Property management in Italy

As a homeowner in Italy, managing your property will vary hugely depending on how you use the property.

If the property is your primary residence, managing will be a little easier as it won’t be hard to manage the upkeep, maintenance and bills yourself.

However, for owners of holiday homes, especially if renting the property out, you will need to set up a system of property management in Italy.

What do you need to consider as a homeowner in Italy?

As the owner of a property in Italy, regardless of how you use it and how long you’ll spend there, you’ll need to consider:

• Property taxes (IMU)
• Compliance with local building regulations
• Ongoing utility fees
• Rental restrictions and licensing
• Property maintenance
• If renting out, key holders and refreshing the property

For those present in Italy, this will be significantly easier. Bill payments can be via direct debits to their Italian bank accounts (to avoid exchange rate fees) for ongoing costs and manage taxes, maintenance and restrictions as and when they come up.

For those absent from their property (be that a holiday home, rental or investment property) it can prove useful to hire a property manager.

Hiring a property manager

When owning property in Italy, one of the most efficient ways to ensure it is well-maintained and generating income (if renting) when you’re not there is to hire a property manager.

Property management companies in Italy offer a range of services that cater to the needs of absentee owners. These services often include marketing your property for rent, handling tenant enquiries, conducting viewings, managing lease agreements and ensuring rent is collected on time. They also take care of the legal aspects, such as compliance with local regulations and tax obligations.

The cost of hiring a property manager in Italy varies depending on the level of service required and the location of your property. Typically, property managers charge a percentage of the rental income, ranging from 10% to 30%. It’s essential to conduct thorough research and choose a reputable company with experience in managing properties similar to yours. It’s likely management fees will be higher in popular tourist locations, however, so will the return on your property.

Maintaining your home

Appearance is very important when you rent out your Italian property. It should be photogenic enough that when someone is searching through pages of photographs of holiday rentals, they will be drawn to click on yours. Traditional Italian buildings, swimming pools and views can be a big plus. Word-of-mouth recommendations and good online reviews are an essential way to get further customers.

Your property must be is up to the standard expected by holiday rental guests right from the start, or you risk starting off with bad reviews and wrecking your rating. You’ll need to furnish your home with clean, stylish, yet sturdy furniture and modern equipment.

Consider also external help when you rent out your Italian property. If you are unable to be there to clean it yourself, make sure there is a trustworthy person in the area that you can employ to do cleaning and maintenance. You will also need someone to meet the guests and hand over keys.

They will need to be on call if the guests have any problems that need sorting out immediately. Typical problems include gas or water supply running out and power cuts. In rural areas, finding a reliable person willing to manage your property may be more difficult than in a tourist town.

Additionally, investing in smart home technology can be beneficial for remote monitoring and management of your property. Systems for security, heating, and energy management can often be controlled via smartphone apps, providing peace of mind and operational efficiency. 

Renting out your property

Renting out your property can be a lucrative option if you’re an absentee owner in Italy.

To attract tenants and maximise your rental income, consider the following tips:

• Furnish your property to a high standard to appeal to potential tenants.
• Ensure your property is listed on popular rental platforms, both locally and internationally.
• Provide clear and professional rental terms to avoid any misunderstandings.
• Consider hiring a local agent who speaks both Italian and your language to facilitate communication with tenants.

Remember, the rental market in Italy can be seasonal, especially in tourist areas, so pricing and marketing strategies should reflect this to optimize rental periods.

Renting as a commercial business

If you offer more than three holiday properties or your property is permanently up for rent, the state will automatically assume that you are letting property on a professional scale. As a commercial business, you will have to register with the local authority, as well as the chamber of commerce. You will also need to get professional local advice to ensure your business and property meet all requirements, like structural safety regulations. You’ll also have to charge VAT. If a property is rented for more than 30 days, you must register the contract at the local tax office.

Please note: Short-term let income is now taxable under the Cedolare secca system. Read more in our guide to Italian taxes.

Registering guests and tourist tax

Each local authority has its own regulations concerning holiday rentals. In some cities, you have to inform them of the arrival of each guest and send a monthly list of all your guests. You must send the tourist tax (“tassa di soggiorno”) to the local authority and/or province, by bank transfer. The responsibility for these registrations and taxes falls on the property owner. Introduced back in 2011, the tourist tax is at the discretion of each local authority. Italian tourist cities that currently charge a tourist tax are: Milan, Rome, Florence, Naples, Turin, Venice, Todi, Assisi, Pompeii and Paestum. Other towns expected to follow suit are Portofino, Rapallo and Santa Margherita Ligure.

Each local authority has its own regulations concerning tourist taxes, so do double-check.

The Italian municipalities are entitled to apply this tourist tax on stays in hotels, bed & breakfasts, holiday homes, cottages, campsites and other holiday accommodation. The amount of the tax ranges from €1 to €5 per day per person. This depends on the type and “luxury level” of the facility. For a typical Airbnb property rental in Rome, you’ll be paying €3.50 per day per person.

Insurance

If you rent out your Italian property, it is wise to take out insurance. That way, you can sort any problems quickly and easily. Flood damage, theft of your TV etc. are things that will need sorting out quickly before your next guests arrive. A good holiday home insurance policy should include public liability insurance and cover your property when it’s not occupied. I’d advise getting cover for loss of rent or income.