between different tenants… there is an undersupply (of properties).”
He said such incidents were rare, but added that discrimination was not limited to third-country nationals and that there had been similar demands in the past regarding European tenants. Grima noted that such demands had become less frequent over time, pointing out that changes to rental law limiting the number of tenants per property had reassured landlords.
Mercieca, meanwhile, said his company would “try to persuade them” if a landlord asked to exclude potential tenants based on their race or nationality, but would otherwise refuse to give the landlords the business.
“We blacklist people who are racist, partly because they are not easy to deal with. We do not work with racists,” he said.
“The laws need to be fundamentally revised”
Mercieca referred to the company’s experience in Cyprus, Spain and Portugal, and said in other countries, rental properties were managed by third parties, meaning landlords rarely met tenants.
“It is always better when properties are managed. They are better organised and tenants do not have to deal with hot-headed owners because tenants never meet landlords,” he said, calling for such an approach in Malta as well.
Buttigieg believes that rental law needs a “fundamental overhaul” and advocates for stronger protections for both tenants and landlords.
“I would even go a step further and say there should be some kind of court that makes quick decisions in disputes between landlords and tenants,” he said.
“This is really necessary because it is a serious business. A landlord is investing his money in the property and needs protection, and at the same time a tenant is paying a good rent for the property and needs protection. I think this will solve a lot of problems.”
When asked what steps were being taken to combat discrimination in the housing market, a spokesperson for the Ministry of Housing referred to the publication of “anti-discrimination fact sheets” as one measure the Ministry was taking to address the problem.
The National Commission for the Promotion of Equality (NCPE) announced that it plans to repeat a study on discrimination in the housing market. The last study, carried out in 2012, found “numerous examples of direct and indirect discrimination in the housing market in Malta”.
Independent journalism costs money. Support Times of Malta for the Price for a coffee.
Support us
