Short-Term Rental Contract: Legal Guide and Clauses 2026

Premise

In the context of residential property rentals, short-term rentals are distinguished by certain structural peculiarities, which, if not properly regulated, expose the landlord to contractual, tax and administrative liabilities. Unlike ordinary rental contracts, in fact, short-term rentals:

• Do not exceed thirty days in duration, even if non-consecutive;

• Do not require mandatory registration with the Revenue Agency (except in specific cases);

• Are subject to autonomous tax and reporting regulations;

• Often take place through digital platforms that introduce additional conditions (e.g. Airbnb, Booking, etc.).

This article aims to provide a technically grounded, operational framework of the contractual precautions recommended when drafting a short-term rental contract for tourism purposes.

Regulatory Framework

The general rules on leases are set out in Articles 1571 et seq. of the Civil Code. Art. 1571 defines a lease as the contract by which one party undertakes to allow another party to enjoy a movable or immovable thing for a given period of time, in exchange for a specified consideration.

The short-term rental is defined, for tax purposes, by Art. 4 of Decree-Law 50/2017, converted by Law 96/2017:

“Short-term rentals are defined as residential property lease contracts with a duration not exceeding 30 days, including those providing for the supply of linen and cleaning services, entered into by natural persons, outside the exercise of business activity, directly or through intermediaries carrying out real estate brokerage activities, or entities managing online portals, putting persons seeking a property in contact with persons who have residential units to rent.”

With regard to requirements:

• Registration: there is no obligation to register contracts lasting less than 30 days, unless extensions cause the threshold to be exceeded

• Tax regime: the flat-rate tax (cedolare secca) at 21% applies (raised to 26% from the second property rented, starting from 2024), unless the option for ordinary IRPEF is chosen

• Intermediation: online portals that collect rent on behalf of the landlord assume withholding agent obligations (21% withholding, tax reporting, data transmission)

Continuous and organized management of the activity, even if relating to contracts lasting less than thirty days, may result in reclassification as business activity, with the consequent obligation to register for VAT and compliance with the relevant tax and administrative rules.

Intended Use: Exclusively for Tourism

To prevent the contract from being reclassified as an ordinary residential lease, it is essential to specify that the property is granted exclusively for tourism purposes, in accordance with the definition contained in the Tourism Code (Art. 53 of Legislative Decree No. 79 of 23 May 2011).

Suggested Clause:

“The tenant declares that the residential unit is granted for exclusively temporary and tourism-related needs, and undertakes not to establish domicile, residence, nor to use it as a habitual dwelling.”

Withdrawal and Cancellation: Cancellations and No-Show

It is advisable to expressly regulate cases of early termination of the relationship, distinguishing between early cancellation, communicated before the start of the stay, and failure to show up (no-show).
The contractual freedom recognised by Art. 1322 of the Civil Code allows the parties to freely determine the content of the contract, within the limits imposed by law. Conventional withdrawal is based on Art. 1373 of the Civil Code, which governs the right of withdrawal granted to one or both parties.

• Early cancellation. The contract may provide that, if the tenant gives notice of withdrawal within a predetermined period (for example, 7 or 14 days before the start date), they are entitled to a partial or full refund of the rent paid, possibly net of a fixed penalty as reimbursement of expenses.

• Failure to show up (no-show). It is legitimate to provide that, in the event of failure to show up without notice, the entire amount paid — as a confirmatory deposit or advance rent — shall be retained by the landlord. The clause operates as a contractual penalty pursuant to Art. 1382 of the Civil Code, serving as an agreed pre-determination of damages.

In both cases, the clauses must comply with the principle of good faith and must not be manifestly disproportionate, to avoid the risk of judicial reduction of the penalty pursuant to Art. 1384 of the Civil Code.

For further insight into the rights and risks of contractual withdrawal, see the article dedicated to contract withdrawal.

Property Damage and Tenant Liability

Pursuant to Art. 1588 of the Civil Code, the tenant is liable for any damage caused to the property, unless proven otherwise. It is therefore advisable to include a clause that recalls the obligation to restore the original condition of the property and its appurtenances.

