In this guide, we will explore the concept of renting for university students, but is renting really the new frontier of the real estate market? In part, yes, we have already stressed it several times, and the latest data that emerged after the lockdown continue to support this concept more and more.
There is a particular segment linked to the world of leases, which interests and intrigues more and more users, who are considering the opportunity to stipulate a type of lease of a temporary nature, precisely transitory, due to the fact that they are preparing to move to another city to start university studies.
In fact, we are talking about renting to off-site university students: what does it consist of and how does it differ from other types of contracts?
Here we have chosen to prepare a practical and concise guide for you, dealing with the transitional lease contract, the one used to regulate the rent of off-site university students, as the main topic.
But that’s not all: at the end of the reading, you will have the possibility to download in a simple way a model of a transitional lease, to be used in case you need it for the possible stipulation, or simply to realize in practice what this type of contract consists.
So, whether you are a parent who is taking the first steps to look for suitable accommodation for your son or daughter, future off-site university, or a homeowner interested in earning a home, you should definitely read this guide … we will explain everything!
We were about to forget the main slice of potential users interested in this guide: what if our dear reader was actually a university student who has to look for a house?
Well, if that reader is you, then all you have to do is give yourself a few minutes of your time to delve into a topic that undoubtedly interests you directly.
Are you ready? So let’s start and go step by step.
During the reading, we will analyze the issue by focusing on both parties involved: the homeowner who chooses this type of rental and the potential tenant interested in finding housing away from his home of origin.
Transitional lease agreement: what it is and when to use it
The world of leases is extremely intricate and vast, you are right. Fortunately, there are many possible solutions to choose from, all designed specifically for the various specific cases that may occur, to meet homeowners and tenants from various points of view: fiscal, regulatory, logistical.
The positive aspect of this wide choice, however, is precisely what leads to “subdivide” the various contracts by type of interest.
So, if you are a homeowner with the intention of a monthly income and you have chosen to rent your apartment to students, it is good that you know that there is a type of targeted contract, designed specifically for renting to off-site university students. .
Without prejudice to the fact that today there are many real estate agencies specializing in leases, which could therefore help you in the completion of the entire practice related to the temporary lease of a property, but it is obvious that with a pinch of independent knowledge, you can also provide for yourself to better understand or resolve certain aspects, including those of a bureaucratic nature.
The transitional contract in Italy is often also used for other housing needs in addition to that linked to off-site students, but it must be recognized that it lends itself to being applied above all to university leases.
What are the characteristics of the transitional lease
The student rental contract is governed by a specific law, no. 431 of 1998, with which specific tax breaks and rules on duration were introduced.
It is precisely the characteristics we will now discuss that are the strength of the so-called “transitional” contracts.
The absolute main feature of this agreement (which is why it was actually designed for university students) is precisely linked to the non-residence of the tenants.
Let’s explain: the term “ non-resident “ indicates that the student’s residence does not necessarily have to be in the same city where the university to which he is enrolled is located. In any case, the latter, or one of its branches, must be located in the Municipality or in a municipality adjacent to the place where you intend to move.
The minimum duration of the agreement is six months, the maximum one is thirty-six: also, in this case, a timeline has been structured that is suited to possible needs, which for university students can change even within a few months.
Of course, another feature of this legal transaction, as in reality also happens in most other types of contracts, is that the tenant cannot in any way sublet the apartment.
That’s all? Let’s get to the heart of the discussion, analyzing point by point, how a transitional lease agreement is generally established for off-site university students.
The choice of the agreed fee contract
We remind you, for anyone who does not know, that this type of contract provides for the possibility of agreeing on the amount relating to the rent or to resort to what is called in technical jargon ” rent at an agreed rent “: this contractual aspect is fundamental importance, as it is designed specifically to not create disputes, but rather to facilitate fiscally both the owner and the tenant of the property.
In other words: it will be possible to refer to pre-established price ranges based on the type of apartment to be rented and the Municipality where the property is located.
The determination of the parameters of the agreed rent contracts is the responsibility of the building property and tenant organizations, as per art. 1, paragraph 2 of the Legislative Decree of 16 January 2017. We remind you that this type of contract, in order to be valid as an agreed contract, must be endorsed by the trade associations signing the local agreements.
Subsequently, the Municipality adopts, on the basis of specific “common” characteristics, the price brackets to be followed for the determination of the rent between owner and tenant, to ensure that the agreement takes place in a more streamlined manner.
