Abstract
The Italian Civil Code distinguishes between so-called non-productive leases, like residences, and productive ones, like farms, and has always exercised strict control over landlord—tenant contracts. Since the 1940s the law has favoured the tenant to such a degree as to run counter to the Civil Code. The most recent legislation, Law 203/1982, embodies efforts to produce a fairer arrangement. Under it, duration of contract and the amount of rent which may be charged are strictly controlled. It also embodies measures aimed at encouraging fixed capital formation by both parties. It remains to be seen how successful this new law will be.
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