You can imagine it a boy who has no accommodation in Milanafter graduation, take a three-year university course to become a professional nurse and come to work in a city hospital for less than 1,500 euros a month, to be donated largely to a rent? Frankly difficult. The discussion can be extended to many other categories of low-income but employed workers fundamental work for the quality of life in the city: a decidedly serious issue because Milan doesn’t just need rampant professionals, designers, content creators and influencers.
Precisely for this reason the house is the crucial theme for the present and future of Milan. The last occasion on which it was talked about was last Monday, at the presentation of a research of Scenari Immobiliare and Abitare.Co on rentals. Since the Courier has already done so extensively (in this article). Here we will not propose a second report of the meeting, but it seems interesting to us to focus on a particular aspect that emerged from the debate and which our newspaper has already underlined in the title of its report. Only 6% of homes in the city are rented using the agreed rent. This is an estimate, perhaps optimistic, which will only be able to obtain official approval when the Revenue Agency releases the annual report on the residential market in Italy in June, but the issue is not a decimal or a point more or less . The fact is another: a Romethe market which in terms of size and real estate values is closest to the Milanese one, the agreed fees represent over half of the total and the same more or less happens in other large cities in the country.
The limited success of the fees agreed in Milan is due to two factors. The first, general, is a strong distrust towards the contractual forms provided for by the general law on rentals 431/98, and it is not a completely unjustified distrust given the difficulty of vacating the accommodation in the event of default by the tenant. The strong shift towards short-term rentals by homeowners is due much more to the desire for security regarding the availability of accommodation than to the thirst for greater income. The second problem however, for those who are not wary, is precisely linked to I earn: the level of the agreed fees is too low compared to that obtainable by renting according to the rules of law 431/89 but at free rent.
It’s not difficult to prove it. The agreed rent agreement signed on July 27, 2023 significantly raised rents compared to those under the previous agreement but did not anticipate that rents would continue to rise. The agreementstipulated as required by law by the owners’ associations, the tenants’ unions and the Municipality, provides for the division of the city territory into five tariff bands (previously there were twelve) and a street directory allows you to identify for any house number in the city which tariff level to refer to. The amount of the fee it is determined depending on the characteristics of the accommodation, with very strong minimum-maximum variations, but placing oneself in the upper part of the oscillation band is rather difficult.
It is possible to object to the small number of bands. The first strip, for example, is very wide and starts from the center but includes some numbers of the third ring road, the one crossed by the 90-91. So for example (we mention at random) a part of Piazzale Brescia or Viale Murillo or Viale Bezzi are in band 1 and have the same agreed rents as via Monte Napoleone. But what doesn’t work is not so much the comparison with the Quadrilatero or Brera, areas where it is difficult to imagine that there are tenants to whom we can offer subsidized rentsas well as the difficulty of understanding which criterion has been adopted.
To always stay on the outer ring road, the houses mentioned above cost more than all those of viale Tibaldi, placed in the second tier. Tibaldi is one of the most attractive areas of Milan for rentals for the simple reason that it is a stone’s throw from Mouthfuls. In the avenue an average rent at an agreed rent in band two would cost for 70 meters 740 euros, a figure for which not even a studio apartment can be found. The fees agreed for the other bands are even lower: for example, it belongs to area 3 Corsica avenue, where for 70 meters in medium condition you get 660 euros per month, half of what the market asks for. According to immobiliare.it the cheapest area of Milan for rent is the Olmi district, where for 70 meters you still need around 1,100 euros per month. The average agreed value is 565 euros.
Price differences compared to the free market are not compensated by the significant ones tax advantages offered by the agreement: the dry coupon at 10% compared to 21% of free rents, the Imu reduced (in Milan) to 0.73% compared to the normal 1.14%. Then there are concessions provided by Milano Abitare, the Municipality’s affordable rental agency. Up to 2,000 euros for each new contract, up to 4,000 euros for the costs of restructuring the accommodation, a guarantee fund to cover the tenant’s arrears and reimbursement of the costs of signing the contract. A notable effort that must be acknowledged Marine Palace but in the end the things don’t add up for the owner and will continue not to add up until the rent bubble (and the price bubble and the mortgage rate bubble not just in Milan) deflates.
