Short and long-term rental contracts, which best suits your needs?

A SHORT-TERM rental contract (known in Spanish as a temporary lease) is one that is signed in the case of what is known as a seasonal rental, where the purpose for which the property is rented is important.

This type of contract is usually more beneficial for the landlord as the tenant does not get automatic tenancy rights and the contract can be cancelled more easily without the need for going to court for eviction.

In a temporary lease, the property is not considered the tenant’s permanent home. Its duration can be only a few months, or it can last for several years. Everything will depend on the conditions agreed by both parties.

Where it differs to a regular long term rental contract

The main difference between a temporary lease and a regular lease is that the temporary rental contract makes paramount the use that the tenant is going to make of the property.

This could be work-related, academic or leisure needs, in most cases.

In a regular lease, the property is considered to be the tenant’s permanent home.

It should be noted that, since the latest amendments to Law 29/1994 on Urban Leases (LAU) were approved in April 2019, the minimum duration of this type of contract has been increased from three to five years. If a shorter duration is agreed, the contract is automatically extended on an annual basis until the minimum term has been fulfilled.

These contracts give the tenant more rights whereby the tenant can end the lease on the annual renewal date. On the other hand the landlord cannot cancel the contract just because they want to and must have just cause for eviction such as the tenant being in breach of the contract.

These evictions sadly are usually lengthy and go through court.

It is important to differentiate between temporary leases and tourist rental contracts. These have different characteristics, as do contracts for business premises and sale of a running business with stock in trade (‘going concern’).

Our friendly team at Alba Consultas can draft all types of contracts, also advise you which contract is best for your circumstances and check the legality of the contents of your existing contract.

For any help and advice on legal issues, you can contact legal eagle, Victoria Wright at ALBA Consultas. Email: Call (+34) 96 561 5061 / +34 692 386 293 or drop into the office at C.C. Europeo, Local 168, Ctra Teulada – Moraira. 03724


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