Landlords ‘not racist,’ they want to ‘protect and maximise their investment’ – Alliance CEO

Alliance Real Estate CEO Michael Bonello has clarified that landlords are not racist, as they primarily want to protect their investment.

This came after on Tuesday, the real estate agency accidentally published internal comments instead of a property description on one of its listings.

The comments showed restrictions that “no Pakis, Indians, Arabs, and Filipinos” were to be accepted. This, naturally wreaked havoc as it is illegal for anyone to refuse to offer a service based on skin colour, nationality or origin.

On Friday (today), Mr Bonello penned an opinion piece on Times of Malta, stating that “landlords are not racist. They simply want to protect and maximise their investment, just as any other investor would with any other asset.”

He cleared that the “one-off incident” was an oversight by a junior employee but nonetheless highlights broader issues with Malta’s housing market, that merit “serious and mature discussion.”

In an earlier article, a spokesperson told Times of Malta that Alliance’s database has an internal comments section where the specifications are listed so that property advisors don’t check with the landlord every time. In this case, the comments were written in the wrong section, making them public for everyone to see.

Mr Bonello remarked that he has been in the real estate industry for more than 25 years and has since worked with thousands of property owners seeking to make a return on their property through the rental market.

“Brick and mortar investment remains a fundamental pillar of our economy, however it is not uncommon for landlords to have concerns about the type of tenants they will rent out their property to,” he said.

Mr Bonello shared a number of concerns landlords have such as whether they will honour their contract and payments, or whether they would trash the property leaving them with a hefty cleaning bill, or worse.

The “legitimate concerns” are commonplace in the rental market, he added. “So, no, this is not a racial issue. It is a business matter and requires adequate policies to address it,” he continued.

He clarified that while housing discrimination undermines the principles of equality and fairness, it is also essential to address the legitimate concerns of landlords who have a right to ensure their property is respected.

He recalled how as President of the Real Estate Section within the Malta Development Association he has already been involved in talks with policymakers on the issue.

“What we are calling for is a comprehensive framework that can address these concerns, providing more protection for landlords and ensuring standards are upheld by tenants,” he remarked.

He referred to European countries, whose landlords can conduct thorough tenant screenings – including credit checks and rental history reviews – while adhering to anti-discrimination laws.

Furthermore, he expressed his belief that Malta could introduce a system whereby tenants are ranked or reviewed by landlords.

Mr Bonello emphasised that having a new national framework on lease agreements, with clear terms regarding tenant behaviour, maintenance responsibilities and eviction procedures can minimise the disputes, protecting both landlords and tenants alike.

He also believes that such agreements should also have provisions for regular property inspections, “albeit with adequate prior notice.”

Nonetheless, he underscores that this should not price out renters. “In the UK, the private sector has innovated to introduce an insurance policy that acts as a substitute for hefty deposits that would otherwise price out certain tenants.”

Ultimately, Mr Bonello noted that this will largely boil down to enforcement and the will ensure that the new rules and requirements are being respected.

“Given the size and importance of the rental market to Malta’s economy, I believe it’s time to start taking this into consideration,” he said.

In addition, he stated that educating both landlords and tenants about their rights and responsibilities can also help prevent discriminatory practices and foster a more inclusive housing market.