Temporary rentals

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In this article, we will discuss temporary rentals, based on the legislation and jurisprudence of Spain. It is a challenge for us to make this publication, but given the numerous inquiries we have received in our real estate agency, we have been encouraged to write this post.

How to define what a temporary rental contract is?

The temporary rental contract is a contract in which the tenant decides to use a property for purposes other than their habitual residence. The objective of the temporary lease is not to establish a permanent residence but to have a place for a specific period or a temporary need.

According to article 3.2 of the LAU, these contracts refer to "properties rented for the season, whether for vacations, to carry out industrial, commercial, professional, or recreational activities."

What is the regulation of temporary contracts?

The regulation of temporary housing contracts in Spain is minimal, but it does make clear what the motivation for entering into such a contract must be. For a seasonal contract to be established, there must be a prior justification of the temporality or limitation of use over time by the tenant.

In another entry of our blog, we have written about the 11-month contracts, those that on some occasions the landlord mistakenly believes do not obligate him to the extensions established in the LAU, but this is not the case.

Returning to the topic that brings us to today's writing, temporary contracts must always have justification for the tenant's temporary use, so that it can be established in accordance with the law. The clearest and most common examples of this type of contract are those aimed at the tenant's stay during the duration of their work, vacations, or studies. Therefore, it will never be to satisfy the permanent housing needs of the tenant.

It is worth noting that temporary contracts are not governed by the same provisions as those for permanent housing contracts. In the case we are discussing today, temporary contracts are governed by what both parties freely agree upon (what the contract clauses establish), as provided in Title III of the aforementioned LAU and, subsidiarily, by the Civil Code.

We mention Catalonia, as it approved a law that came into force to regulate the prices of temporary rentals and rooms, called the Urgent Measures Decree on housing. This Decree came into force on April 26, 2024. However, the price regulation in this Law does not affect those rentals that have leisure, vacation, or recreational purposes.

Generally, a temporary rental contract is signed due to a change of city, where tenants need the property for studies, vacations, work, etc. The duration of this type of contract usually ranges from 32 days to 11 months, but the duration of the contract can be extended depending on the conditions and justification of the tenant's temporality.

It is important to know the different categories of rental contracts to avoid confusion. In addition to the temporary rental contract, there are two other main types: the tourist rental contract and the habitual rental contract. The habitual rental contract applies to properties intended to be permanent residences, where tenants seek to settle and establish a life in the property.

In conclusion, a temporary rental contract is a solution to meet short-term housing needs for a tenant. Temporary rental contract: A contract to meet the need for accommodation for a specific period, whether for months or even years.

Tourist rental contract: A short-term contract that can extend up to a few weeks, offering accommodation services in homes.

Characteristics of a temporary rental contract In a temporary rental contract, it is made clear that the property cannot be used as a habitual or permanent residence.

The start and end dates of the contract must be specified, and the end date must have a justification. Once the contract ends, no prior notice will be required, as it will be automatically terminated. It is necessary to include a payment guarantee in a temporary rental contract, which must be equivalent to two rental periods as established in Article 36 of the Urban Leasing Law. This amount must be deposited in the corresponding public office of the Autonomous Community where the property is located, in the case of Andalusia in AVRA (The Housing and Rehabilitation Agency of Andalusia). This guarantees payment for damages or defects in the property and compliance with obligations by the tenant, but it should be noted that the deposit is not a payment method for the tenant, for example, to cover the last month's rent.

Seasonal rental contracts. Essential clauses

Essential clauses of a temporary rental contract for the season.

Clause 1: The reason for the temporary stay must be detailed, specifying the activities that the tenant will carry out during that period, whether work, studies, or others.

Clause 2: The exact duration of the contract will be established, indicating the start and end dates. Clause 3: The monthly rent, payment method, and payment deadline will be agreed upon and detailed in this clause. Clause 4: A detailed inventory of the items and furniture included in the lease will be included. This inventory will be signed and attached to the contract by both parties.

Clause 5: In case the tenant must bear the community expenses, the monthly amount will be specified in this clause.

Clause 6: The conditions and economic penalties in case of termination or breach of the contract will be established, including the return of the keys at the end of the agreed period.

Clause 7: The amount of the deposit provided by the tenant will be indicated. In addition, additional clauses may be added as necessary, such as the maximum number of occupants allowed, the acceptance of pets, or whether expenses are included or not.

The contract can be terminated early for breach, due to various reasons: - Not paying the corresponding rent. - Engaging in annoying, harmful, or dangerous activities for other tenants or neighbors. - Causing damage to the property. - Making modifications without the owner's consent. If a breach occurs in the temporary rental contract, it is important to keep in mind what is stipulated in the signed contract. Among the clauses to consider is the one that specifies the conditions for termination or cancellation of the contract, including possible economic penalties for breach. It is important to highlight that tenants can terminate housing rental contracts after 6 months, as long as they pay a penalty. However, in the case of temporary rental contracts, the provisions established by both parties apply. Seasonal rental contract Frequently asked questions What is the difference between tourist and seasonal rental? The main difference lies in the duration of the contract. Seasonal rental usually lasts from 32 days to 11 months, while tourist rental cannot exceed 31 days. Additionally, the tourist rental contract must be exclusively used for vacation purposes, as its name implies. Therefore, it is common for it to be furnished and offer hotel services for this purpose. In contrast, long-term rental contracts may have a different purpose, such as work or study reasons. Is it possible to extend a long-term rental contract? Extensions and the conditions to exercise them can be freely agreed upon by both parties. For example, they can be established extensions of 6 months, 1 year, etc. The important thing is to justify the temporality of the contract (work, studies, etc.) to make it clear that it is not the habitual residence. If this is not fulfilled, the contract would be considered a rental of a habitual residence, with the consequent right of the tenant to wait until the fifth year of the contract. Can I register with a long-term rental contract? Since it is not a habitual residence, tenants cannot register in a property with a long-term rental contract. Tenants must maintain their registration at their primary residence. How to draft a long-term rental contract between individuals? Temporary housing rental contracts provide both parties with greater flexibility to establish the duration and clauses they deem appropriate. It is important to highlight that in Spain, these contracts do not need to be made before a notary, so if they are correctly drafted on a sheet and signed, they have full legal validity. How is a temporary housing rental contract registered? The registration of a temporary housing rental contract is optional and declarative, meaning it is not mandatory to register it or take it to a notary. There are no penalties for not doing so. The registration falls on the parties involved and can offer benefits for both, such as providing security in the sale of the property or in the payment of rental fees. If the contract is to be registered, it must be presented at the corresponding Property Registry after paying the corresponding taxes and fees. How is a seasonal rental contract terminated? If you wish to terminate a rental contract of If you want to end the rental season early, you must notify the landlord at least 30 days in advance. What is the minimum duration of a temporary rental contract?

Currently, the legislation is silent regarding the minimum duration that a contract for use other than housing must have, and whose purpose is a temporary rental. The duration will depend on the purpose of the rental and what both the landlord and tenant agree upon. However, to give you a general idea, it usually ranges from a minimum of 32 days to a maximum extension of 11 months.