Temporary rental is a leasing method designed to meet short-term housing needs. Often used by students, displaced workers, tourists and movers, these leases offer flexibility and many benefits to both owners and tenants.

‍

Below you will find everything you need to know if you are thinking of renting your apartment in this modality.

‍Contract duration  

The duration of the temporary rental contract is one of its distinguishing features. They generally last between one and twelve months, but they can be extended up to three years in some specific cases. For this, it is important to clearly establish in the contract the exact duration of the rental, as well as the conditions for a possible renewal or extension.

‍Legislation and regulations

Temporary rentals are regulated by the Ley de Arrendamientos Urbanos (LAU) in Spain, albeit with certain particularities. Owners must ensure that they are following local and national regulations, which may include:

‍

• Registration of the contract with the Housing Institute.  

• Declaration of the income obtained through the rental.  

• Compliance with the regulations on tourist housing, if applicable.

Contract wording

A temporary rental contract must contain key elements to ensure clarity and legal security for both parties. Some of these elements are:

‍

• Identification of the parties: name, ID and address of both the owner and the tenant.  

• Description of the property: complete address, surface and characteristics.  

• Duration of the contract: start and end dates of the lease.  

• Rent and method of payment: amount, frequency and method of payment.  

• Deposit or deposit: amount and conditions of return.  

• Additional expenses: who assumes the expenses of services such as water, electricity, community...  

• Conditions of use: rules on the use of the property, subleasing and care of the property.

Bailment and guarantees

The owner can require a security deposit, generally of one or two months' rent, to cover possible damage or non-payment. It is important to specify in the contract the conditions for the return of the security deposit and the possible reasons for its retention.

‍Owner's obligations

The owner has some obligations that must be fulfilled during the term of the contract, including:

‍

• Delivery of the property in good condition: the property must be habitable and in proper condition.  

• Carrying out necessary repairs: maintenance and urgent repairs to ensure good habitable conditions.  

• ‍Respecting the tenant's privacy: no access to the property without prior notice and consent of the tenant.

‍Tenant's obligations

The tenant also has important responsibilities, such as:

‍

• Timely payment of rent: as established in the contract.  

• Care of the property: maintain the property in good condition and do not make any modifications without permission.  

• Notification of damages: inform the landlord of any damage or problem in the property.

‍Contract resolution

The contract should specify conditions under which early termination may occur, initiated by either the owner or tenant. These conditions may include breach of obligations, non-payment, or personal reasons. Additionally, the procedure for key return and deposit refund should be clearly outlined.

‍Tax aspects

Income earned from temporary rental is taxable, and it is the owner's responsibility to report it correctly. In some cases, owners may be able to deduct some expenses related to the rented property. It is advisable to consult a tax advisor to comply with all tax obligations.

‍Owner benefits

• Flexibility in the use of the property: allows the property to be recovered in a short period of time, ideal for future personal use or other purposes.  

• Reduced risk of non-payment: short leases reduce the risk of non-payment because tenants tend to pay on time knowing that their stay is limited.  

• Potential to increase rent: can justify higher rates due to the convenience and flexibility they offer.  

• Adaptability to market changes: allows owners to adapt quickly to changing real estate market conditions.  

• Opportunity to use the property: ideal for owners who need the property at specific times of the year.