pugliauncovered

  Magaraggia & co.

ITALIAN PROPERTY LAW CENTRE YOUR LEGAL ADVISOR IN ITALY

After several years of a progressive rise in the cost of real estate, the prices of housing in Puglia appear to have stabilised, with the inevitable consequence of a relative rise in the number of buyers to the market place.

In particular, Brindisi and Salento have seen investors from, above all, their home country of Italy alongside other investors originating from France and the United Kingdom. Interest in trulli, antique masserie and villas; whether in the countryside or situated along the coastline are purchased; with the prime objective of renting the property and realising a return on their long-term investment in Puglia Real Estate.

Rental

First and foremost it needs to be made clear that property rental in terms of touristic requirements; is not considered under the Italian legal system as “an entrepreneurial activity” provided that the number of living units, rented by the proprietor, do not exceed a total of four separate units with private and individual access. In this case there is absolutely no requirement to request official authorisation to rent the property. In excess of four units, the owner must request express permission from the authorities.

Rental contracts stipulated for use by tourists are not subjected to the same restrictions as traditional long-term lets of a minimum of four years. Considering the nature of transient and temporary contracts, the rental period may be of a few days or just one week.

The contractual agreement must stipulate that the rental period is less than 30 days, and is not subject to any registration. Rental contracts of more than 30 days must be registered with the “Agenzie delle Entrate”, with a tax payable of 2% of the total inclusive rent.

It is an opportune moment to request rents inclusive of associated costs to be payable in advance or on delivery of the keys to tenants or guests.

It is also advisable to request at the moment of delivery of the keys, a security deposit, for any eventual damages that may be incurred on the residence during occupancy; as such, any long legal battles of recovery of losses are avoided as are the costs associated.

Intermediary Agent

Should the owner wish to turn to a real estate property manager to address the rental management, they must be in possession of the expected prerequisites demanded under the Italian Law.

Mediators instructed can be determined with or without exclusivity, and must be paid for each inscription, a commission payment of between 15 and 20% of the rent.

Insurance Policy

An insurance policy is required to cover risk of fire or theft but also risk of accident or personal injury to those occupying the premises, and is most certainly required in the case where there is a swimming pool or other potentially dangerous activity on the premises.

Before signing the insurance policy for civil responsibility, the proprietor must accept the eventual unknown risk to himself and his guests and also those responsibilities to his tenants and their guests of the property, without any exclusion of responsibility.

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Last update : 04-09-2009 17:53

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