Yes, renting property to Diplomats is convenient

Rome, 05/11/2021

What is the diplomatic clause in rental contracts? Can diplomatic immunity be a problem? And above all, do Embassies pay rent?

The rental of prestigious buildings, luxury flats and villas to diplomatic staff, especially in Rome, is a crucial issue. Indeed, more than 300 embassies, consulates, military and commercial offices with thousands of employees are located in the Capital.

Therefore, the main question is whether renting property to Diplomats is convenient.  The answer is not clear-cut and depends mainly on the wishes, needs and expectations of the single property owners.

Surely an extremely interesting and fruitful opportunity due to both the sale of luxury villas and the rental of luxury flats in Rome.

Renting property to Diplomats is convenient

Renting to Diplomats: the Solution to all needs

For instance, if the landlord is mainly looking for distinguished and referenced people inclined to avoid difficulties, renting to diplomats could be the almost perfect solution.
If one is looking to earn income from one’s property, then renting to diplomats is truly ideal, as long as one is able to access this world.

It is also important to consider that diplomats are often subject to transfers every three or four years. This could be both a positive and negative aspect, depending on the objectives and needs of the property owner.

To someone who doesn’t want to commit to long contracts, it might be ideal.
On the other hand, if one wants to keep the property rented for long periods, once a relationship has been established with us at Easy Diplomacy Real Estate, it will not be difficult to rent it again to another official with the same needs.

Briefly, we can say that even those looking for short term rentals for luxury flats could find their profitable niche among diplomats, an environment that we know extremely well.

However, it is good to know that, before renting a luxury property in Rome, it is necessary to be informed on many aspects and to contact real experts in the field. It is not enough to just read online forums and it is advisable to contact directly an expert advisor. Only in this way it will be possible to have clear and precise answers on one’s particular case concerning the rental contract for an embassy or diplomatic staff.

The advantages of renting to Diplomats

In my personal experience, there are at least three solid and widely accepted advantages.

1. Payment guarantee

The landlord of prestigious properties in Rome will have the almost total certainty of always being paid. That’s because the Ministry of Foreign Affairs on which the diplomatic official depends can never have a ‘financial crisis’ (as ordinary citizens).

Moreover, renting luxury homes to diplomats, consuls or ambassadors means dealing with a public institution with all that it entails. Being insolvent for an embassy is not only improbable but also extremely inconvenient from various perspectives. Thus, we can state that embassies pay rent indeed.

2. Caring for the property

Diplomats often use their residence as a representative venue to invite other diplomats or have important public relations contacts. This necessarily involves taking care of the rented property. It is very likely that the owner will take great care of the property.
Does this seem like a minor issue?

3. Property recovery guarantee

Normally the diplomat’s term of office lasts four years, although in exceptional cases it may be extended by an additional two years.
At the end of the term of office, the diplomat is obliged to move with their family to another location or to return to their Country of origin thus vacating the property.
There is no danger of resorting to unfortunate cases, yet very popular on the Internet, such as that of being evicted by an Official, given that at the end of their mandate Diplomats are obliged to return to their Country.

Leasing property to diplomats in Rome: the main fears

Having said this, I think it is also necessary to address some much-debated aspects of renting luxury flats in Rome to diplomats.

Some owners of prestigious properties or luxury villas express fears or perplexity about renting their property to diplomatic personnel.
Others, on the other hand, are enthusiastic and would like to rent their properties exclusively to these people.
There are many forums on the Web where these issues are discussed, but not always in the correct manner.

Let us look at the main issues.

Diplomatic immunity and extraterritoriality

Ambassadors, Consuls and Diplomats usually enjoy the so-called diplomatic immunity which, however, is neither general nor indistinct.
It is not true, for instance, that such personnel is always exempted from another State’s jurisdiction.
Jurisprudence, in this case, has already expressed itself in the past in favour of possible recovery of sums in favour of the property’s tenant.

Can disputes arise? How they can be avoided?

