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RENTING

What you need to know about navigating Italian rental contracts

If you're looking for an apartment in Italy, lease agreements might not be what you’re used to. Here's what you need to know before you sign.

What you need to know about navigating Italian rental contracts
Renting an apartment in Italy is likely to be a very different process to anything you've encountered elsewhere. Photo by Giulia Salvaterra on Unsplash

If you’ve managed to find an apartment in the dog-eat-dog world of Italian real estate, congratulations — now it’s time to figure out exactly what you’re signing when your landlord asks you to put pen to paper on your brand new lease agreement.

Unlike the United States, Canada, or the United Kingdom, Italy’s rental laws place far more power in the hands of the renter — as soon as a contract is signed, that is. It’s one reason finding an apartment in Italy can be anything but easy.

But even if Italian laws are good to tenants, it doesn’t mean there aren’t things to watch out for when you sign your first lease.

Here’s our guide to successfully navigating the world of Italian rental contracts.

Finding a home

Unlike other countries, where you might find a single rental agency managing an entire building of flats, there are very few big rental companies in Italy, and most apartments are rented by owners. For that reason, it’s often easiest to find a place to live through a rental agent or broker.

It’s not uncommon for these brokers to receive a commission for dealing with your paperwork — as much as 12 percent, or one month’s rent.

READ ALSO: How can I find an apartment to rent in Rome?

Generally, you’ll need your ID, Italian fiscal code (codice fiscale), and proof of income (referenziati) for your agreement. Non-EU citizens may also be asked to provide proof of legal residency.

You’ll also usually need to pay a security deposit, which can run into the thousands of euro. By law, security deposits can’t be more than three times the monthly rent.

While looking, you might want to keep an eye out for apartments that are ‘arredato‘, or furnished. In Italy, an unfurnished apartment really does mean unfurnished — it’s likely to come without cabinets, appliances, or light fixtures.

Furnished apartments, meanwhile, are often reserved for short-term contracts.

Short-term contracts (Less than 3 years)

Of course, even short-term contracts can often seem eye-wateringly long to nomadic expats used to the 12-month leases common elsewhere in the world.

Italian rental contracts are designed to protect the tenants, meaning most guarantee your right to renew your rental agreement by default.

At the very shortest end of the rental agreement is the lease for tourist use (contratto per uso turistico) and the transitory lease (contratto di locazione ad uso transitorio). These leases can range from a few days up to 18 months, but come with important caveats.

Apartments in Milan, Italy.

Photo by Miguel MEDINA / AFP

Unlike other leases, these agreements are not renewable, and can’t be used to establish residency. To sign a transitory lease, you’ll need to specify a specific reason and duration for your stay, like an apprenticeship, short-term contract, or degree program.

The upside of these contracts is you don’t need to give notice to your landlord to leave at the end of your contract.

READ ALSO: Do renters in Italy have the right to keep pets?

If you’re a student attending a university, you may also be able to find a student lease (contratto di locazione a favore degli studenti universitari). These leases last between six months and three years. But unlike transitory leases, they automatically renew at the end of the contract.

That means you must give notice to your landlord before ending the agreement — usually between one and three months. You may also be required to maintain an official residence in another city.

Long-term contracts (3+ years)

Most rental agreements in Italy fall into the remaining two categories we’ll call determined rent (canone concordato, sometimes called “conventional”) and negotiated rent (canone libero, sometimes called “unrestricted”).

Determined rent contracts are shorter than negotiated rent contracts — they last for three years and guarantee the option of extending for two more. For this reason, they’re sometimes also called “3+2” contracts.

But unlike negotiated rent contracts, your landlord doesn’t get to choose how much you pay in rent. Instead, they’re given a narrow range established by the local landlord-tenant board or municipality, based on details like the age of the building, its neighborhood, and whether it has a parking space.

Landlords get a nice tax break for renting in this category, and you’re accepting a shorter contract, so the rent is always below market rate. These agreements are often used for public housing, and as a rule, you’re not allowed to sublet.

READ ALSO: Moving to Italy: How much does it really cost to live in Milan?

If you’re planning to move or don’t want your tenancy to automatically renew, you need to notify your landlord, usually by registered mail (email won’t count). Exactly how far in advance will be specified by your rental contract and can be negotiated. But usually, it’s a full six months — so make sure to plan ahead.

