Transitional contract, what to know. Downloadable word template

Do you have an apartment that you use only a few months a year and would like to rent it out for the months you are not using it? Then you should think about a lease of a transient nature!!!

In this article you will find all the information to correctly make this contract in the municipality of Verona, according to the updated territorial agreements.

If you just need the downloadable word template of the transitional contract, go to the end of the article and download it for free!

Let's start with the basics.

Transitional lease regulations

The law that provides an exception on the duration of leases from the classic 4 years +4 is the L. 431/98 where, in Art. 5, enshrines the legislature's intention to regulate short-term leases, leaving it to subsequent measures to regulate the characteristics of these contracts.

The transitional lease contract by nature has a fundamental, ESSENTIAL feature for its stipulation:

THE TRANSIENCE OF HOUSING NEED FOR EITHER OF THE 2 PARTIES TO THE CONTRACT

In fact, as the first paragraph of Article 2 of DM 16/01/2017 confirming what was already specified in DM 30/12/02 :

...  Such contracts are entered into to
meet special needs of owners or tenants  for
cases - with particular reference to those arising from
labor mobility and related to study, apprenticeship and
professional training, further education and research of
employment solutions - to be identified in bargaining
territorial between the organizations of building owners and the
most representative conductors.

Transitional lease requirements

In the same article, in the second paragraph, we then find the reduction of the requirements from the territorial point of view, which reduce to 10,000 the minimum number of inhabitants in which to include the municipalities in which transitional contracts can be stipulated ( previously they had to be those with high housing tension - over 50,000 ab - )

As indicated by the last lines of Paragraph 1 Article 2 above, the details of how to enter into leases for transient use are left to be decided through territorial agreements in the municipalities where the properties are located, i.e., documents in which landlord and tenant associations agree on common rules for entering into these contracts.

The territorial agreement of the municipality of Verona, provides these specific reasons for the transience of housing need:

Reasons for landlord's transitional tenancy:

When the landlord has a requirement to use the property for residential purposes within 18 months
One's own or children's or parents for any of the following reasons:
- Temporary relocation of the place of employment;
- Marriage of children;
- return from abroad;
- use of the dwelling for one's own or children's home for study purposes
exclusively for properties located in a place other than the landlord's place of residence;
- use of the property for one's own, children's or parents' home as a result of
termination of employment already known at the time of entering into the lease, which
results in the release of the service accommodation.
- any other specific needs of the landlord related to a certain event at a
predetermined date and expressly stated in the contract.

Grounds for the tenant's transient tenancy:

- fixed-term or fixed-term employment contract in a municipality other than the municipality of
residence;
- planned relocation for work reasons;
- temporary relocation from the place of employment;
- need for care or assistance to family members in a municipality other than the municipality of residence and
not bordering it;
- purchase of a home that becomes available within 18 months;
- renovation or execution of work that makes the tenant's
home temporarily unusable;
- election campaign.
- any other specific needs of the tenant related to a certain event,
fixed date and expressly stated in the contract.

It is sufficient for only one of the parties to the contract to have one of these reasons to fall under the category of transitional contracts.

Let's look at the other features of this contract.

Duration of transitional contracts:

Paragraph 1 of Article 2 DM Dec. 30, 2002 stipulates that the contract of a transitional nature must mandatorily have a duration that can range from a minimum of 30 days to a maximum of 18 months.

Unlike what many people think, the contract of a transitional nature is not renewable beyond its maximum duration (18 months precisely).

Calculation of rent in transitional contracts:

The rent is not free, but is set according to the parameters specified in the territorial agreement of the relevant municipality. Since it is mandatory for the contract to be endorsed by the unions, EVEN for contracts of a transitory nature, it is a good idea to have the count done, before placing the property on the market.

Termination of transitional contract:

Here the issue is very delicate, as the rules governing early termination in "ordinary" leases rely on L 431/89, which provides the for "serious reasons" 6 months' notice.

However, since contracts are transitional in nature, of varying duration, it is unthinkable to provide notice with such timeframes.... that is why the regulations do not specify any timeframe to be used, but leave to the parties, freedom to bargain on the length of notice for early termination.

In fact, inArticle 10 of the template to be used to enter into contracts of a transitional nature, the legislature left a space to be filled in to indicate the length of the notice period.

Two points need to be made, however:

• If the contract is transitional in nature, THEN justified by a real temporary need, technically there should be no need to terminate it early... but knowing that unforeseen events can happen, it is always best to specify a clause for termination ( I suggest 1-3 months depending on the length of the contract )
• In case the transitional lease is IMPROPRIATE, i.e., does not contain true transitional clauses specified within it, case law tells us that that contract falls under the discipline of free rent ( i.e., 4+4 ) where the 6 months for early termination are provided, with the famous "serious reasons." So beware of making transitional contracts lightly....

Security deposit in the transitional contract:

In the model of the contract provided by law, it is left to the parties to quantify an appropriate security deposit, which can also be provided by bank/insurance surety. The amount of the deposit, as with "ordinary" leases, may not exceed 3 months' rent. The deposit must be interest-bearing ( therefore productive of legal interest ).

These are the main aspects of the transitional lease. If you have any questions that were not answered in this article, please leave a comment and I will answer them right away!!!

DOWNLOAD TRANSITIONAL CONTRACT TEMPLATE FOR VERONA MUNICIPALITY

DOWNLOAD TERRITORIAL AGREEMENT VALID FOR THE MUNICIPALITY OF VERONA

If you even get to read this sentence here, it means that you really care about locations!!! 😉

Then you may also be interested in these articles:

HOW TO MAKE 3+2 CONTRACTS IN VERONA

HOW TO RENT HOUSE- PRACTICAL USER GUIDE

If you need assistance in making a lease, contact me!