Historically, case law recalls some disputes though extremely irrelevant when comparing it to the thousands of properties that have always been rented out.
Moreover, a good analysis of these disputes reveals some original weaknesses in the agreements.

So the real issue, from my perspective, is the following: the relevance of carrying out everything properly while relying on specialists in this field.

The best real estate agency, specialised in buying and selling luxury properties to diplomatic personnel, must know how to bring all parties together and lead them to reach a mutually beneficial agreement, highlighting the convergence of interests in meeting the agreements. In this way, the possibility of disputes is minimized.

Believe me, this can make a huge difference.

What is the diplomatic clause in rental contracts?

The diplomatic clause usually provides for the possibility of early termination of the lease. However, this may be enforced only in specific cases (e.g. early transfer to another location).
Usually, the notice period is two or three months.

Therefore, is this a problem for the owner?
A good real estate agency specialised in diplomatic personnel of many Embassies in Italy, at the Holy See and at International Organizations will have no difficulty in finding new tenants.

What kind of guarantees can an owner of luxury properties in Rome have?

There is no doubt that dealing with institutions such as Embassies and Diplomats can create a certain imbalance between the parties involved.
Therefore professional intermediaries are required to make a difference for those renting luxury villas or prestigious flats.

In this regard, we can really make a difference because we know people, institutions, dynamics, laws and working staff in consulates, embassies and military offices in Rome.
Because for years we have been working with them side by side and in areas that go far beyond real estate brokerage.

We at EDRE can bring to the table decades of professional relationships based on the trust the diplomatic world has been granting us for years.

The importance of discretion

Precisely because we know our business well, we know how important confidentiality and discretion are. It is often this aspect that favours the best relationships and the best objectives.

An owner who is willing to prevent his property from ending up on the Internet will be embraced by our company. Indeed, a large part of our portfolio is not public and cannot be publicly accessed.

Renting property to diplomats is convenient: our Experience

Alessandro GhirelliAs an experienced Real Estate Manager, I can say that all diplomats are well aware that their privileges are granted to them so as to perform important tasks.

Misusing their privileges for personal gains would seriously undermine their credibility and representativeness with the accrediting state.

Also, there is a technical aspect that needs to be taken into account: once the rental contract has been concluded, the rent will be paid by the Ministry to which the official belongs.

In short, as public officials, they are also subject to more stringent obligations. Therefore, they have no interest or advantage in not paying what is owed to the landlord.
No diplomat would ever compromise his own reputation and career by disregarding the host country’s laws.

Indeed, the very few occasions on which disputes between landlord and diplomatic tenant were in cases where no regular contract had been concluded.
When difficulties arose, these were driven by unclear or non-written agreements.

Why choosing EDRE

I hope I have provided enough information on why renting property to diplomats is convenient.

After years of consultancy for the Diplomatic World and sale and lease deals for hundreds of diplomats and international clients, in 2021 EDRE (Easy Diplomacy Real Estate) was founded, a real estate brokerage company and a subsidiary of Easy Diplomacy.

Our Mission is the mediation for the sale, purchase and rental of valuable assets for international clients and diplomats. We are the first real estate company specialised in this market niche and the only one with specific multi-year experience.

Here are some of the advantages of renting prestigious property to Diplomats in Rome with EDRE:

  1. Extensive presence in Rome’s real estate market
  2. Deep knowledge of the local market and the specific needs of the owners and the diplomatic world. Therefore, no one can find suitable solutions for both parties better than us
  3. Broad experience within the bureaucratic-administrative dynamics involved in the stipulation of agreements and contracts of this type
  4. Knowing how to manage the interests of the parties and how to balance rights and duties in favour of the best possible agreement
  5. Managing properties and relationships with the utmost discretion
  6. Employing multilingual staff and collaborators to overcome any language barriers
  7. We have legal consultants, international law experts, international sales and purchases.

Alessandro Ghirelli
Senior Agent & Consultant

Contact us now for Consultancy!

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