How many times have you thought of renting that inherited apartment, or that second home purchased as an investment, which instead remained just a property parked indefinitely? Certainly, the idea of earning an unused second home could for many represent a useful monthly income to face unexpected expenses and, why not, round up the net income at the end of the month.
During the reading, we will talk about rent, but focusing on a particular type of contract that could bring many benefits: the rent contract with an agreed fee. Have you ever heard of it?
In 2020, in Italy, it was verified that about half of the over 40 population owns at least two houses on the national territory.
So, perhaps it is good to think that these real estate properties could become useful sources of active income and not be left abandoned to the elements and the ravages of time without being used.
It is thanks to an increasingly rampant trend that choosing to live in a rented house has become a must for many Italians, especially among the youngest.
So, whether you are the owner of a second home to rent, or a potential tenant interested in learning more about the procedure to follow, this guide is the right reading!
The first question to necessarily answer is: can the rental contract for residential use be drawn up only in a single way? The answer is no. In Italy, there are in fact several ways for an owner (and therefore for a tenant) to manage the bureaucratic process linked to a lease … you just need to know the differences and choose the most convenient one.
Although the protagonist of this reading is the rent agreement at an agreed rate, it is good to make a brief and concise premise on what is commonly called a free rent rental agreement and which, certainly, most of our readers already know.
The classic rental contract for residential use with free rent
We will not dwell on it, but a premise on this is a must if only to better understand the second type of contract which we will talk about shortly, to compare the two types precisely to the specific needs of your case.
In the segment linked to real estate leases, the free-rent rental contract is certainly the best known, but perhaps not the most used to date.
In fact, you can easily guess that this choice means an agreement between the parties in which both are free to decide every aspect related to the contract. In essence, the fulcrum on which this contractual choice is based is that it will be possible to decide in a totally autonomous way the amount that the tenant will have to pay monthly to the landlord.
This kind of contract, governed by law 431 of 1998, are also known as “4 + 4 contracts”. These are agreements between the parties that are implemented especially in cases of stable and non-transitory housing conditions.
An alternative to know and evaluate for those who need a transitional and perhaps short-term contract is precisely that linked to the lease contract with an agreed fee.
Why does the agreed rent contract turn out to be one of the most advantageous choices for those who choose to rent their property?
It is clear that each situation will have to be analyzed according to the cases and needs of each one, but it is certainly advisable to evaluate as a primary option that of proceeding with the rental contract at an agreed rate.
Do not worry, we are about to reveal all the benefits of this choice and, whether you are the homeowner or the tenant, you will acquire the right yardstick to freely decide which type of contract is right for you.
Rent at an agreed rate: how it works and why to choose it
So far we have only made a few hints to it, but now it is really time to introduce it to you: the rent agreement at the agreed rate.
- How does it work?
- Why choose it?
Let’s go in order and then let’s start from the beginning: here is explained in simple and clear words how the rent with the agreed fee works (and why to choose it).
It is thanks to the measures taken with the 2016 Stability Law that this contractual agreement formula has actually become one of the most convenient for signing a lease for residential use. Not only for the modalities but also and perhaps above all by virtue of all those tax benefits that both owner and tenant can take advantage of.
The contract with an agreed fee is regulated by law n.31 of 1998. This type of contract, in order to be valid as an agreed contract, must be endorsed by the trade associations signing the local agreements.
This claims that the parties must agree on the amount relating to the rent by relying on reference tables, in which the minimum and maximum economic parameters are defined that refer to the area, the time duration of the agreement and the type of property in question. question.
The parameters of the agreed rent are drawn up by particular territorial agreements between organizations of property owners and tenants. It should be emphasized that, despite the strong increase in the choice to rely on the lease contract at an agreed rate , there are some geographical areas in Italy in which these market parameters have not yet been established. It will be precisely in those particular geographical areas that the rental contract at the agreed rate cannot be signed by the parties.
This particular contract was created to avoid discord between the parties and therefore guarantee an agreement that could be as fluid and homogeneous as possible.
Not only that, as previously mentioned, the reasons for choosing this formula are also and perhaps above all of a fiscal nature.
In fact, it happens that for the owner who chooses the agreed rent, the tax reliefs are:
- Reduction of the tax base for personal income tax and registration tax;
- IMU and TASI reduction to 75% (Municipalities indicated in Ministerial Decree 16/1/2017)
- 10% flat rate coupon
And what will the tenant benefit from? The advantages for tenants with an agreed rent will not be outdone. First of all, there is certainly the possibility of taking advantage of a more competitive and competitive rent compared to the average market values.
Not least, if the house in question is used as the main residence, you will be able to enjoy a tax deduction for income deriving from Irpef of € 495.80 if the total income does not exceed € 15,493.71.
Or, if the total income is greater than € 15,493.71, but not greater than € 30,987.41, the deduction is halved and therefore equal to € 247.90.
Rent at an agreed fee: that’s all you need to remember
We have dealt with the subject in the most linear and simple terms, to explain to everyone how the rent at an agreed rate works and why this is among the most popular in Italy.
Before saying goodbye, however, we have the duty to underline the last but essential aspects linked to this contractual formula.
- Registration of the contract is always mandatory and must be carried out within 30 days of signing it, under penalty of nullity of the contract
- The use of models prepared by the Ministry of Infrastructure and Transport is mandatory for the stipulation of the contract with an agreed fee
- Attach the energy certification of the building and the declaration of conformity of the systems (mandatory in order to proceed with the registration of the contract without incurring penalties)
- Attach the certificate of compliance of the fee with the contents of the agreements (necessary requirement to access tax benefits)
- Specify “Dry coupon option” to take advantage of this tax advantage
Contract registration: some useful suggestions
We have already been interested in leases in their most generic sense during several useful and practical readings for those who, like you, approach this world as a neophyte. Therefore, an aspect already partially covered but which is always good to remember, is precisely that linked to the contractual registration method.
If you choose to have an experienced real estate professional follow you through your practice, then he and she will certainly be able to fulfil this task properly. Otherwise, if you are acting in total autonomy, then perhaps some suggestions on the matter will be useful.
How to register a lease? First of all, it will be necessary to fill in the RLI form, an acronym that stands for “Real Estate Lease Registrations”.
It is a practice that you will of course have to carry out if you are the owner of the property, while if you are the tenant, it will not be your job to take care of it.
After having adequately filled out the aforementioned model, there are three ways to go:
- Make use of a licensed real estate agent to follow the procedure for you (as already mentioned)
- In-person, at the office of the Revenue Agency
- Online, using the telematic services of the Revenue Agency offices
Rent at an agreed rate: are you adequately prepared? Now, we believe so!
Here we are, we have mixed well a series of information useful for you for the purpose of choosing the contract for the lease. We have chosen to focus on the main aspects related to the rental contract at the agreed rate precisely to leave you ample freedom of choice on the type of contract that will best suit your case.
A final and perhaps mandatory quick analysis, however, concerns the situation relating to large cities in Italy.
Metropolises such as Rome or Milan represent particular exceptions for the real estate sector in general.
As regards the specific case of leases for residential use, the Municipality of Milan provides for the possibility of exploiting the type of contract with an agreed rent also for leases relating to individual rooms in the apartment. As for the capital, on the other hand, Rome represents a municipality in which the agreement is in line with the real market prices: what must be remembered, however, is that if the apartment in question is furnished, a rent increase will be foreseen up to 20% compared to the agreed.