Obtaining a higher return is just one of the advantages of temporary rental. Many owners, given the changes that have occurred due to the Housing Law, have decided to bet on temporary rentals in Barcelona and other large cities. We tell you what it consists of, where it is regulated and what advantages and disadvantages it has.
What is considered temporary rental?
The temporary rental is intended for people who need a home for a season because they move to a city for a few months to work or study, among other reasons, and do not need a long-term rental. In these cases, these are rentals subject to the Urban Leasing Law</a > that talks about seasonal rentals in article 3 and establishes the following:
Article 3. Lease for use other than housing.
1.A lease for use other than housing is considered to be a lease that, falling on a building, has as its primary purpose a different destination than that established in the previous article.
2. In particular, this will be considered for leases of urban properties held seasonally, be it summer or any other (…).
Therefore, a temporary rental is considered a lease for a use other than housing and that is entered into for a season. It is important to differentiate the temporary rental from the vacation rental referred to in section e) of article 5 of the LAU to exclude it from its application:
The following are excluded from the scope of application of this law:
(…) or promotion, and carried out for profit, when it is subject to a specific regime, derived from its tourism sector regulations.
Therefore, the temporary rental is used in several cases:
- – People who are carrying out work in their habitual residence and need housing for the duration of the work.
- – People who move to another city for work reasons. They can be paid workers who have to go temporarily to another city to carry out a task or a project, or digital nomads or paid workers who live for a while in another city.
- – People who move as a result of training. It is quite common for university students or people doing other types of training to move to live temporarily in another city and need a home for a while.
How long does a temporary rental agreement last?
In temporary rentals, the duration of the contract is freely established by the parties, since according to what is regulated in article 4.2 of the Urban Leasing Law: leases for use other than housing are governed by by the will of the parties, failing that, by the provisions of Title II of the law and, additionally, by the Civil Code.
Therefore, the landlord and the tenant of a temporary rental will not be subject to the minimum duration established by the Urban Leasing Law for housing leases.
Advantages and disadvantages of temporary rental in Barcelona
If you want to opt for temporary rental in Barcelona you should know the advantages and disadvantages of this type of lease. We tell you below:
Among the advantages we highlight the following:
Greater profitability
The temporary rental in Barcelona provides greater profitability to the landlord since the annual limit of 2% is not applied in the annual review of rents that came into force in 2023 with the General State Budget. With each tenant, the owner of the house can agree on the price that he deems appropriate considering the situation of supply and demand in the seasonal residential market. In addition, temporary rentals usually involve higher rents than usual for long-term rentals.
More flexibility
Due to the fact that the duration of the contract is also freely agreed by the parties and the minimum duration of the rental contract for the use of housing does not apply (5 or 7 years in the case of landlords that are legal persons), the owners they have greater flexibility to dispose of the home when they deem appropriate or need it.
Increase in demand
Currently many peoplethey move to work or study from one city to another, so the demand for temporary rentals is growing in all large cities. According to Yourhomey, temporary rentals increased by nearly 200% in 2022, so it is a booming market with great prospects for the future due to the great mobility of workers and students.
Among the disadvantages are the following:
Constant dedication of the landlord
Temporary rental means a high turnover of tenants and this requires a constant dedication from the landlord to clean the apartment, make repairs and to do all the necessary tasks to find a new tenant (photos, advertising on real estate portals, calls, visits and signing of the rental contract). Therefore, temporary rental in Barcelona or in another city requires more time and more resources on the part of the landlord.
Necessary precautions regarding the content of the temporary rental contract
The temporality of the rental must be justified and regulated in the rental contract, so that the contract must contain a clause that establishes the specific duration of the lease and a section that specifies that the habitual residence of the lessee is in another place, to avoid that it is understood that it is a contract for the use of housing.
Frequently asked questions (and answers) about temporary rentals
If you have decided to rent your home with a temporary rental in Barcelona, various questions may arise. We solve them below:
How long is the contract?
The contract will have the duration freely agreed by the parties since, as we said before, it is a contract for use other than housing.
Can the tenant terminate the contract early?
The tenant may only terminate the contract in advance if this possibility has been expressly agreed in said contract. It can be regulated that, in certain cases, it is possible to terminate the contract with compensation, for example.
Can the landlord terminate the contract?
The landlord must comply with the duration agreed in the contract and only if the tenant breaches the contractual conditions can he opt for the resolution.
Should a bond be provided?
The delivery of the deposit is mandatory with an amount of two months’ rent, according to article 36 of the Urban Leasing Law, which in section one establishes the obligation to provide a cash deposit at the conclusion of the contract in a amount equivalent to two months’ rent in the contract for use other than housing.
Can the landlord request additional guarantees to the deposit?
Yes, the parties can agree to the delivery by the tenant of additional guarantees to the legal guarantee such as a bank guarantee or a guarantee deposit. In any case, in order to avoid delinquent tenants, it is essential to analyze the solvency of the potential tenant before signing the request for payroll, employment contract and income statements, among other documents.
If you need help for a temporary rental in Barcelona contact our team of experts and they will advise you on this type of rental.
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