The temporary rental contract is included in the types of contracts established by the Urban Leases Law (LAU), specifically in the category of “use other than permanent housing (seasonal lease contract)”.
What is a temporary rental agreement?
A rental temporary contract is a housing contract that differs from traditional contracts in that it does not aim to establish a home or permanent residence.
This type of contract regulates the temporary stay of non-residents. It is characterized by a specific duration and purpose, such as work, study or medical situations.
The fundamental difference between the seasonal lease agreement and the permanent housing contract is its temporary nature, since the stay is not intended to be permanent.
Duration of the temporary rental
The law does not establish a specific duration for the temporary rental contract, but it does establish that it must be defined in the contract, leaving this decision in the hands of the landlord and tenant.
Although DFLAT recommends that the contract have a maximum duration of one year and a minimum duration of 1 month, the truth is that the law does not establish a maximum or minimum duration limit.
In the event of early termination of the contract, the owner may be entitled to compensation, unless otherwise specified in the contract.
This compensation may be equal to the sum of the monthly payments due until the end of the contract. It is therefore advisable to complete the contract in full.
Extension or renewal of the temporary rental contract
Extensions or renewals of the temporary rental contract are subject to the agreement of both parties, but if agreed, a new contract must be signed.
Unlike permanent housing contracts, the renewal of seasonal rentals is for a shorter period, usually less than a year, and as long as the original purpose of the contract is maintained.
Otherwise, it is possible to renew the temporary rental contract, but it is not recommended unless you have a well-written contract.
It is a fraud to hide a permanent contract under a temporary one. In this sense, a very long contract could be interpreted as a rental of a habitual residence, and a very short contract could be interpreted as a tourist contract.
The key for a temporary contract to be genuine is not the duration, but rather that it is not the tenant’s permanent home and the cause of the temporary nature of the contract, among other characteristics.
Termination of the contract before its expiry
In seasonal lease agreements and residential contracts, there are legal reasons to terminate rental contract early.
However, since it is a commercial agreement, the ideal is to renegotiate the contract in good faith. If this is not possible, it is essential to abide by the terms of the contract.
Conclusions of the rental temporal contract
Understanding the seasonal lease agreement (seasonal rentals) can help you access a customer profile that needs to rent a home for weeks, months, or even a year. However, to do it right, it is essential to have access and the right contract.
The best way to maximize security and income with a seasonal rental contract is to trust an agency that specializes in temporary accommodation and property management in Madrid.
Your property manager in Madrid
DFLAT Madrid has more than 20 years of experience with temporary rental contracts. If you are an apartment owner in Madrid, learn more about our property management services.
DFLAT facilitates the rental of corporate housing, accommodating executives, expatriates and high-level students with seasonal rental contracts. We market properties through various channels: B2C, B2B, Movers, Relocation, Travel and our own channels. These customers require temporary rental contracts.
Don’t wait any longer, contact DFLAT Madrid today and ensure the best management for your property and consider the temporary rental contract.
