The Italian rental costs vary considerably in accordance with the size and the quality of the property in question. The facilities provided on site and the accommodations’ age are taken into consideration too.
The most influential factor, however, is the location; region, city and neighbourhoods all heavily affect the rental price. Until recently, Italy was plagued with a serious shortage of rental properties due to the ‘equo canone’ (fair rent law). This law resulted in limited rents, set to the local authorities rates rather than market levels. Owners are now permitted to set the market level for rental prices, encouraging more landlords and property owners to let their properties out.
Negotiating Italian Rental Costs
The majority of Italian rental costs can be negotiable. Sometimes an agent will suggest offering rent at a reduced rate, with rental payments being tax deductible for residents.
The table below is a guide to typical current rents:
Size of Property——–(€) Monthly Rental
Bedsitter (Studio)———–300 – 900
1 Bedroom Apartment——450 – 1,100
2 Bedroom Apartment——650 – 1,500
3 Bedroom Apartment——800 – 2,000
For the Italian rental costs above, this refers to unfurnished but good quality, renovated or new properties within rural and suburban areas. Prices in major cities, especially Rome, and near lakes or resorts or landmarks can be almost twice as expensive. Furnished accommodation within exclusive residential areas can have sky-high prices.
If you choose or end up renting through an agent, you are obligated to pay the agent’s fee, usually around 10% of one month or one years rental.
So long as rent isn’t paid any more than two months in advance, the landlord can ask for a deposit up to the value of three months rent. The deposit has to be returned with interest within two months after the lease has ended or is terminated. This will be less any amount the landlord is due for damages or redecoration if you are held responsible. Although actually illegal, many tenants don’t pay their last few months’ rent and instead surrender their deposit.
Italian Rental Costs : Extra Costs
Rent is usually paid a month in advance with the requirement to pay by direct debit or bank deposit being strictly forbidden. Alongside the rent, tenants in an apartment are obliged to have compulsory insurance and pay service charges. The tenant also has to follow ‘regolamento’ (house rules), of which we advise you to obtain a copy from your landlord.
Service charges cover attributes such as heating, hot water, rubbish collection, upkeep of any gardens or grounds, use of lifts and lift maintenance, communal lighting and any concierge or caretakers services. The tenants typically pay electricity, gas and water.
It is advisable to check whether rent is exclusive or inclusive of charges, although it is usually stated in any adverts for the property. Any service charges are calculated on a monthly basis and are usually paid alongside the rent. These costs are usually higher if the building is newly built compared to older buildings. The costs can fluctuate between buildings and area from only €20 up to €200 per month on top of rent.
It is advisable to ask for a copy of previous telephone, gas, water, electricity and service charge bills, also to check that the previous tenant has not left you with any outstanding expenses, as you could be held accountable for any outstanding debts.
For more information on Italian Social Security, Italian Payroll, Working in Italy or Contracting in Europe visit the Euro Accountancy & Finance Services website.