EDITORIAL |
In this article we are going to deal with temporary rentals, based on the legislation and jurisprudence of Spain. It is a challenge for us to make this publication, but given the numerous queries we have received in our real estate, we have been encouraged to write this post.
How to define what is a temporary rental agreement?
The temporary rental contract is a contract in which the tenant decides to use a property for purposes other than his or her usual dwelling. The purpose of the temporary lease is not to establish a permanent residence, but to have a place for a certain period or a temporary need.
According to Article 3.2 of the LAU, these contracts refer to "properties leased on a seasonal basis, whether for vacation, 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 must be the motivation that leads to the conclusion of the contract. For the conclusion of a seasonal contract there must be a previous justification of the temporary nature or limitation of use in time of the tenant.
In another post of our blog, we have written about the 11-month contracts, those that sometimes mistakenly believe that the lessor is not obliged to the extensions established in the LAU, but this is not so.
Returning to the subject that today's drafting brings us, the temporary contracts always must have the justification of use of temporality of the tenant, so that this one can be celebrated with all those of the law. As the clearest and most common examples of this type of contracts, we cite those that have as purpose the permanence of the tenant during the time of duration of its work, vacations, or studies. Therefore, it will never be to satisfy the permanent housing needs of the tenant.
It should be remembered that temporary contracts are not governed by the same articulation as those housing contracts for permanent use. In the case we are dealing with today, temporary contracts are governed by what is freely agreed by both parties (what is established in the clauses of the contract), in the provisions of Title III of the aforementioned LAU and supplementarily by the Civil Code.
We mention Catalonia, since it passed a law that came into force to regulate the prices of temporary rentals and rooms, called Decree Law of urgent measures 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.
Usually, a temporary rental contract is signed due to a change of city, where the tenants need the property for studies, vacations, work, etc. The duration of this type of contract generally ranges from 32 days to 11 months, but the duration of the contract can be extended further, depending on the conditions and justification of the temporary nature of the tenant.
It is important to know the different categories of rental agreements to avoid confusion. In addition to the temporary rental agreement, there are two other main types: the tourist rental agreement and the usual rental agreement. The usual rental contract applies to properties intended to be permanent residences, where tenants seek to settle down 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 housing for a specific period, either for months or even years.
Rental contract for tourist use: A short-term contract that may extend up to a few weeks, offering lodging services in dwellings.
Characteristics of a temporary rental agreement In a temporary rental agreement, 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 is 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 Lease Law. This sum must be deposited in the public office corresponding to the Autonomous Community where the property is located, in case of Andalusia in AVRA (The Housing and Rehabilitation Agency of Andalusia). This guarantees the payment of damages or flaws in the property and the fulfillment of the obligations on the part of the tenant, but the deposit is not a method of payment of the tenant, for example to pay the last monthly payment.
Seasonal rental contracts. Indispensable clauses
Essential clauses of a temporary seasonal rental contract.
Clause 1: Reason for the temporary stay must be detailed, specifying the activities that the tenant will carry out during that period, whether work, studies, or other.
Clause 2: The exact duration of the contract shall be established, indicating the start and end dates of the contract. Clause 3: The monthly rent, method of payment and due date of payment shall be agreed and detailed in this clause. Clause 4: A detailed inventory of the fixtures and furnishings included in the lease shall be included. Said inventory shall be signed and attached to the contract by both parties.
Clause 5: In the event that the tenant must pay the community expenses, the monthly amount shall be specified in this clause.
Clause 6: Conditions and economic penalties will be established in case of termination or breach of contract, including the return of the keys at the end of the agreed period.
Clause 7: The amount of the deposit paid by the tenant shall 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 lease may be terminated early for default, due to a variety of reasons: - Failure to pay the corresponding rent. - Engaging in activities that are annoying, harmful or dangerous to other tenants or neighbors. - Causing damage to the property. - Making alterations without the landlord's consent. If there is a breach in the temporary rental agreement, 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 financial penalties for non-compliance. It is important to note that tenants may terminate rental housing contracts after 6 months, provided that 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 a tourist rental and a seasonal rental? The main difference lies in the duration of the contract. The seasonal rental normally has a duration of 32 days to 11 months, while the tourist rental cannot exceed 31 days. In addition, the tourist rental contract must be used exclusively 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 agreements may have a different purpose, such as work or study purposes. Is it possible to extend a long-term rental agreement? Extensions and the conditions for exercising them can be freely agreed between both parties. For example, extensions of 6 months, 1 year, etc. can be established. The important thing is to justify the temporary nature 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 as a habitual residence rental contract, with the consequent right of the tenant to wait for the fifth year of the contract. Can I register with a long-term rental contract? Since it is not a regular dwelling, tenants cannot register in a dwelling with a long-term rental contract. Tenants must maintain their registration at their primary residence. How to draw up a long-term rental agreement between individuals? Temporary housing rental contracts give both parties greater flexibility to establish the duration and the clauses they consider relevant. It is important to note that in Spain these contracts are not required to be notarized, so if they are drafted correctly on a sheet of paper 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, which means that it is not obligatory to register it or take it to a notary's office. There are no penalties for failure to do so. Registration is the responsibility of the parties involved and can offer benefits to both parties, such as providing security in the sale of the property or in the payment of rental fees. If the decision is made to register the contract, it must be filed with the appropriate Land Registry after the appropriate taxes and fees have been paid. How is a seasonal rental contract terminated? If you wish to terminate a seasonal rental contract early, it is necessary to notify the landlord at least 30 days in advance. What is the minimum duration of a seasonal rental contract?
At present, the law is silent as to the minimum period of time that a contract for use other than as a dwelling, the purpose of which is a temporary rental, must be for. The duration will depend on the purpose of the rental and what both the lessor and the lessee agree upon. However, to give you a general idea, it usually ranges from a minimum of 32 days to a maximum of 11 months.