A free market contract is for four years renewable for an additional four-year period, in which the tenant and landlord agree the conditions between themselves. A contratto convenzionato is a three-year contract with a two-year renewal option, although the initial period can be increased to five years with no renewal option.
These new contracts replace the old rent control ( equo canone) and long-term ( patti in deroga) contracts, although these contracts remain valid until their expiry date, when they’re replaced by one of the new contracts.
Free Market Contracts
Luxury apartments ( di lusso), public housing and tourist apartments are exempt from free market contracts. If applicable, a ‘tenants and owners’ association must usually approve contracts for apartments. A contract should be registered with the local ufficio del registro to be valid.
If a landlord needs to reclaim a property before the expiration of a free market contract, he can do so by giving the tenant six months’ notice ( disdetta) in writing, but only under certain conditions. These include requiring the property for his own use, for a child who’s getting married, for an elderly parent or in-law, or to make improvements or repairs prior to selling it. However, if within a year the property isn’t used for the purpose stated in the notification, the landlord must renew the original rental contract with the same tenant or pay an amount equal to three years’ rent as compensation. Otherwise a landlord can reclaim a property only by giving a tenant six months’ notice prior to the end of the contract expiry date. If a landlord wishes to sell a property, a tenant has the first option to buy it.
A convention contract includes properties rented under national agreements between property associations and renters’ unions, who establish the rent. It’s possible to terminate the contract prior to the first expiration date, while the landlord must give a tenant six months’ notice prior to the end of the contract expiry date. A convention contract can also include short-term leases for university students and transitory workers.
The new regulations provide tax breaks for landlords and also established a national fund to help low-income families who are eligible for public housing, but because of a lack of public housing are required to rent apartments on the open market.
Although all addresses are potentially suitable for residence, some rental contracts forbid you to use an apartment’s address for this purpose. Such rental contracts are mainly used with foreigners, so that a landlord can regain possession of his property more easily should he wish to do so. Eviction of a person from his legal residence is almost impossible in Italy and landlords don’t want to take any unnecessary risks with foreigners.
This article is an extract from Living and Working in Italy from Survival Books.