Counterfeit Contracts
However strange it may sound, it is common for students to rent property in Italy without a rental contract. Many students find accommodation and pay rent without any kind of written contract: usually a handshake is taken as sufficient guarantee. Although the vast majority of tenants will not encounter any serious problems with this arrangement, known as a 'counterfeit contract', it should be avoided if possible because you have no security.
The following situations are classed as counterfeit contracts:
- 'False comodato' – literally, 'false loan': the landlord agrees to allow the tenant to live in the apartment without paying rent, but in fact charges a monthly rent which is paid in secret. The tenant pays additional costs for utilities, as set out in a simple contract. The tenant is in fact paying both rent and extra costs, but the landlord is not required to pay income tax on the money received. There are no set terms for the rental, so the agreement is easily terminated.
- 'Second house' – the tenant declares to the tax office that they are living in the rented property only part-time on a 'tourist basis', but are in fact there full-time. There are no set terms for the rental, and so the agreement can easily be terminated.
- 'Black payment' – the contract states that a certain amount of rent is due, but the landlord actually demands more money. The landlord only pays tax on the stated rent, and earns more money illegally.
- 'Foresteria contract' – this is typically a contract for guests, but is often used by companies to rent properties for their interns and/or trainees. It is often exploited by landlords, who adapt it to earn more money and offer tenants less favourable terms.
- 'Leasing in exchange for services / performances' – this contract states that a tenant is allowed to stay in the property in exchange for maintaining the building and doing work around the house. Some landlords will agree to this contract but in fact charge rent which is paid in secret.
