Leases with no crisis

30 October, Italia Oggi

Rents to students are the fastest growing rents

The rush to leases continues, especially for what concerns rents to students.  According to the recent research by Tecnocasa for the first semester, all the main Italian cities have registered positive performances. Despite rents to students are still a small percentage of the market (3.4% against 60% for the main house and 36.6% for works reasons), this solution means for landlords a lower risk of insolvency of tenants.

Among the big cities, Florence reports the highest concentration of students looking for an apartment to rent. The favourite property types are the two-room apartment (36.2%), the three-room apartment (32.1%), while contracts are generally temporary (56.4%). If the price is still the decisive element on the choice of the property, which is often shared to reduce costs, other features also considered are the proximity to university faculties, the presence of services and transports in the area.

Recently, according to Tecnocasa, students have become more demanding, preferring apartments in good conditions and already furnished.

Landlords and university students have a new instrument to regulate their relation. This is the regulation regarding rents to students included in the Law n. 431/98. But it’s necessary paying attention to some aspects. First, the contract must be written following a specific model, namely the attachment C of the ministerial decree regarding infrastructures and transports 16/2017. The requirements for renting to students are the temporary nature (from a minimum of 6 months to a maximum of 36, with automatic renewal for the same duration except termination), the controlled price (it has to match that agreed price at a local level between unions, universities, and student associations), and some specific tax reliefs for the landlord (compensating in this way the lower earnings for not renting on the free market) and for the tenant. However, the student must reside in a different city from the one where the property and the university are located.

If matching all these conditions, the landlord renting to students will be entitled to an Irpef reduction, but he’ll be able to opt also for the flat coupon with rate reduced by 10% in replacement of the ordinary tax, with the possibility to be stamp- and register- fee exempt. The tenant, instead, will be able to deduct 19% of the rent paid through the year, within a limit of 2,633.00 euro (at the condition that the university the student is enrolled at is located at least 100 km from the city of residence).

Source: Italia Oggi

Translator: Cristina Ambrosi

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