Apartool | Everything you need to know about temporary rental contracts: advantages and types

What is a temporary rental contract?

A temporary rental contract is a legal agreement that establishes the lease of a property for a specific, limited period. Designed to cater to the flexibility needs of both landlords and tenants, this type of contract is ideal for temporary situations, such as short-term work projects, study stays, or housing needs during life transitions.

How the temporary rental contract works

The temporary rental contract is similar to traditional lease agreements but with a defined duration. These agreements specify all important terms, such as rent amount, deposits, maintenance responsibilities, and the exact rental period. Unlike long-term leases, temporary contracts usually last from a few days to several months.

Types of temporary rental contracts

There are different types of temporary rental contracts, which vary based on the duration and purpose of the rental.

Daily or Weekly Rentals: Perfect for vacations or very short-term housing needs.

Monthly Rentals: Ideal for workers on temporary projects or those seeking flexibility.

Seasonal Rentals: Aimed at meeting housing demand during specific seasons, such as summer or winter.

Advantages of temporary rental contracts for businesses and workers

Monthly temporary rentals offer several benefits for both businesses and employees:

Contractual Flexibility: The adjustable duration of the contract allows it to fit perfectly with temporary projects or assignments.

Economic Savings: Compared to options like hotels, temporary rentals can offer significant savings for both businesses and workers.

Customization: The contract terms can be tailored to specific needs, including furniture and services, providing a more personalized experience.

Tax Benefits for Companies: Opportunities for savings on taxes and government charges related to employee housing.

Profitability for Property Owners: Temporary contracts often offer higher rents, benefiting landlords economically.

Legal considerations

Temporary rental contracts are governed by local laws and specific regulations of each region. In Spain, for example, the Urban Lease Law (LAU) sets the guidelines for these contracts, distinguishing between long-term residential leases and non-residential or temporary leases.

The LAU categorizes rental contracts into two main types, catering to various housing and commercial needs:

Residential Leases: Intended to be the tenant's permanent residence, these contracts are designed to provide long-term stability. The law establishes a minimum initial lease period of three years. After this period, if neither party expresses otherwise at least 30 days prior to its conclusion, the contract is automatically extended for another year. This structure seeks to balance tenant security with landlord flexibility, allowing prolonged stays under clear, predictable terms.

Non-Residential Leases: Designed to cover needs unrelated to habitual residential use, such as temporary rentals, offices, commercial spaces, or storage. These contracts are characterized by flexibility regarding lease duration, allowing the parties involved to agree on terms that best fit their specific requirements. This type is ideal for situations that require a limited-time housing solution or space use, offering landlords and tenants the ability to adapt dynamically to changing market needs or specific projects.

Duration, extensions, and contract termination

The duration of these contracts varies, adapting to each case's specific needs, from days to several months, or even up to a year or more in particular situations.
A temporary rental contract can be extended if both parties agree, and any extension must be properly documented.
Tenants can leave the property at the end of the contract or negotiate an early exit under the conditions established in the agreement.

Conclusion: a versatile housing solution

Temporary rental contracts offer a versatile and cost-effective housing solution, ideal for today’s dynamic work and life situations.
With tangible benefits for both tenants and property owners, these contracts represent an attractive alternative to traditional leases, offering flexibility, savings, and customization based on the needs of each situation.

Need temporary housing or an adaptable space for your projects? Make your reservation request today!

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

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

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