Security deposit for long-term rentals

The law stipulates that the security deposit (deposito cauzionale) to be provided by the tenant may not exceed three months’ rent, as it only serves the purpose of covering any damages caused to the rental property.

The deposit may be paid by means of a bank or insurance guarantee (fideiussione bancaria/assicurativa), a guaranteed check (assegno a garanzia), or in cash (in contanti). The latter, however, is only possible if the deposit does not exceed €5,000, due to Italian anti-money laundering regulations (normativa antiriciclaggio).

In any case, the landlord (locatore) is obliged to return the deposit within two months after termination of the rental contract and to pay the tenant the annual interest (interessi) accrued on it. If the landlord fails to make the annual interest payments, you have 10 years to claim them in court before your entitlement becomes time-barred (prescrizione).

The landlord may withhold the deposit in part or in full only to cover damages to the property caused by the tenant or in case of one or more missed monthly rent payments.