The last category is the most common. Negotiated rent contracts allow your landlord to set their price, but they have to let you sign on for a full four years, plus the option to automatically renew for another four. They’re sometimes called “4+4” contracts for that reason.

Landlords can only prevent you from renewing these contracts in specific cases established by law — for example, if they’re selling the property or moving into it themselves. When you imagine being locked into renting to someone for eight years, you might understand why some landlords are hesitant to rent to strangers!

Found an Italian apartment? Make sure you know what your rental contract contains before you sign. Photo by Romain Dancre on Unsplash

In general, most lease agreements will fall into this category, but there are some regional differences. According to Italian real estate site Gabetti, there are almost no determined rent leases in Milan — but in Rome and Genova, nearly 60 percent are 3+2 leases, while negotiated rent leases account for just 26 percent and 20 percent of apartments respectively.

It’s important to remember that in all these rental categories, there’s usually some room for negotiation on the rent.  If you’re feeling bold or have a good agent, you might also negotiate other details, like the amount of notice you need to give before exiting your tenancy, whether you’re allowed pets, or whether you’re permitted to sublet.

What your contract should contain

When the time comes to put pen to paper, it’s important to look over your agreement and make sure all the details are there.

Most important is that it includes your and the landlord’s personal details, and specifies the total monthly rent and any extra community costs, like condo, elevator, or garbage fees.

READ ALSO: How to change your registered address in Italy

It should also detail the amount of your deposit, and explain how to terminate the contract. You’re also supposed to receive an energy performance certificate or attestato di prestazione energetica.

After you sign, your landlord must register the contract with the regional office within 30 days for it to become legally binding, and notify police of your residency within 48 hours. It’s reportedly not uncommon for landlords to dodge this requirement to avoid paying taxes, sometimes offering discounted rent in exchange.

Lastly, your contract should outline your obligations as a tenant for upkeep, and any restrictions — like prohibitions on subletting or pets — that you should be aware of.

Your rights as a tenant

Once you’ve signed a contract, the law is on your side. Landlords cannot arbitrarily evict tenants without compensation, even for failure to pay rent — and the process can take years to complete.

As a tenant, you have a right to a property in liveable condition, with electricity, water, and heat — though you are responsible for basic maintenance.

Your rent can’t be changed from the amount specified in the contract for the full duration of your tenancy, except to account for inflation.

READ ALSO: Can my landlord legally increase my rent in Italy?

For longer term contracts, if your landlord decides to sell, you have the right of first refusal to buy it. And if your landlord doesn’t renew your 4+4 contract because of major renovations, you get first dibs if it returns to the market afterwards.

Landlords must request permission to access the property, and you’re allowed to refuse any renovations that prevent you from using the property. If renovations continue for more than 20 days, you may be able to demand a discount on your rent.

You’re free to make cosmetic changes of your own, like painting the walls, as long as they can be reversed when you leave. In general, it’s good practice to notify your landlord of these changes.

Housing discrimination

Of course, all those rights only kick in after you’ve signed a contract — and for some people more than others, getting to that stage can be the hardest part.

Italian and European law, in theory, protects tenants from housing discrimination on the basis of race, religion, or sexual identity. But landlords have a competing right to “negotiating autonomy” — meaning no one can force them to rent to someone they don’t like.

One study in Italy found significant discrimination against renters with Arab or Eastern European names, though it varied from place to place across the country. On the other hand, in 2000, an Ivorian man won compensation from a Milanese court after a landlord withdrew their offer to lease a flat after learning of his country of origin.

Some landlords may refuse to rent to single people, people needing accommodations for a disability, or people with pets. While an Italian court decided homeowners have the right to keep dogs, renters have no such rights.

If you feel you’ve been the subject of housing discrimination, you may be able to seek assistance from national tenants’ rights organizations, like SUNIA, SICET, or ANIA.

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MOVING TO ITALY

How can you find an apartment to rent in Milan?

With its thriving job market and international allure, Milan is one of the most popular Italian cities for foreigners to move to, but finding a place to rent can be complicated.

How can you find an apartment to rent in Milan?

With its wealth of job opportunities and international appeal, Milan is one of the most popular Italian cities among foreigners.

The northern economic powerhouse is home to over 475,000 foreign nationals (around 14.7 percent of the city’s total population), including ​​a sizeable group of native English speakers.

