How Much Does It Cost To Be a Tenant? Here’s A Breakdown
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If you’re an aspiring tenant, one of the first question you’ll want to ask to a real estate agency is: what are all the related costs I’ll have to face, in addition to the monthly fee?
Fair enough, it’s important to understand how much will the house-you-just-fell-in-love-with cost you in the end.
No panic, our lovely rental consultant Elisa prepared a quick and super straightforward breakdown of costs that will give you the big picture of all expenses.
1. Deposit
In addition to the payment of the first monthly fee, the deposit must be paid upon signing the lease. The deposit is equal to - from 2 to 3 monthly fees (it depends on landlords) and it’s retained by the landlord until the end of the lease. Before being handed over to the tenant, at the deadline, a general check on the apartment is made to verify that the property is still in good condition and there has been no damage.
The deposit, in whole or in part, can be retained to repair any damage caused by the tenant or to pay any outstanding and unpaid utilities.
2. Registration costs (when expected)
The cost for the registration of the contract is paid by both the landlord and by the tenant.
In case of application of the "Cedolare Secca", there are NO registration costs; in the event that the owner opts for the registration tax regime, the costs that the tenant must pay are:
half the registration tax (which is 2% on the annual amount, to be divided 50-50 between landlord and tenant);
the stamp duty for the registration.
3. Agency fee
The commission for the real estate agency in case of rent is the 10% + VAT on the annual amount.
The fee is paid by both the tenant and the landlord.
4. Condo fees
Required only in case of apartments in complexes with an administrator, or in case there are shared areas. The condo fees are divided between the landlord and the tenant: the division is not 50-50, rather there’s a specific chart that sets the costs distribution.
5. Bills
Finally, there are some expenses for all the utilities, which are electricity, gas, internet, water and rubbish. All this is charged to the tenant.
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