Understanding the Rental Contract
The rental contract is also called a lease contract. It is agreed by both the landlord (renting out the property) and the tenant (staying in the property and paying rent). There are two main types of rental contract: 'pre-accorded' and free.
Pre-accorded contracts are agreed on by 'Confedilizia' (the association of structural engineers) and by the landlords' and tenants' associations. The contract lasts for three years, and there is a set limit on the monthly rent that can be charged. This contract entitles the signatories to a thirty percent reduction in income tax ('Irpef' in Italian) and a registration fee of two percent, based on just thirty percent of the annual rent rather than the total annual rent.
If the signatories agree to renew the contract it will be renewed every three years. If an agreement cannot be reached, the existing contract continues to be valid for a further two years after which the landlord is able to terminate the contract. This type of rental contract is commonly used in Italy's poorer areas, and in those with only a few rental properties.
It is possible to arrange a temporary pre-accorded contract which enables tenants to rent a property for up to eighteen months. This contract is particularly well-suited to interns, trainees and students who are in Italy for short periods of time. You will typically need to prove that you are staying in Italy for a limited period of time, because many landlords offer to reduce prices for temporary leases if they are keen to rent without being tied to lengthy rental terms. Rent will however still be agreed upon by the Confedilizia and the landlords' and tenants' organisations.
The second type of rental contract available is the free contract. These contracts offer tenants the chance to negotiate on rental costs, rent payments (such as monthly or annual payments) and legal rights. Contracts run for four years, with automatic renewal when appropriate.
If the contract has been renewed a second time, the landlord or tenant can ask for contractual changes to be made by sending a written proposal by registered mail. The other party must answer this proposal within two months of its arrival; if not, the contract will be renewed without changes. These free contracts are not valid for properties of particular historical or artistic importance.
For more information on rental contracts, see:
