11-month contract: long season or not?

EDITORIAL |

The Urban Leases Law regulates rental contracts, those that refer to habitual dwellings. For rentals of usual housing, a minimum duration of 5 years is established for natural person lessors and 7 years for legal persons. However, there is a mistaken belief that signing 11-month contracts avoids the compulsory extensions established by law. This is a mistake. These contracts have the same obligations and rights as the contracts initially signed for one year, therefore it is possible to apply extensions, even if the contract was initially signed for 11 months (we reiterate).

But what should we consider when signing a short-term lease? We will explore this question in detail in this article. We hope to resolve the doubts of many landlords and tenants with this question, since this query is repeated more frequently since the entry into force of Law 12/2023, of May 24, for the right to housing.

The Urban Leases Law (LAU) allows housing leases to have a duration freely agreed by both parties, and establishes that in the case of rental of a habitual residence, they will be automatically extended up to five years if the lessor is an individual and up to seven years if the lessor is a legal entity. Although it is common to agree on an 11-month rental contract, this does not mean that it is less valid than a one-year contract, or that it cannot be extended if the tenant's needs so require. Both options have the same degree of mandatory extension. In conclusion, 11-month leases are legal and governed by the same rules as any other lease.

As previously mentioned, the 11-month lease is perfectly legal. However, it is important to take into account certain details to avoid setbacks. As with any other lease, the duration of the lease must be agreed upon by both parties freely and without coercion. Once the contract is signed, neither party may change its duration without the express consent of the other.

It should be recalled that housing leases are governed by Article 2 of the LAU, which states that a housing lease is: "a lease of a habitable building whose primary purpose is to satisfy the permanent housing needs of the lessee".

We emphasize that it is a mistake to think that because the contract is for less than one year, it should not be automatically extended up to the legal maximum of five years, and the contract must be renewed, since they are mandatory extensions. While the lease is legally valid, the landlord has exactly the same obligation to extend the agreement as if it had been signed for a full year. If the tenant wishes to extend the lease, the landlord's acceptance is required.

In summary, the 11-month lease is legal and both parties have the same obligations and responsibilities as in a full-year lease. The tenant must take care of the property and keep it in good condition while the landlord must comply with all his legal obligations at all times.

However, it is important to keep in mind the difference between a rental contract for use as a permanent residence and one for temporary use. The former is signed with the intention of using the property as a permanent residence for an extended period of time while the latter is used for situations where temporary accommodation is needed such as vacations (contracts longer than 31 days) or temporary business travel. In both cases, having a clear and complete contract will be essential to avoid misunderstandings.

The distinction between having to forcibly extend the lease for five or seven years or not having such obligation does not lie in the term agreed in the lease, but in the specific type of lease, and the circumstances of the tenant that led to the conclusion of the lease, between the two parties. There are two types:

1) Leasing for use other than for permanent residence: implies using the property for purposes other than permanent residence such as: rental of housing (seasonal rental or housing for tourist use) or commercial premises or offices.
2) Temporary leasing: used when housing is needed for short periods of time such as vacations or temporary travel.

It is important to note that these specific types are not subject to the same rules on forced extensions as a regular lease would be.

If you have any questions about this specific topic or need additional information about residential leases, please leave them in the comments and we will be happy to help you resolve them.

From our real estate agency we provide service in Malaga city and throughout the province of Malaga, we will be happy to answer your questions.