Published by carratelli4 years ago

Temporary leases: what are the requirements and conditions for entering into a temporary lease, including duration and rent?

Temporary leases: what they are, what the law requires, and how to draw them up 

I temporary rental agreements These are special rental agreements with their own regulations. Let's look at what they are exactly, the regulations governing them, and what elements they must contain.

Duration of the temporary rental agreement

The temporary rental agreement It provides for the rental of a property for residential purposes for a minimum period of 30 days and a maximum of 18 months. 

This type of contract is signed for specific work or study needs. The advantage is being able to use a property without having to sign a minimum contract term of 3 or 4 years, as required for open-ended or agreed-upon rental agreements. 

The necessary conditions for the stipulation of a temporary residential rental agreement I am:

  • - the parties involved must be natural persons operating outside of the business activity
  • - the rental must have the sole purpose of housing (excluding tourist rentals)
  • -the maximum duration of the contract must be 18 months
  • - the reason that determines the transitory nature must be indicated, whether it depends on the lessor or the lessee

If just one of these requirements is missing or is not met, the contract automatically converts into an ordinary rental contract (4+4).

Temporary residential rental agreement: the legislation

The temporary rental agreement It is governed by art. 5 of Law 431/1998 and by the Ministerial Decree of 30 December 2002, which must be referred to when drafting the contract (Annex C or D), together with the category agreements in force in the Municipality where the property is located. 

For the purposes of validity, the transitional contract must: 

  • -be drawn up in written form
  • - be registered with the competent territorial office of the Revenue Agency

These are the elements that must be specified:

  1. - general information on the parties
  2. -property description
  3. -amount of the rent
  4. - payment method for the fee
  5. -duration of the lease
  6. -description of the temporary need proven by documentation that must be attached to the contract
  7. -certification of receipt, by the tenant, of the APE documentation
  8. clauses and prohibition of subletting

In this type of contract, there is no need to give notice, because it expires at the end of the period indicated as transitional and therefore has a pre-established expiry date.

Price regulation in the temporary rental agreement

Regarding rent, while theoretically a mutually agreed-upon fee can be established, in some cities the amount to be applied is determined by local agreements. Specifically, we're referring to:

  • -Rome, Milan, Venice, Genoa, Bologna, Florence, Naples, Turin, Bari, Palermo, and Catania (the entire metropolitan area)
  • -Municipalities bordering the aforementioned cities
  • -Provincial capitals

The temporary rental agreement It can be a great advantage for a property owner who needs to have their property vacant within a few months, or for those who find themselves having to live in a city for a limited period for study or work reasons. 

However, it is essential that the transitional use be respected, under penalty of forfeiture and conversion into an ordinary contract. 

When the temporary nature of the lease is a requirement of the landlord, the landlord must confirm this to the tenant before the expiration date via formal communication, otherwise the tenant may see the contract converted into an ordinary 4+4 contract. 

To avoid surprises, especially if you are a landlord, you need to understand the implications of a transitional agreement and its associated obligations in detail. Therefore, it's best to entrust the drafting process to competent professionals. Trust the Carratelli RE staff: Contact us! 

Carratelli

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