What are the characteristics that must be taken into account? The state of maintenance of the property, the cadastral category, and the furnishings, the area (understood as services, proximity to transport, etc.).
Here then each municipality will have, in the event that there is the possibility of using the agreed fee, its minimum, and maximum parameters to refer to.
In the case of letting for university students, the rent should be agreed upon between the property owners’ associations and the student associations. The aim is to make it easier for off-site students to find accommodation at favorable and satisfactory conditions. Upon expiry, the parties may decide to extend the lease, while in the event that it is not desired to renew it, it is necessary to notify at least three months before the expiration date.
Choosing to rent a house to university students: let’s analyze the question from the side of the homeowner
As already partly anticipated, earning an unused second home, in this historical period, is certainly a wise choice. But what happens when you choose to focus on the university student rental segment?
It happens that very often homeowners are intimidated by the possibility that their property could be damaged in some way by students, very often young children and the first experiences of autonomy at home.
Notwithstanding the fact that we are sure that the probability that negative events can occur is divided equally for each type of tenant, however, here are some preliminary practical indications to be taken before proceeding with the entry into the home of university students.
- Accurately updated and ready documentation: you will have to arrange for the so-called APE to be drawn up ; this acronym stands for Energy Performance Certificate and it is good that you know that it is one of those documents that “follows the property”. It indicates the energy consumption of a house on a scale ranging from A to G. The APE must be performed by a specialized technician who, after an inspection of the apartment, will evaluate its structural characteristics and draw up the appropriate document. The latter has a duration of ten years and must be handed over to the tenant at the time of signing the contract.
- A preliminary inspection: take a few hours of your time and organize an accurate inventory before letting the tenants into the house; put on paper everything that is present in the house in order to have precise knowledge when the contract is about to be terminated, of what will have to be in the house, in order to avoid problems.
- Utilities: provide for the transfer of utilities in the name of the tenants who will come; in this way, you will be able to free yourself from any faults dictated by non-payments or unpaid, or in any case so it will be easier to manage these intricate situations, should they arise.
- Remember the deposits: don’t discount on this! The deposit that each student must pay during the agreement phase is essential for you to cover any future arrears relating to the fee. In this case, we strongly advise you not to be softened, or you risk getting worse in the future.
Last but not least: always try to get the contacts of contacts outside the group of tenants, such as the parents of the children. It is not distrust, but caution is never too much!
Mandatory components of the transitional lease agreement
The contract models can be varied, but know that there are essential components that all lease agreements have in common and it is essential that you know them:
- the particulars of the parties;
- the description of the property;
- indication of the amount of the fee;
- the payment methods;
- the duration of the lease;
It must be expressly written that there is a transitional requirement that determines the nature of the agreement in place.
The transience in question must be justified by attached documentation: for example, the certification of registration at the university of the city, or a declaration from the employer that explicitly obliges the employee to a temporary transfer to that Municipality.
The generic transitional contract has a minimum duration of one month and a maximum duration of 18 months and is not renewable, while the specific rental contract for off-site university students provides, as mentioned, a minimum duration of 6 months and a maximum of 36 months. months.
Should this particular specification in the contract fail, it is compulsorily expressed that the contract must be transformed into ordinary? This would mean transforming the contract into a free rent contract, therefore the well-known 4 + 4.
Subsequently, a specification must be affixed in which the tenant declares that he has correctly received the documentation and all useful and necessary information relating to the property subject to the contract.
In the event of failure to declare the APE, which is mandatory as explained in the previous paragraphs, the lessor and tenant are subject to the payment, jointly and in equal parts, of an administrative penalty (payment of a sum of money). The payment of the administrative fine does not exempt you from the obligation to submit the declaration or copy of the EPA within 45 days.
The renewal, for these particular rental contracts, is not foreseen, which is why, if you want to renew the contract, you must necessarily convert it into ordinary: otherwise what sense would the transience of the agreement have?
And what about the cancellation instead?
In lease contracts for transitional use, it is not necessary to give the cancellation, because the termination of the contract occurs automatically at the end of the predetermined period.
If the reasons for the transience have been put by the landlord, it is however necessary that the latter confirm them before the deadline, with specific communication to the tenant.
It is possible to establish a sort of expiration date, which anticipates the termination of the contract, if the landlord needs to return home early, and therefore conclude the agreement before the contractual term.
For example, the transferred employee will have to send the owner a registered letter, with which he will point out that his return to the original company headquarters has not been arranged and that therefore the transitional needs already indicated originally in the contract persist .