Letting Contracts

Holiday Contracts

A holiday tenant, renting a property from a company or a person in, say, England, France or Germany will have a contract written in the language of that country, signed before leaving on holiday. This is perfectly acceptable. The contract should make provision for terms and conditions associated with a holiday letting, covering statements on the following:

• Payments: it is usual to request a deposit to secure a booking – usually a percentage paid in advance, with the balance payable at some specified date before arrival.
• Cancellation: people should be encouraged to take out holiday cancellation insurance.
• Policy statements on who may not be welcome, e.g. children, pets, and single-sex groups.
• Bed linen, table linen, towels provision and charging.
• Facilities for children: cots, highchairs, and fireguards.
• Smoking policy.
• Guests’ responsibility for their own belongings and cars.
• Arrival and departure times.
• Breakages and damages policy.

Temporada Contracts

Short-term contracts are called Arrienda de Temporada. The straightforward, standard contract is written in Spanish and normally in the native tongue of the tenant. It is for a period of up to one year although most are for much less than that. Properties let this way are furnished and the contract should include a detailed inventory of contents with a returnable deposit required to cover any damages caused by the temporary tenant.

The contract is for a specific period of time at a stated price. The renewal of the contract is only at the agent or landlord’s discretion. An example of this type of contract is given in Appendix 4 and a standard form is available from some tabacs (state-owned tobacco shops that provide stamps and forms).

Vivienda Contracts

The contract for a long-term rental is called Arrienda de Vivienda. The law provides for long-term rentals to be of up to five years duration thus giving the tenant a degree of security. If the landlord offers a contract of three years duration, which is accepted, and then the tenant wishes to stay on for another two years it is automatically renewed on the same terms. If the tenant leaves after three years as arranged, then the contract is terminated.

Annual rent increases, in line with inflation, take place during the contracted term. A new level of rent is set at the commencement of a new contract. Towards the end of a five-year Vivienda contract the landlord is obliged to notify the tenant officially by a notarised letter. If the landlord does not notify the tenant officially, the contract can be renewed for two years at the same rent.

Which Contract?

It is important to determine at the outset if a holiday letting contract, short-term letting or long-term letting is being asked or offered. Legal advisors in Spain struggle to write individual Vivienda contracts because of their complexity and a need to cover every eventuality. They often advise the issue of successive Temporada contracts for a letting of more than one year, thus bypassing some tenant rights. In this case the lawyer is taking advantage of the tenant, denying him the right to a longer contract, and leaving the way open for rent increases beyond the level of inflation at the end of the year.

Some tenants simply accept this practice, but others get legal advice and go to court. The tenant declares that he signed a one-year Temporada contract, he or she lives and works there, it is home, and asks the court to order the contract to be extended to the full five years. In many cases, the court has ruled in favour of the tenant.

The Law lays down the basic structure of rental contracts but they can vary in detail. It is important to obtain legal advice prior to offering or signing a Temporada or Vivienda contract and to make sure everything is understood. Community charges and local taxes are the responsibility of the owner and an allowance for this may be included in the rent but not added as an extra. No matter the length of time a property is let it is the landlord who is a member of any Comunidad (the owner of a community property with shared common elements).