Temporary rental agreement: what is it and how does it work?

May 26, 2023

3 minute read

More and more tenants are offering temporary rental contracts and more and more tenants want to rent under this type of lease.

But what are the advantages of temporary rentals and why do so many people consider it their best alternative?

In this article, we will not only explain what a temporary rental contract is, but also how it works, the different types that exist and the advantages they offer for companies and workers.

So read on and find out everything you need to know about this type of rental agreement.

What is a temporary rental contract?

A temporary rental agreement is a legal agreement between a landlord and a tenant that a property will be rented for a specified period of time.

This type of contract is ideal for situations where both the lessor and the lessee need flexibility in terms of the duration of the lease.

An example could be the case of posted workers moving temporarily to another city for a specific job, or companies needing accommodation for their employees during a specific project.

How does the temporary rental contract work?

The temporary rental agreement works in a similar way to a traditional rental agreement, with the difference that a specific period of time is set for the duration of the rental.

In fact, this rental time is usually much shorter.

Both parties agree on the terms of the contract, such as the monthly rent, the duration of the lease and the responsibilities of each party.

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Types of temporary rental contracts

There are different types of temporary rental contracts that vary according to the duration and purpose of the rental. Let's talk about each type:

Rent for days or weeks: ideal for holidays or short stays.
Monthly rentals: this is the most common and suits the needs of temporary workers or companies looking for accommodation for employees.
Seasonal rental: used to rent a property during a specific season, such as summer or winter.

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Advantages of temporary renting by months for companies and workers

Temporary renting by the month offers several advantages for both companies and employees:

Flexible contract

Flexibility in the duration of the contract makes it possible to adapt to the needs of each situation, whether it is a temporary project or a short-term job transfer.

Temporariness

The temporary rental contract allows companies and workers to save on accommodation costs by not having to commit to a long-term contract.

Customisable to the needs of those involved

Temporary rental contracts can be adapted to the specific needs of each case, including the equipment and services offered in the dwelling.

It is profitable for companies

Companies can save on accommodation costs by opting for temporary rental contracts instead of hotels or long-stay flats. In addition, they can save on taxes and government payments.

Working with higher incomes

Due to the temporary nature of the contract, rents are usually higher than in long-term contracts, which benefits the landlords in an economic sense.

How long can a temporary rental contract last?

The duration of a temporary rental contract may vary according to the needs and agreements between the parties involved.

Generally, these contracts can last from a few days to several months.

Of course, there are some cases where they may even extend for a year or more, although this is not the most common.

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What is the minimum duration of a seasonal rental contract?

The minimum duration of a temporary rental contract depends on the type of contract and the applicable local legislation.

In many cases, the minimum duration can be a few days, especially in holiday rental contracts.

However, for monthly rental contracts, the minimum duration could be one month.

It is important to note that the law does not establish the minimum duration of this type of contract.

What is the Temporary Rental Law like?

Temporary rental in Spain is governed by the Ley de Arrendamientos Urbanos (LAU), which sets out the rules for rental contracts for housing and commercial premises.

However, specific regulations may vary between autonomous communities and municipalities.

The LAU establishes two types of rental contracts:

Residential leases: these are for long-term rentals, with a minimum duration of three years and an extension period of one additional year if neither party communicates its intention not to renew the contract at least 30 days before the expiry date.
Non-dwelling tenancies: apply to temporary rentals and other situations that are not habitual dwellings. For this type of contract, the parties are free to determine the duration of the lease.

Are there extensions in this type of contract?

Yes, it is possible to extend a temporary rental agreement if both parties agree to do so.

The extension of the contract must be negotiated and agreed in writing before the end of the original term.

It is important to note that the extension may be subject to applicable local laws and regulations.

When can the tenant leave?

The tenant can leave at the end of the term of the rental contract.

If you wish to leave the property before the agreed date, you will have to negotiate with the owner to reach an agreement.

Penalties or sanctions may be applied for early termination of the contract, as provided for in the contract.

Conclusion on temporary rental agreements

In conclusion, temporary rental contracts are a flexible and convenient option for those who need short-term accommodation, either for work or personal reasons.

It helps to save costs and to have decent housing for as long as necessary.

It offers advantages for both tenants and landlords and is tailored to the specific needs of each situation.

Temporary rental agreement: what is it and how does it work?

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