Rent like a Pro in Italy: a guide for both landlords and tenants

Renting a home in Italy can be an exciting adventure, filled with picturesque landscapes, rich history, and vibrant culture. Whether you're planning to stay in the bustling city of Rome, the serene countryside of Tuscany, or the charming canals of Venice, understanding the rental process is key to ensuring a smooth and enjoyable experience.

On the other hand, if you have been so lucky to inherit a property from your family in Italy, or fell in love with the country, bought a flat here and would like to make some profit from it, let me guide you through the process. Here is a comprehensive guide to renting like a pro in Italy for both landlords and tenants.

Understanding the Rental Market

Before diving into the rental market, it's crucial to research the areas you're interested in. Italy offers diverse living experiences, from the metropolitan lifestyle of Milan to the coastal tranquillity of the Amalfi Coast. Consider factors like proximity to amenities, public transportation, safety, and lifestyle preferences.

Rental prices in Italy vary significantly based on location. Major cities like Rome, Milan, and Florence tend to have higher rental costs compared to smaller towns and rural areas. For instance, renting a one-bedroom apartment in Rome's city centre can cost around €1,200 per month, whereas in a smaller town, it might be as low as €400 – if you are thinking of making profit out of your property, the location of it is fundamental.

Finding the Perfect property

The best and most common online platforms where agencies and landlords advertise are Immobiliare.it, Casa.it, and Idealista.it . These websites offer extensive filters to help narrow down your search based on price, location, and property type. Additionally, they often include photos and detailed descriptions of each property.

Working with a local real estate agent can be immensely helpful, especially if you're not fluent in Italian and they can speak English – not all agents can!

Agents can provide valuable insights into the local market, assist with negotiations, and handle much of the paperwork. Keep in mind that, in Italy, agents typically charge a fee to the tenant and one to the landlord, which can be equivalent to one month’s rent or 10% of the annual rent as a compensation for their services.

The Rental Process

When applying for a rental property it is very important you already have all your documents sorted, the mandatory ones are:

• A valid passport or ID
• Proof of income or employment
• A tax code (codice fiscale), which you can obtain from the Italian Revenue Agency (Agenzia delle Entrate)
• Bank statements

If you are a landlord, the documents required are:

• A valid passport or ID
• Proof of ownership of the property
• A tax code (codice fiscale), which you can obtain from the Italian Revenue Agency (Agenzia delle Entrate)
• EPC for lettings (Energy Performance Certificate)

Rental Contracts

Italian rental contracts, known as "contratto di locazione," can vary in length and terms. The most common types are:

• 4+4 Contract: Standard long-term lease, renewable after the initial 4-year period. The landlord is usually charged 21% over the annual rent they receive, there is no limit to the asking rent price and can agree on an annual rent increase according to the ISTAT index.
• 3+2 Contract: Offers more flexibility, with a 3-year initial term followed by a possible 2-year extension. The landlord has a more convenient deal for their taxes: 10% over the annual rent, but they need to keep the rent within the limits set by the regional agreement and cannot apply any rental increase.
• Transitory Contract: Short-term lease for up to 18 months, suitable for temporary stays, typically students or young professionals on the move. It has the same tax deal for the landlord as the 3+2 contract.

Bear in mind, there is no such thing as a break clause in Italy and only the tenant can break the contract before the end of the initial term, usually giving 6 months’ notice – this can be negotiated and reduced.

Make sure that the contract is registered with the local tax office to avoid legal issues, usually the landlord takes care of that and you split the costs. Both parties must sign the contract, and you should get a receipt of the registration. It is also mandatory for the landlord to share a copy of the EPC (Energy Performance Certificate) and, if you the tenant is not an EU citizen, they must also warn the police of their arrival and length of stay.

Deposits and Fees

Typically, landlords require a security deposit equivalent to 2-3 months' rent. This deposit is refundable at the end of your tenancy, provided there are no damages to the property. For this, it is very sensible to sign an inventory at the beginning of the tenancy, possibly including pictures – not everyone does.

Additionally, be aware of other fees, such as:

• Agent fees
• Registration fees for the contract
• Utility setup costs

Settling In

Setting up utilities in Italy can take some time. It's common for landlords to handle the initial setup, but tenants are usually responsible for ongoing payments. Make sure to clarify which utilities (electricity, gas, water, internet) are included in the rent and which need to be arranged separately. Make sure not to forget the Ta.Ri, which is the waste tax and is mandatory for every resident in Italy, the landlord cannot set this up for the tenant, the latter is the only responsible for it.

For tenants

Familiarize yourself with local regulations regarding waste disposal, noise, and building maintenance. Italy has strict recycling laws, and improper disposal of waste can result in fines.

Living in Italy is not just about finding the right home; it’s about embracing the Italian way of life. Take the time to learn the language, explore local markets, and participate in community events. This will enrich your experience and help you feel at home in your new surroundings.

For landlords

It can be quite daunting to face Italian bureaucracy whilst trying to get the best out of your property, especially if you are away from the country or don’t speak the language. That’s why it is important to rely on a trusted Estate Agent who can help you with the local regulation.

Renting a property in Italy can be a rewarding experience if you approach it with the right knowledge and preparation. I hope this guide will help you rent like a pro in Italy.

Buona fortuna!