Temporary Rental Versus Long-term Rental Contracts
If you’re out there in Barcelona looking for a property to rent you will have seen all the temporary rentals that are now offered on most flats and houses. Here I explain the difference between a temporary rental and a long-term rental.
A temporary rental contract in Barcelona (alquiler de temporada) has very specific requirements. It must NOT be your permanent residence, so the property is rented for a temporary need, not as your habitual home.
There must be a real justified reason as to why you need a temporary rental, such as: a work assignment or short-term work contract, study, medical treatment or some provable reason for a temporary relocation. This reason must be provable with documents (e.g., job contract, university or other course enrollment).
The reason for the temporary rental will be written into the rental contract, and the duration of the contract will be directly linked to the reason for your stay.
The temporary rental contract will state that the rented property is not your habitual residence and the address of your actual long-term residence will be included in the rental contract.
The duration of temporary rental contracts is flexible, but most range from 32 days to 11 months – but remember, you can only sign a contract with a term that matches the reason for your stay. If you have a six month language course, you can only rent for six months. Some contracts have a minimum term of two or three months. Extensions are allowed, but only if the reason for your temporary stay is extended.
If you have arrived in Barcelona because you have a new permanent work contract you will not be able to rent a temporary rental.
Quick checklist for being able to rent on a temporary basis:
- A real, documented temporary reason
- Defined duration tied to that reason
- Statement that it’s not your main residence and a permanent address elsewhere
There have been various rental law amendments over the last few years, but one that’s particularly causing problems is the ability to qualify for a temporary rental. Now, only people who really are residing temporarily in Catalonia can rent a temporary rental property.
So, if you have a permanent work contract, you can’t rent a temporary flat – but as there are virtually no long-term rentals in Barcelona anymore this is really creating a problem for tenants. People often used to rent a property with a temporary contract while they got to know Barcelona, discovered where in the city they wanted to live, and after 6-11 months they were ready to search for a long-term rental. This is no longer legally possible.
Temporary versus the traditional long-term rental
Temporary rentals have been around for many years, but they have exploded recently mostly due to the tightening of rental laws for the traditional long-term rental contract, and in particular for the change of law in 2023 which requires the property owner to pay the estate agency fee (honorarios).
The different types of rental contracts
Holiday rentals are rentals for any period under 30 days – and they require a holiday rental licence from the city council.
Temporary rentals can vary but are usually from 32 days to 11 months.
Long-term rentals have a minimum required term for the tenant of six months, and owners are allowed to apply a penalty if the tenant leaves at any time up to 12 months. The long-term rental contract is valid for five years, and if the owner of the property is a company it’s valid for seven years. By law the owner should pay the estate agency fee, which is usually 10% of the annual rent plus VAT at 21%.
Why are there now more temporary rentals than long-term rentals?
One reason owners are using a temporary rental contract is to avoid paying the agency fee – it’s the new tenant who has to pay this fee for a temporary rental.
After 11 months you usually have to vacate the property. If you can stay put and sign another temporary contract, you may have to pay another agency fee. At the end of a rental contract the rent can increase too. Many say that short-term or temporary rentals offer a loop hole in the law for owners: Short-term leases: a loophole in the housing price cap regulation.
The rent for long-term contracts can only increase once a year and is tied to an index. So a temporary rental contract also allows the owners to keep up with the increasing market prices.
Another reason is that long-term contracts are valid for either five or seven years, so this is a long time for the owner.
The main differences between long-term and temporary
Properties rented under a temporary rental contract are normally fully furnished and equipped, and can include bed linen too. Often internet is connected and included in the rent. The utilities are a set price per month, and calculated on how many people will be living in the property. If you overpay you’re refunded the balance, and if you use more utilities than is covered by the monthly price, you have to pay the difference at the end of the rental.
However, you now see temporary rentals with a maximum term of 11 months that are unfurnished.
Long-term rental properties can be furnished or unfurnished. The furnished properties have the basic furniture included, but not the additional accessories such as lamps, bed linen, rugs, etc. Utility contracts have to be switched to the tenant’s name and paid directly by them to the utility companies.
It’s easier to rent a temporary rental property, as you don’t need an NIE or even a Spanish bank account.
The benefits to you as a tenant are much better with a long-term rental contract. You can stay for up to five years, and sometimes up to seven years. The rent can only go up in line with an index once a year. You do however, need an NIE, a Spanish bank account and proof of income (which is ideally a Spanish work contract).
So, there are pros and cons to both types of rental. If you plan to stay in Barcelona, or anywhere in Spain for that matter, for more than one year, it’s best to try to find a long-term rental. However, in Barcelona, that is becoming increasingly difficult.
