Duties of a landlord

First and foremost, the landlord should provide a property in a good condition, free of defects that would significantly reduce its ability to be used for the agreed purpose (art. 1578 of the Civil Code). The landlord is also required to provide the safety certification and the energy certificate that establishes the required kilowatt/hour needed to maintain the premises at 18 degrees in winter and summer (as required by law). The landlord is also obliged to give the tenant receipts for all due rental payments. The landlord cannot deny the right of the tenant to make improvements on the property at his/her own expense, provided these do not lead to any damage. Finally, if the tenant is not causing any trouble the landlord cannot terminate the contract earlier than agreed upon.

Duties of a tenant

The tenant should take responsibility for the property and provide the due care in using it for the purposes as agreed upon in the contract. The tenant is also obliged to carry out minor maintenance repairs, so as to return the property in the same condition in which it was given to him/her, except for usual declines that are a result of the use of the property. The tenant also takes responsibility for any loss or deterioration during the lease, even if it is a result of an emergency and as long as they are not able to prove that such an emergency occured for reasons not attributable to them. Finally, the tenant has the duty to pay additional expenses on top of the rent such as energy and water bills. Other than knowing the legal prerequisites, a future landlord shall also have a business plan in order to make the most of their property. Here are some of our suggestions as to the successful management of a rental property. 

5 steps to rent a house in Italy

1. Type of contract

First of all an investor should decide on the purpose of the property and, thus, the corresponding target tenants and type of contract. Short-term leases are commonly signed when the tenant is temporarily situated in the area for a specific reason (for example, work placement). The advantage of this agreement is that since the rent amount is only fixed for the term of a lease, the landlord may increase the rent every time the lease is renewed. Also, he/she is entitled to change the policy, updating it based on the experience with previous tenants.

Contracts for college students are an excellent option for investors who own a property located near a college campus, because a property nearby a college can yield higher rents. Another advantage is once again the fact that the property would be occupied only for a few semesters. Moreover, the tenant would probably not have high requirements due to the fact that they would not stay long, so that it would not be necessary to make continuous upgrades and refreshments. 

The main advantage of a free contract or an agreed contract is its stability. With this kind of agreement the landlord holds a legally binding document that ensures a secure rental income for a designated period of time. Landlords often prefer signing long term leases to reduce turnover costs and avoid vacancies. However, the disadvantage of this kind of lease is that it does not provide as much flexibility as other types of rental agreements. 

To understand the specific differences among contract owners are advised to consult a lawyer, who can explain the details and peculiarities of contracts and suggest the best options based on the location and type of property in question.

2. Set the cost

Setting the cost of the rent is a vital step. The price should depend on what other rental properties are going for in the neighborhood and community. Investors should keep in mind that  potential tenants will be looking forward to deals, so the rent should be set at a competitive price. We recommend researching the market before deciding on a specific price. 

3. Tax planning

Non-residents are only taxed for their income from Italian sources, including rental income. Thus, the income must be declared to the tax authorities and duly taxed. There are two options for taxation: ordinary taxation and flat rate tax scheme (cedolare secca). Ordinary taxation is  subject to a personal progressive tax. For an income up to 15 000 EUR the tax rate is 23 %. For incomes from 15 001 EUR to 28 000 EUR it is 27%. The due tax rises accordingly and can become up to  43% for incomes over 75 001 EUR. As concerns the flat rate tax scheme (cedolare secca) this implies a fixed tax equal to 21 % of the annual rent if the rental agreement is a free contract, 15 % if it is an agreed contract and 10 % if it is a college contract. If the contract is for less than 30 days, it does not need to be registered and there are no taxes due. 

4. Hire professionals 

Turning one’s home into a rent out property may seem like a simple task, but it is important to contact real estate attorneys and accountants to make sure one is correctly abiding by tax laws, zoning ordinances, and local property rules. 

Making the property public and advertising it to the right target group is another key to successfully renting it. Here are some Italian websites which have been proven to have a stable and focused audience in the sphere of real estate rentals:

• StudentsVille – one of the most popular Italian websites for student living and housing, it gives the landlord access to a great number of students and is thus a great choice for advertising a property near colleges and universities;
• Apartments in Florence – recognizable website for the region of Florence and Tuscany, it offers a great variety of property for both short and long term rentals, luxury villas and city apartments. 
  
• Florencehouse – property management network, looking to not only advertise a property, but also provide a full circle service, including property maintenance, paperwork, taxation, and 24/7 guests assistance, all run by experienced professionals.