Medium-term lease agreements in Spain are part of rental contracts classified as non-residential use, according to Law 29/1994 on Urban Leases (LAU). Specifically, Article 3, Section 2 of the LAU states that these contracts are governed by Title III of the law. This type of lease is used to rent properties for temporary accommodation, making it clear that the property will not serve as the tenant’s habitual or permanent residence. The reasons for such temporary leases can vary, including tourism, work, or academic purposes.

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But what sets a medium-term lease apart from other types of rental agreements? It is essential to specify the temporary nature of the lease and its limited duration, clearly detailing the exact period of occupancy. Additionally, the contract should justify the specific temporary need motivating the rental, such as relocation for work, studies, or vacations. Since it does not constitute habitual residence, this type of lease offers greater flexibility in terms of conditions agreed upon by both parties, but it must always comply with the legal framework established by the LAU and, secondarily, by the Civil Code.

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Identification of the parties

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The contract should include the details of both parties:

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• Owner or Lessor: Full name, ID (DNI or NIE), and permanent address.
• Tenant or Lessee: Full name, ID (DNI, NIE, or passport), and, if applicable, documentation justifying the temporary stay (e.g., work contract or university admission letter).

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Both parties must sign the agreement to ensure its legal validity.

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Property description

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The lease must include:

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• Full address.
• Type of property (apartment, studio, single-family house, etc.).
• Furniture and equipment provided, along with their condition.
• Common areas, if applicable (e.g., terrace, pool, etc.).

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It is recommended to attach an inventory signed by both parties.

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Legal framework and duration

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The contract should specify that it is a non-residential lease governed by Law 29/1994 on Urban Leases. Key elements to establish include:

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• Start and end dates of the lease.
• Lease period (not exceeding 11 months).
• Renewal terms and notice period (usually 15 to 30 days).

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If the lease exceeds 11 months, it could be considered a habitual residence lease, which entails different legal implications.

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Rent and payment terms

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The contract must specify:

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• Monthly rent amount.
• Due date for payments.
• Payment method (bank transfer, direct debit, etc.).
• Responsibility for utilities such as water, electricity, gas, internet, or community fees.

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It is also crucial to include clauses addressing late payments or penalties for non-payment.

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Deposit and additional guarantees

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The law requires a one-month deposit for this type of lease. Additionally, the following can be included:

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• Extra deposits for potential damages.
• Bank guarantees or rent default insurance.

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The contract should specify the conditions and timeline for the return of the deposit.

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Property use rules

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To avoid disputes, the contract should outline:

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• Subletting restrictions.
• Maximum number of occupants allowed.
• Policies regarding pets and smoking inside the property.
• Responsible use of appliances and furniture.

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Conflict resolution

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The agreement should specify:

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• The competent court in case of disputes (usually the court in the property’s locality).
• The possibility of mediation or arbitration if both parties agree.

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Differences from a habitual residence lease

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Although both contracts are governed by the Law on Urban Leases, medium-term leases are classified as non-residential use. This means:

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• Purpose: They are temporary and do not constitute the tenant’s habitual residence.
• Duration: Limited to short periods, generally less than 11 months.
• Terms: Greater flexibility in the terms, unlike habitual residence leases, which favor tenant protections.

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This type of lease provides an agile solution tailored to temporary housing needs while maintaining legal security for both parties. However, understanding the differences with a habitual residence lease is not enough. To ensure a successful agreement, it is essential to be aware of all legal and practical details involved in this type of contract. From accurately describing the property to specifying rules of use and conflict resolution clauses, every aspect should be clearly defined. With proper preparation, both owners and tenants can ensure a clear, secure experience that meets their expectations and needs.

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