What is a temporary rental contract?
In Spain a temporary rental contract or alquiler temporal or de temporada is a rental agreement signed for a specific period of time, which is usually less than a year.
As the name suggests, it’s intended to be for temporary accommodation, without the tenant making a permanent home there.
This type of rental is used by people who, due to work situations, study or other commitments, do not want to commit themselves to a long-term contract.
In Spain temporary contracts usually last for a set number of months or weeks, not exceeding one calendar year (more on why below).
It’s a flexible arrangement and can be extended as long as both parties agree. It’s common for landlords to request a deposit of two months up front for these sorts of rents, although this is becoming more and more common in the wider market too.
The main difference between a tourist rental (piso turístico in Spanish) and regular short-term rentals is basically the length of the stay.
Tourist rentals have a maximum of 31 days, while seasonal rentals have a minimum duration of 32 days up to a maximum of 11 months.
The pros of temporary accommodation in Spain
Flexibility
The main advantage of temporary rental contracts for tenants is the flexibility they give you.
These sorts of contracts are perfect for students studying abroad and looking for a place to stay for 3, 6 or 9 months, or for people coming to Spain on short-term internships or job placements that last less than a year.
Equally, with the rise of remote working and digital nomads, many landlords have pivoted to the short-term market and offer rental contracts for stays as short a month or two at a time.
Signing a short-term contract makes things simple: you know exactly when the contract starts and ends, and therefore exactly how much you’ll be paying in total and when you’ll need to move out.
Short-term stays also make sudden price increases less likely, if not impossible, though overall, short-term contracts might not be your best bet if you’re trying to save money (more on that below).
READ ALSO: How to find temporary accommodation in Spain when you first arrive
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Temporary contracts can be extended
Technically speaking temporary contracts can be extended as long as there is agreement between both parties.
It is important that any contract extension is made in writing and that the reason for the temporary nature of the contract is justified.
Rental experts Delagua Inmuebles state that, regardless of the extension, if a temporary contract is to be extended “Whether it is for work or studies, it must be stated in writing that it is not the tenant’s habitual residence.”
An increasing number of landlords in Spain are capitalising on the need for flexible accommodation to offer their properties as temporary lodgings, at higher prices than long-term rents of course. (Photo by Gabriel BOUYS / AFP)
The cons of temporary rental contracts in Spain
More expensive
The main disadvantage of short-term contracts is they tend to be more expensive than long-term rents. Landlords know that people seeking short-term contracts often need to find something fast, and take advantage of that.
With the rise of remote workers and study abroad, many landlords are looking to make a quick buck on the backs of foreigners coming to Spain.
They are (partly) to blame for rising rents and may be regulated soon
If you read The Local you’ll be well aware of the discontent in Spain about rising rents and its relation to tourism. You can read our extensive coverage of it here, but this is partly related to the growing anti-tourism movement.
One of the main gripes is the increasing number of short-term rental units, something that decreases the social housing stock for locals and drives up prices.
However, the national government is also planning to clamp down on monthly and seasonal accommodation, and one of the measures being proposed is that temporary tenants give a valid reason and proof (internship, job contract, admission to study) for only renting for a few months, which may ultimately make it harder for those who don’t fix inside a set box.
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Short-term rents are used to bypass government rules
Many landlords choose to go for short-term rental contracts as they don’t have to fully abide by the newest Housing Law reforms.
For example, estate agencies often ask you to pay honorarios (fees) for their work (making calls, printing contracts, and so on) usually equal to at least one months rent.
It is now illegal for long-term rents because landlords are supposed to cover these fees, but under a short-term contract this is all above board still (technically speaking) so you’ll probably have to fork out more money just to secure the flat.
READ ALSO: Do I have to pay the estate agent a commission if I rent in Spain?
It has also previously been reported that landlords have opted to rent out their properties on a temporary basis to circumvent rent caps introduced by the government on long-term leases.
In short, landlords are renting out properties for 11 month contracts in order to avoid year-long contracts and therefore the rules on prices rises among other things outlined in Spain’s housing legislation, most of which come into effect after a year.
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Conclusion: Why not a long-term contract?
So there are arguably more cons than pros to temporary rental contracts in Spain, as you’re more exposed to high rents, you have fewer rights, and there’s a real possibility that it’s going to get tougher to rent this kind of accommodation in the near future.
Consider this – if you know you’re going to stay in Spain for at least six months, you may as well sign a long-term rental contract. That is because if you break contract after the six-month mark, you are not liable to pay a penalty for it, and you get to enjoy all the benefits of long-term contracts.
