A rental security deposit – deposito cauzionale or simply cauzione in Italian – is a set amount of money a tenant pays a landlord to protect the landlord in case of damage to the property. 

The deposit serves as a guarantee that the tenant will follow all the rules outlined in the rental agreement, and it must be returned when the tenant moves out.

Stories abound of foreign nationals being mistreated by unscrupulous landlords in Italy, but when it comes to security deposits, Italy has strong protections in place for renters. Here’s what you need to know to protect yourself. 

How much deposit can a landlord request?

By law, security deposits cannot exceed three months’ rent, regardless of the tenant’s income or nationality, but landlords don’t always respect the rules.

READ ALSO: 8 things landlords in Italy can never ask of tenants

When looking for an apartment in central Milan several years ago, Sofia, who grew up in Australia, was told by a landlord that foreign nationals needed to pay a 12-month deposit because they sometimes left without paying the final instalments.

“The deposit was not presented as something negotiable,” she said. “It was a high-end apartment, so I guess the landlord knew that people had the capacity to pay.”

Sofia knew it might not be legal, but at the time it was difficult to find high-quality, centrally located apartments, she said.

She ended up choosing a different flat with a more standard deposit simply because she liked the other place better.

What happens if a landlord asks for more than 3 months’ deposit?

Unfortunately, prospective tenants have little recourse.

Landlords often refuse to change the deposit terms even when challenged, and will simply choose a different tenant. 

However, if you’ve already entered a rental agreement that asks for more than a 3-month deposit, you can ask the landlord to return the money.

If the landlord refuses, the tenant can then request mandatory mediation before national homeowners association Unioncasa.  

What do security deposits cover? 

Security deposits can only be used to cover certain limited expenses.

These include:

• Any rent the tenant failed to pay
• Failure to maintain the property, such as making repairs when things break
• Property damage caused by the tenants themselves
• Legal costs arising from eviction proceedings if the tenant refuses to move out
• Refusal to give the owner access to the property for valid reasons

Tenants should fully document existing damage before moving in so landlords can’t try to make them foot the bill for problems that predated them. 

When is the security deposit due?

Renters in Italy often sign a preliminary agreement laying out the basic rental terms – including duration and price – followed by a more comprehensive rental agreement.

The security deposit is generally due at the moment the final rental agreement is signed.

Sometimes, during the preliminary contract phase, a landlord will request a caparra. This is an amount of money guaranteeing the completion of the rental agreement and is usually much less than the deposit (the cauzione).

READ ALSO: The 8 red flags to look out for to avoid rental scams in Italy

When the final agreement is signed, the caparra should be returned and the cauzione becomes immediately due.

Alternatively, the caparra can be absorbed as part of the deposit or applied as payment for the first month’s rent.

Ultimately, Italians sometimes use the words caparra and cauzione interchangeably, but they are actually two separate things.

When is the security deposit returned?

The security deposit must be returned at the moment the tenant gives the property back to the landlord.

If the landlord is late returning the deposit, the tenant can file a ricorso per decreto ingiuntivo (injunction order) to request the deposit plus interest.   

What happens if the landlord doesn’t return my full deposit?

A landlord cannot unilaterally decide to withhold a deposit.

To keep all or part of the deposit, the landlord must appear in court so a judge can verify whether the property was in fact damaged, or whether other circumstances justify the landlord keeping the money.  

In fact, sometimes at the end of the rental period, the landlord has to pay back more than the original deposit.

Every year, the Ministry of Economy and Finance sets legal interest rates based on inflation and other economic factors.

During periods with high legal interest rates, the landlord might be required to pay back the deposit plus interest.  

Can I pay my last months’ rent with my deposit?

Tenants cannot use the deposit to pay their last three months’ rent. The deposit is due back after the tenant moves out. If the tenant stops paying rent before the rental period ends, he or she is in breach of contract and could face legal action.

Can I avoid deposit problems by only choosing rental properties listed by real estate agents?

In this situation, real estate agents typically represent the landlord’s interests, not the tenant’s – even if the tenant ends up paying the agent’s fee.

Agents don’t always follow the rules, and sometimes they don’t even know the law surrounding deposits. 

READ ALSO: EXPLAINED: How to find a longer-term apartment rental in Italy

When it comes to rental agreements, it’s generally wise to be your own advocate and speak to an expert who has no connection to the landlord.   

Key vocabulary 

Deposito cauzionale – Security deposit

Caparra – Down payment 

Ricorso per decreto ingiuntivo – Injunctive relief 

Mediazione obbligatoria – Mandatory mediation 

Do you have experience of landlords in Italy not respecting the law when it comes to rental deposits? Share your stories and advice in the comments section below.