Renting an apartment in Italy comes with its own set of challenges. Many foreigners are surprised by the overall complexity of the process, and still others by the idea that landlords are extremely careful about who they choose to rent their property out to. A client of mine recently remarked “I’ve never had so much trouble giving someone a security deposit before!” Add to this the challenges imposed by the language and legalese used in Italian rental contract, and it’s easy to see why a foreigner may have difficulty renting a property in Italy.
Let’s explore a few key elements to keep in mind when looking for a residential rental property in Italy. When reading this article, keep in mind that the rentals being discussed are traditional rentals, not holiday rentals for tourists.
Rental Process
As mentioned above, most landlords are extremely picky about who they put in their property. You can expect to be asked to provide a number of documents including you ID, Codice Fiscale (Italian Tax Code), Permesso di Soggiorno (Residence Permit), most recent pay stubs and work contract (or other documents related to your income, for example pension income statements), and bank account statements. This information will be provided to the real estate agent who showed you the apartment or directly to the owner if no agent is involved.
After providing this information, the landlord will decide if they want to proceed with you as a tenant. Although the documentation is important, a lot of their decision is based on their (or the agent’s) impression of you during the visit to the property. Dress well, smile, and ask intelligent questions.
If the landlord decides to proceed with you as a tenant, you’ll typically be asked to make a proposta (formal offer) to rent the apartment. The offer is not the rental contract but will establish the basics of the contract, specifics of the property, monthly rental fee, security deposit, and the timeline for the rest of the rental process. You may also be asked to pay a deposit at this point to guarantee that you won’t back out on the proposal. This deposit is normally returned to you when you sign the formal rental contract (and is forfeited in case you decide to withdraw).
If the landlord accepts your offer, you’ll proceed to the next phase, which is the contratto (formal rental contract), following the timeline already established in the offer. This contract formally establishes all of the contractual obligations between landlord and tenant. On the day you sign the contract, you will need to pay the agreed upon deposito cauzionale (security deposit), agency fees (if an agent was involved), and any other sums agreed upon (typically the first month’s rent and HOA/Condo fees). However, you may not get the keys to the property at this point – the delivery of the property to the renter will follow the timeline established in the offer and subsequently the contract.
The rental contract must be registered with the city government and the owner must provide the tenant with confirmation of the registration.
The entire rental process can last well over a month (or more!), even for an apartment that is available ‘immediately.’ Prospective renters should keep this in mind and plan their strategy accordingly.
Deposits and Fees
Security deposits in Italy are typically 2 – 3 months rent. However, there are other situations where the landlord will require a higher security deposit or even a fideiussione bancaria (bank guarantee).
If an agent/real estate agency is involved, there will be a fee for the renter to pay. Many agencies charge 10% of the annual rent PLUS IVA (sales tax), although renters in some of the larger cities like Milan have seen agency fees as high as 15% plus sales tax!
Another ‘hidden’ fee to consider is the contract registration fee. This fee isn’t always owed depending on the type of taxation structure chosen by the landlord. When it is owed, the normal amount due is 2% of the yearly rent. This cost is split equally between the landlord and the tenant and is due every year.
Leases: Types, Renewal, and Potential for Eviction
Italian law specifies a limited number of lease types possible for residential properties. The most common of these rental contracts are the 4+4 (4 year initial period with an automatic 4 year renewal) and the 3+2 (3 year initial period with an automatic 2 year extension. What’s the difference? The 4+4 contract is the contract used for rentals at canone libero (market rate – price determined by the landlord), while the 3+2 is used for rentals at canone concordato (rent controlled rate), which is established through an agreement between the city and renters organizations. It is also possible to see a contratto transitorio (short term lease) which can have a duration of 30 days up to 18 months. These contracts can be at market rate or rent controlled, depending on the city, and the rental contract must specify a valid reason for using the contract (they cannot be used in every circumstance).
As stated above, the classic 4+4 and 3+2 contracts provide an automatic renewal. If no communication is received from the landlord within before the end of the second period, the contract is understood to automatically be extended (for an additional 4 or 2 years, depending on the contract) at the same contractual conditions stipulated in the rental contract. Short term lease contracts do not provide the possibility for renewal, therefore a new contract would be needed.