But high demand for accommodation, high prices (monthly rent in the city comes at an average of around €25 per square metre – that’s over €12 above national average) and housing shortages all make finding a place to rent a challenging task.  

Italian rental contracts

Before actually starting to look for an apartment, it’s generally advisable to get familiar with Italy’s most popular rental agreements, or contratti di affitto in Italian. 

Excluding tourist lets (contratti turistici), which range from a minimum of one day to a maximum of 30 days, the shortest available rental agreement is the transitory contract, or contratto di locazione ad uso transitorio

This lasts a minimum of one month up to a maximum of 18 months, and comes with an important caveat: you’ll need to specify and prove that you have a specific, non-tourism-related reason for your temporary stay, like an apprenticeship, a short-term work contract, or degree program. 

If you’re a student attending a university, you may also be able to sign a student contract (contratto di locazione per studenti universitari), which can last between six months and three years.

Two tenants pictured inside their flat in January 2021

Two tenants pictured inside their flat in January 2021. Photo by Ludovic MARIN / AFP

Finally, if you’re looking for longer-term agreements, you have two main options: 

  • Unrestricted contract (contratto a canone libero). This lasts for four years, with an automatic option to renew for four more. The rental price is freely set by the landlord.
  • Determined contract (contratto a canone concordato). This lasts for three years with an automatic option to renew for two more. Rent in this case is set by the relevant municipality (or comune) and cannot be negotiated.

For further info on both of the above contracts, see our article on the topic.

Regardless of which type of contract you sign, you should always make sure there’s a clause that allows you to move out after a specified notice period (this is usually a full six months).

Using an agency

Once you’re familiar with the types of contracts available, you can start your search. 

Milan has plenty of agenzie immobiliari that can help you find your future home, with some specialised in assisting international customers (for instance, Renting Milan).

These agencies will do the work of finding and connecting you with potential properties, and negotiate the terms of the contract on your behalf. They may also know about some properties before they hit the open market, giving you a leg up on the competition.

But there are some downsides too. Properties let through rental agencies can be more expensive, as the owners must cover the costs of their own fees to the agency.

READ ALSO: How much does it cost to live in Milan in 2024?

Further, rental agencies will generally take a commission equivalent to one or two months’ rent from the tenant, which can make initial expenses rise very fast when added to the apartment’s security deposit (usually two months’ rent).

Searching online

If agency fees look a little too steep – or if you just want to explore every option – there’s an increasing number of online rental portals that you can check out.

These sites often offer a mix of properties proposed by rental agencies and apartments rented directly by owners. Some of the most popular ones for renting are Idealista, Immobiliare, Casa and Bakeca

All work more or less the same way: select your area, filter by cost, number of rooms, and other details, and see what’s available.

Quite conveniently, some of these websites feature maps showing statistics on rental price per square metre by neighbourhood. This can be useful to ‘zone in’ on certain areas of the city or simply to judge whether the rent being requested by a landlord is reasonable. 

Rental prices by neighbourhood in Milan.

Rental prices by neighbourhood in Milan. Screengrab from Immobiliare.it

You’ll also find listings posted on classifieds sites like Subito, and even on Facebook groups like Milano Easy Renting and Affitti Milano, though most posts will be in Italian (some key Italian renting vocabulary can be found here). 

If you do use social media for your search and find yourself dealing directly with landlords, it’s generally advisable that you keep an eye out for scams at all times. As a rule of thumb, you should never hand out money without visiting the apartment and signing a contract first.

Finally, if you’re ever unsure about the legitimacy of a listing or have any other doubts about a specific apartment or neighbourhood, seeking out advice from people already living in the city is generally well worth the effort.

How much can I expect to pay?

Renting in Milan doesn’t come cheap. 

According to data from property market portal Wikicasa, monthly rent in the city comes at an average of around €25 per square metre – that’s nearly €7 over Lombardy’s average, and more than €12 higher than national average. 

But rent can be as high as €60 per square metres in the more central areas (Duomo, Cadorna, Cordusio, Castello Sforzesco, etc.).

READ ALSO: What are the best Milan neighbourhoods for international residents?

According to Numbeo estimates, renting a one-bedroom flat in the city centre will set you back over €1,400 a month on average, while renting the same type of flat in the outskirts will come at an average monthly price of around €950.

If you have any suggestions on how to find a place to rent in Milan, please share them in the comments section below. 

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