Rentals in Italy: A Focus On The So Called “Temporary Contract”
Image by Karolina Grabowska via Pexels
Today, with our Rentals Consultant Elisa, we dive into the so called “temporary contract”, the one that is involved when it comes to rent a property for a provisional reason: let’s see in detail what this contract entails and how it’s regulated in Italy.
DEFINITION
A temporary contract is a rental agreement used for temporary/non-tourist needs: this happens for example when someone is waiting for a more stable accommodation or when there’s the need to satisfy a short-term work mobility. Likewise, it can be the Landlord to need this specific contract: he may need to rent out the property for a transitional period if, at the end of that period, the house will have to be renovated or sold.
With this type of contract, a subject (Landlord) grants, for a limited period of time and for a transitory need, the use of a property for a another subject (Tenant), upon payment of a monthly fee.
This contract always includes a specific clause that clearly identifies the transitory need of the Landlord and/ or the Tenant.
To fit the needs of both the Landlord and the Tenant, these contracts must have a duration of:
no less than one month;
no more than 18 months.
After the deadline agreed between the parties the contract is considered closed without the need for any communication, either from the Landlord or from the Tenant. If at the end of the contract the “temporary” reasons/needs are still in place, the parties must confirm the interest in continuing the lease and, essentially, sign a new contract.
DURATION
A transitory contract can last from a minimum of 1 month to a maximum of 18 months - the latter is considered as the maximum period of time that matches a transitory need.
As a result, if a Tenant needs a house for two years due to an employment contract, the best solution would be to stipulate one of the "residential" contracts (4 years + 4), always bearing in mind that the the Tenant has the right to cancel at any time with an advanced notice.
RENEWAL
By definition, a temporary contract is not renewable because it basically satisfies a specific need that is limited in time. As a result, at the deadline, the contract expires automatically, without the need (both for Landlord and Tenant) to give the termination notice by means of registered mail.
If the Tenant still needs the property for a few additional months, he/she can proceed with a new contract lasting only 4/5 months. Alternatively, as said above, the solution is to turn the temporary contract into a 4+4 years one.
If the “temporary reasons“ have been asked by the Landlord, however, it’s necessary that the latter confirms them before the expiration date; otherwise, if the Tenant wants to stay in the property, the contract can become - based on the ordinary regulation/legislation - a contract with a duration of 4 years + 4 years.
UTILITIES
Usually with a temporary contract it’s possible, for the Tenant, to leave all utilities (electricity, gas, water and rubbish) in the Landlord’s name, this way avoiding expensive transfers.
In that case, anyway, it’s important to write a clause in the contract specifying the reimbursement of expenses due by the Tenant, within xx working days from the receipt of the bills by the Landlord.
CHANGE OF RESIDENCE ADDRESS: YES OR NOT?
From the moment you live permanently in a place and with a regular title to do that (and a rental contract is a regular title) it’s your right to apply for residence at the registry office of the Municipality, which will take care to verify if you really live there.
TAKEAWAY
To conclude:
Tenants could establish their residence temporarily in the property for the duration of the lease, except for different agreement with the Landlord, without this negating the temporary requirements of the contract;
There’s no risk of transformation of the rental contract into a 4+4 years one, but only if the requirements of temporary are clearly expressed.
Looking for a property to rent around Lake Como?