Since 1999, there have been two different kinds of Italian rental contract. The first is a ‘Contratto a Libero Mercato’ (free market contract) with the second being a ‘Contratto Convenzionati’ (a convention contract) containing pre-determined conditions.
A free market Italian rental contract has a duration of 4 years, with the option to renew for an additional 4 years, for which the tenant and/or landlord will set and agree conditions between themselves. A convention contract is a 3-year contract with an optional 2-year renewal, however the initial period can be increased to 5 years with no renewal period.
Italian Rental Contract : Free Market Contracts
‘Di Lusso’ (luxury apartments), public housing and apartments for tourists are exempt from free market contracts. If applicable, a ‘tenant and owner’ association usually must approve contracts for flats or apartments, with contracts being registered with the local ‘ufficio del registro’. They must be registered with this body in order to be valid.
Should a landlord need to reclaim a property before the free market contract has expired, the landlord can do so by issuing a ‘disdetta’ (six months notice) in writing; but only under certain and very strict circumstances. The accepted reasons include using the accommodation for his/her own use, for giving lodging to an elderly parent or in-law or to undertake improvements and repairs before selling the property on.
The landlord has to renew the original contract of rental if within a year the proposed reasoning in the notification hasn’t been undertaken. The landlord must then renew the original contract with the original tenant during that specified time, or pay out an amount equal to three years rent as a compensation package.
Else, a landlord can only reclaim their property by giving a tenant notice of six months before the end of the contracts expiry date. The tenant also has first choice to buy the property should the landlord wish to sell.
Italian Rental Contract : Convention Contract
A ‘Contratto Convenzionati’, or Convention Contract, covers properties that are rented under national agreements between property associations and renters unions.
It is possible to dismiss the contract before the first date of expiration, as long as the landlord delivers six months notice before the end of the contracts expiry period. A Contratto Convenzionati can also cover short-term leases for students attending university or college alongside transitory workers and expatriates.
Even though all addresses are theoretically suitable for residence, some rental contracts will stop you from using an apartments address purely for this purpose. These tactics are usually employed with foreigners, to ensure that a landlord can easily reclaim possession of their property if required. Evicting an individual from their legal residence is near impossible in Italy due to the set laws; landlords therefore don’t want to take unnecessary risk in relation to foreigners.