In this article you will find information on the new rent regulations 2017, which changed the way of entering into housing leases provided for in Law 431 of 9/12/1998, the so-called agreed contracts, those for transitional use and those for university students. At the end of the article you will also be able to download the files of the model contracts provided for in the new regulations.
New rules for 3+2 contracts
The Ministerial Decree of Infrastructure and Transport of January 16, 2017 published in the official gazette on March 15, 2017 sanctioned new rules for the conclusion of lease agreements, in municipalities with high housing tension ( + than 50,000 inhabitants ), drafted on the basis of local agreements of landlord and tenant unions.
What changes with the new 2017 rent regulations?
The first and most important change is that of the use of a predefined contractual framework provided by the legislature.
In fact, paragraph 10 of Article 1 states:
"The leases referred to in this article shall be concluded exclusively using the type of contract (Annex A) that is approved under Article 4-bis of Law 431 of 1998."
So, no more improvisations or texts taken randomly from the web. Since the new legislation came into effect, these are the texts. Period.
At the end of the article you will find the editable word templates and annexes contained in the DM, for entering into 3+2 contracts, transitional contracts and contracts for undergraduate students.
Validation of the contract by local associations
Another new feature of the decree is the validation of the contract by at least one local association representing the category of landlords or tenants.
The previous legislation also provided for the optional assistance of a trade association in concluding the contract, an indication that remains in the current system.
Whereas previously there was no control regarding the conformity of the declared rents with those authorized by the territorial agreement, now the contract amount is verified by the association that validates the contract, preventing landlords from benefiting from concessions on rents higher than those established by the regulations.
So gone is the era of stratospherically priced transitional contracts or 3+2 rent-free contracts.
Download the updated 2017 territorial agreement for the municipality of Verona here
The important new feature introduced is that, in case one does not want to use the assistance of landlord or tenant organizations to make the contract, there is still a requirement for validation by at least one of them to certify that the contract made is in accordance with the applicable territorial agreements.
Paragraph 8 of Article 2 in fact reads:
"The contracting parties may be assisted, at their request, by the respective organizations of building owners and tenants. The agreements shall define, for unassisted contracts, the manner of attestation, to be carried out, on the basis of the objective elements declared by the contractual parties, by and with assumption of responsibility, by at least one organization signatory to the agreement, of the compliance of the economic and regulatory content of the contract with the agreement, including with regard to tax benefits."
Of course, validation has a cost that varies depending on the entity...
Association references for the municipality of Verona:
U.P.P.I (Union of Small Property Owners).
045/8004698 Rivoli Gallery, Piazza Brà 10 (VR)
A.P.E (Association of Building Ownership)
045/8033844 Stradone san Fermo 21 (new location on the internet still results in Via Pallone 8) (VR)
S.U.N.I.A ( United National Union of Tenant Tenants )
045/8101101- 347/9371623 Erika, 14 Licata Street
S.I.C.E.T ( Housing and Land Tenants Union )
045/5096911 Lungoadige Galtarossa 22 (VR)
New tax breaks lease contracts 2017
The Dm published in the Official Gazette, in Article 6, provides another important innovation.
This novelty concerns thetax relief provided in the event of changes in taxation, taxation, or any other element that is capable of affecting the fairness of the rent; in these cases, if the parties agree, it will be possible to turn to the Joint Negotiating Committee, to consider the possible reduction of the rent, in order to avoid legal action.
Within 60 days of the request, the committee, will propose a fee reduction.
Another change regarding tax breaks for 2017 leases provided by the January 16, 2017 Ministerial Decree concerns the taxation of rental income.
Based on Article 5 of Dm:
the taxable income of leased buildings is further reduced by 30 percent, provided, however, that in the tax return for the year in which the relief in question is intended to be taken advantage of are indicated:
- The registration details of the lease agreement,
- the year in which the property is reported for municipal property tax purposes;
- The municipality of location of the same building.
Transitional contracts 2017 of 18 months duration: news
The new rules on new leases also take into account the increase in job insecurity in Italy, which is why the number of cases in which it is possible to enter into transitional contracts of up to 18 months has increased.
Based on the new local agreements, here are the cases in which it will be possible to enter into a transient lease agreement:
- Labor mobility;
- Study;
- Apprenticeship;
- Vocational training, upgrading and finding employment solutions
Lease agreement and dry coupon
Important news for dry coupon: The DM also clarifies that compared to what happens today, where the captive rent is applicable only to metropolitan areas and bordering municipalities, from the entry into force of the new rules, landlords and tenants who cannot freely use market contracts in all municipalities with more than 10 thousand inhabitants will be able to benefit from the so-called dry coupon with a reduced substitute rate instead of the ordinary one at 21 percent:
- Dry coupon rate 10% until December 31, 2017;
- Dry coupon rate 15% from January 1, 2018.
The Imu-Tasi discount of 25 percent
In addition to the preferential dry coupon, there is also the 25% reduction in Imu and Tasi, again for contracts with an agreed rent, provided for by the 2016 Stability Law as of January 1 last year (see also the article below). A measure that also applies to transients, because the establishing rule recalls all agreed contracts entered into under Law 431/1998.
Download Templates for new leases effective 3/15/2017:
- Model contract 3+2
- Template transitory lease contract
- Model lease agreement college students
- Annex D: Condominium expenses
- Annex E: Out-of-Court Negotiation Procedures
If you need advice on leases, please contact me!
