The occupant fails to pay rent and is vending off your furnishings: what steps to take and how to proceed

In the event of a breach of lease by a tenant, prompt action must be taken with the assistance of a legal professional. When a tenant not only accrues rent arrears but also sells the landlord's furniture, the landlord faces dual damages. In such a scenario, it is crucial to initiate two processes simultaneously: civil (for eviction and debt recovery) and criminal (for misappropriation of another's property).

Crucial! Refrain from taking the law into your own hands. Unauthorized acts such as changing locks, cutting off utilities, or seizing the tenant's possessions are considered criminal offenses in Italy (Articles 392 and 393 of the Italian Criminal Code).

1. Criminal responsibility: theft and sale of the landlord's furnishings

The furnishings and appliances listed in the contract's inventory remain the landlord's property. The tenant is granted temporary use of them. Any sale, removal, or transfer of these items to third parties constitutes a criminal offense.

How such actions are categorized:

• Misappropriation of property (Appropriazione indebita - Art. 646 of the Italian Criminal Code): Primary offense. Applicable when a tenant dishonestly appropriates property entrusted to them temporarily for personal gain. Punishable by imprisonment and fines.
• Aggravated theft (Furto aggravato - Art. 624-625 of the Italian Criminal Code): If a tenant causes damage by dismantling or moving furnishings (e.g., built-in fixtures, plumbing, or air conditioning) through actions like breaking doors or damaging walls, it constitutes theft with additional damages, leading to more severe penalties.

Steps to report to the police (Denuncia-querela):

1. Deadlines: The report must be lodged with the police or carabinieri within 3 months of discovering the losses.
2. Evidence: Include a copy of the signed lease agreement, inventory of belongings, and images of the property.
3. Documenting the sale: Present screenshots of online sale listings of your items, correspondence, and statements from neighbors.

2. Legal Measures: Safeguarding Property and Seeking Redress

The sale of furnishings constitutes a significant breach of contract, justifying immediate termination and compensation for losses.

• Asset freezing (Sequestro conservativo/giudiziario - Art. 670-671 of the Italian Civil Procedure Code): If there is a risk that the tenant may sell remaining belongings or withdraw funds, legal recourse can be sought to freeze accounts or assets promptly.
• Recovery of damages: Through legal channels, one can claim compensation for the market value of sold items, repairs to property damages, and losses from the inability to rent out the unfurnished property.

3. Eviction process (Sfratto) and debt recovery

For residential premises, late payment of rent by even a single month (20 days after the due date) or utility bill arrears exceeding two months' rent serve as grounds for commencing the eviction process.

Key steps in eviction:

1. Notice (Messa in mora): Issuing an official demand (via PEC or registered mail A/R) for debt settlement within 10-15 days.
2. Eviction notice (Intimazione di sfratto): Filing a claim in court and serving the tenant with a summons through legal representation.
3. Court proceedings: In case of non-payment or non-appearance by the debtor (even after any 90-day extension granted by the court), the eviction is officially sanctioned (convalida di sfratto).
4. Forced eviction: If the tenant refuses to vacate voluntarily, a court officer (Ufficiale Giudiziario) can be summoned, with authority to involve law enforcement and a locksmith if necessary.

4. Dealing with an absconding tenant who hasn't returned keys

• Returned keys officially: Upon signing a handover certificate (verbale di riconsegna), cancel the contract and take immediate possession.
• Keys not returned (tenant missing): Landlords lack the right to enter the property unilaterally, as this could lead to charges of violating home inviolability (Article 614 of the Italian Criminal Code). A court officer must confirm the abandonment officially and return the keys.

5. Recovery of debts and tax benefits for the landlord

An eviction ruling does not absolve the tenant of financial obligations. Upon legal request, a judge can issue a debt recovery order (decreto ingiuntivo) concurrently with the eviction. Failure to pay may result in freezing of bank accounts or withholding up to a fifth of the debtor's official income.

Are taxes due on unpaid rent?

As per Art. 26 of the Italian Tax Code (TUIR), unpaid rent is not taxable income once the tenant receives an official eviction notice or court order for payment.

• Tax relief (Credito d'imposta): Any taxes previously paid on rent not received can be credited back to the landlord by the state. This credit can be utilized in the next tax declaration (Modello 730 or Redditi PF) or claimed as a refund, supported by documentation of eviction proceedings.