Renting out a property in Italy
Real estate management
Owning and buying property in Italy is one thing. It is a completely other ordeal to effectively manage property in Italy. In both short- and long-term real estate businesses are among Italy’s largest and fastest growing industries. This means that property managers must be innovating and growth-oriented in order to remain competitive, secure returns, and to stay in business.
However, with complex rules, regulations, laws, and business requirements; it may be difficult to effectively manage a real estate business, especially as a foreigner not from Italy. This is what Florencehouse.it remedies for local and foreign real estate business owners and investors. Have you ever thought abut how to rent out your property in Italy? Can it be used for leisure, remote working, or hosting events and ceremonies?
Property management in Italy
Florencehouse.it is a network of savvy real estate professionals including real estate agents, lawyers, accountants, surveyors, and architects that provides guidance and expertise to take care of properties in Italy, to ensure they are effectively managed.
The full spectrum of services offered by Florencehouse.it are provided proportionally (on a percentage-basis). Either offered by the assigning of a mandate by the principal owner as a percentage of revenue, or by allowing the agency to have control on the property while the owner receives a fixed monthly income via rental income.
Services related to foreign direct investments in Italy includes:
- property interior design and furnishing;
- property advertisement;
- registration of the property with the housing authority and the cadastre;
- negotiation and drafting lease agreements;
- on-site property management;
- tips for renting a house for the first time;
- laws and things to know before renting out a house;
- tax consulting and assistance;
- drafting of annual returns;
- representation via power of attorney;
- property maintenance;
- surveillance and security systems installation;
Those are just a few, Florencehouse.it also specifically tailors these services to non-Italian residents seeking to invest or own in real estate in Italy by providing services in English and other languages.
Foreign investments in Italy are safe with us – we offer clear communication, reporting the state of the property, income, and market trends.
Virtual property management
We also provide the opportunity for people to engage in virtual real estate and property management in Italy. Because we know that not everyone can relocate as soon as they find the property of their dreams. Many people simply are not able to manage and oversee foreign property amidst the bustle and business of everyday life. Especially in-light on COVID-19, virtual property management is something that has grown in importance and is something that Florencehouse.it focuses on.
Whether for short- or long-term rentals, and regardless of the type of property; the leading-edge virtual tools and networks used by Florencehouse.it allow us to manage countless properties throughout Italy and provide owners the ability to remotely manage their properties while still earning a hassle-free real estate income.
Virtual property management services:
- Strategic planning for renting out property in Italy;
- Low-risk rental management;
- Property advertisement and promotion;
- Finding of new tenants;
- Guarantees on contracts;
- Guaranteeing optimal sale price;
- Managing reservations;
- Welcoming renters and tenants;
- Checking the property after check-outs;
- Managing cleanings;
- Responding to reviews and inquiries;
- Other services as per the standing agreement.
Selling a property in Italy
We also offer services to support in the sale of property in Italy. Sometimes, real estate may become a hassle, or there is no longer a need for it. To sell property, however, vendors need to prepare several documents, including:
- an energy rating certificate;
- the certificate of habitability (similar to the Certificate of Occupancy);
- planning permission and building certificates offered after 1967;
- land registry certificates.
Once Italian or foreign vendors have these documents prepared, they can sell their property. The sale price of the property — the valuation — is also based on several different factors such as:
- the construction costs,
- location of the property,
- date of the last renovation,
- the comparison to similar properties in the market.
These four key factors are the basis of the property valuation.
In addition to understanding this, there are several concepts and requirements that sellers must fulfil when selling a home in Italy. The first of these factors is the use of a real estate agent. Real estate agents helping in the sale often gain a commission of 2% to 3%. This is to cover the fees of advertising the property, managing the listings, and generally supporting the sale. Special power of attorney is also used in the sale of properties, in which a representative for the seller is able to take action and responsibility of the sale on behalf of the owner for legal and regulatory matters.
The Sale and Purchase Agreement
When selling a home in Italy to locals or foreigners, vendors must prepare a preliminary agreement for purchase and sale. This regards the negotiated price of the property and other essential details of the property and conditions of the sale. This introductory agreement is not mandatory, but if it is drawn up, it must be registered. It is also at this time that the deposit (usually 10% to 30%) is paid on the home.
Deposit to buy a house in Italy
The most common type of deposit is a Caparra Confirmatoria, which stipulates that if the buyer cannot or does not pay, he lose the deposit. This confirmatory deposit also stipulates that if the seller backs out or is to be blamed in the failure of the sale, they must pay back the deposit twice over. The other type of deposit, a Caparra Penitenziale, stipulates that the party that initiates a withdrawal will give the counterparty a penitential deposit that was previously agreed-upon, and has no further claim.
The final deed
After this is the Rogito, the final deed for sale. The final deed contains all terms of the sale and the purchase price and has to be signed by a notary (chosen by the purchaser). Both the buyer and seller (or their representatives) must be physically present at the office of the Notary to witness the signing. This is drawn up in Italian language but could be written in two languages.
The Notary must read the deed aloud so both parties understand and confirm the deed. Once agreed-upon, the contract is issued in three copies and signed by both parties and the Notary. Following this, the buyer will transfer the remainder of the sale price, to be held in escrow until the seller has met all conditions—upon which time the ownership transfers.
The seller must then consider capital gain tax of the difference between the sale price and the purchase price. A capital gain represents the profit that the owner gets by selling a property at a higher price than what it was purchased for; and they must pay tax on this.
Our real estate management services in Italy
With the complex requirements of foreign ownership, sale of homes, and property management; it may be difficult to effectively manage a foreign property in Italy. With busy lives and schedules, a rental property or lease may simply turn into a job and turns out to not be worth the money.
This is the problem that Florencehouse.it solves. With a team of specialized professionals and consultants, we can manage properties for owners around the globe throughout Italy and ensure that Italian properties are well-managed and hassle-free. We take care of finding tenants, taking care of the property, legal assistance and advice, sale assistance, tax consulting, and more. We keep our client’s needs and desires in mind, while ensuring smooth management of the property in compliance with Italian laws and regulations.
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