Potential renters should be aware that there is a potential for eviction by a landlord even in the presence of a valid contract, with rent paid on time, and problems with the rental situation. Wait, how can that be legal? We have to again look to Italian law, which provides several options for landlords to legally evict tenants in these situations:
- After the initial period of the contract (the first 4 or 3 years, depending on contract type), the landlord is allowed to evict a tenant by giving 6 months notice via certified mail in the case that:
- The landlord needs the use of the property for his family;
- The landlord is a business or a public entity that wants to rent the property for public or religious use (change of use);
- The tenant has the possibility to move into another property that they may own or rent within the same comune (city/municipality);
- The tenant is not regularly occupying the property (without justification);
- The property is badly damaged or located in a building which is badly damaged and needs reconstruction/serious repair;
- The owner wants to sell the apartment and doesn’t have other properties besides their own residence.
- During the second (or successive) period of the contract, the landlord is allowed to evict a tenant for whatever reason, again via certified mail with 6 months notice.
Eviction is of course always a possibility in the case that the renter fails to consistently pay rent.
Unfurnished Apartments
The phenomena of renting a COMPLETELY unfurnished property (without a kitchen and possibly without bathroom fixtures) is something unheard of in many places in the world. However, some Italian owners take pride in the investment they have put into their kitchens and bathrooms and choose to take them with them when they leave. The rise of IKEA and other modular furnishing giants has drastically reduced the number of these fully unfurnished properties on the market, though they do still exist. Potential renters should be sure to ask questions about which furnishings are and aren’t included and get this information in writing in the contract. In the case that the kitchen and/or bathroom aren’t included, it’s often worth asking the landlord or previous tenant if they might be willing to sell you their kitchen and/or bathroom in order to avoid the hassle of having to buy new.
Maintenance & Repair
Another aspect that may seem strange to potential renters from abroad is the fact that in Italy, the landlord is NOT responsible for every type of repair and maintenance of their property. In fact, it’s the tenant who is most often required to foot the bill. Tenants will be expected to pay for the yearly service of the furnace, to repair or replace furniture that may be included in the rental, to repaint, and even to repair appliances that may be included in the rental. The landlord, on the other hand is typically responsible for the ‘big picture’ items, ie replacing the furnace or replacing the refrigerator that was included in the rental. In other situations, the landlord and tenant may split the cost, depending on the situation and the type of repair.
HOA/Condominium fees should also be included in this category. Tenants will be expected to pay these monthly fees (directly to the landlord, who will pay the HOA/Condo association). Tenants therefore also have a right to see the yearly balance of the HOA/Condo association and to expect a refund if too much was paid (or to be asked to pay more if not enough was paid). Landlords, on the other hand, are required to pay the ‘big picture’ items, for example roof repairs or external building work.
High HOA/Condo Fees
On the vein of HOA/Condominium fees, it should be noted that these fees can be quite high compared to other parts of the world. The monthly amount is determined by the services provided by the building. Does the building have an elevator and is the property on an upper floor? Is the heating centralized? Is there a doorman? Is cleaning of the public spaces (stairs, corridors, etc) done daily? Answering yes to any of these questions ensures higher fees for potential renters.
Managing Expectations
Researching residential rentals in Italy takes time, energy, and patience. Potential renters may find themselves frustrated in this process because the properties on offer may not meet their expectations of the ideal situation. While many property owners in Italy take pride in their properties and maintain them well, that doesn’t necessarily translate to the modern, updated properties on offer in other parts of the world. Properties may be clean, well maintained, and completely functional, but look outdated or contain fixtures and furnishings that seem ancient. Properties may contain quirks like uneven flooring, strange nooks, doorways to nowhere, or kitchen and bathroom layouts that leave potential renters baffled as to how someone could have made those choices.
It’s important to remember that your first rental in Italy may not be the perfect rental, but simply a stepping stone to get you to that perfect place in the future.
To overcome these challenges, it’s advisable to connect with an experienced, licensed, and bilingual real estate professional who can guide you through the process.