The contract should prohibit: – subletting (Art. 1594 Civil Code); – the organisation of parties and disruptive events; – use in breach of condominium rules.

Non-performance may be sanctioned by termination of the contract, pursuant to Art. 1456 of the Civil Code.

Security Deposit: Amount and Return

The inclusion of behavioural clauses is particularly important in tourist rentals.

“The tenant is required to diligently look after the property and to compensate for any damage caused, pursuant to Art. 1588 of the Civil Code, whether directly or through the actions of persons introduced by the tenant.”

There is no mandatory legal criterion regarding the amount of the security deposit: it must be determined in proportion to the value of the property, the duration of the rental and the potential risk of damage.

As a general rule, for short stays of 2–14 days, the deposit is often equal to 20–30% of the agreed consideration; for monthly contracts, one full month’s rent is considered proportionate.

The amount may only be withheld in the presence of documented damage, for example through inspection reports, photographs or expert assessments. It is advisable to specify the return terms, indicating, for example, 10 working days from the end of the stay.

Registration and Tourist Tax

Although registration with the Revenue Agency is not mandatory for contracts lasting less than thirty days (Presidential Decree 131/1986, Art. 3, paragraph 2), it may become necessary if stays are repeated with the same tenant, if there are contractual extensions, or if the management takes on a systematic character.

Furthermore, the contract must specify whether the municipal tourist tax is included in the rent or to be paid separately, indicating, where possible, the reference to the applicable municipal resolution.

If municipal regulations provide for the tourist tax, the landlord is required to:

• Collect the amount;

• Pay it to the Municipality;

• Keep appropriate documentation.

The procedures are generally established by municipal regulations or resolutions (available on the institutional website of the relevant Municipality).

Obligation to Report Guests

Art. 109 of the Consolidated Law on Public Security (Royal Decree No. 773 of 18 June 1931) requires the landlord to report, within 24 hours of arrival, the personal details of guests to the Police Headquarters via the Alloggiati Web portal.

This requirement is also necessary for stays of just one night. Failure to report, even through mere error, may constitute a criminal offence. It is advisable to make the handover of keys conditional upon prior receipt of the guests’ identification documents.

Protection Against Harmful Reviews (Airbnb)

The publication of false, biased or reputationally harmful reviews of the landlord constitutes a concrete risk in rentals managed through digital platforms. In many cases, a single negative comment, if unfounded or disproportionate, can result in a significant reduction in the listing’s visibility and, consequently, in the profitability of the activity.

The Airbnb platform allows hosts to include supplementary contractual conditions, provided that these are made known to the potential guest before booking and do not conflict with the platform’s general policies. In particular, such conditions may not limit fundamental consumer rights, nor circumvent obligations imposed by applicable law.

It is therefore possible — and advisable — to include in the contract a reputational protection clause, invoking the duty of contractual good faith and prohibiting the dissemination of untrue or objectively disparaging statements. An effective formulation could be as follows:

“The parties acknowledge that any reviews published online must correspond to the truth and be based on experiences actually gained during the stay. In the event of false, defamatory content or content that unjustly harms the landlord’s reputation, the landlord reserves the right to take legal action for damages pursuant to Art. 2043 of the Civil Code, both of a pecuniary nature and to reputation.”

In this regard, tortious civil liability arises where the publication of reviews results in an unjustified injury to the professional reputation of another, with the consequent right to compensation. In court proceedings, the burden will be on the landlord to prove the falsity of the statements and the causal link between the review and the damage suffered (e.g. drop in bookings, downgrading of the listing, loss of visibility on the platform).

In Closing

A well-structured short-term rental contract, drafted according to clear and consistent legal criteria, constitutes the primary instrument for preventing disputes, regulating relations between the parties and protecting the landlord from a financial, reputational and tax perspective. The adoption of specific clauses, express regulatory references and practical precautions allows the rental activity to be carried out in full security.

Disclaimer: This text is for informational purposes only. For specific advice tailored to the individual case, it is recommended to consult a lawyer duly registered with the relevant professional body.