Temporary residential tenancy agreement: what the owner should check before signing

What to check before signing a temporary residential tenancy agreement

When you let a property on a temporary basis, it is not enough simply to set a short term and call it that. The Ley de Arrendamientos Urbanos distinguishes between a main residence tenancy and a temporary tenancy, and requires the latter to respond to a **genuine and evidenced** temporary reason for moving. Under article 7.2 of the LAU, if that reason is not expressly stated in the contract, or cannot be clearly substantiated, the tenancy loses its temporary nature and may fall under the main residence regime, with retroactive effect from signature. BOE-A-1994-26003

For the landlord, this point is crucial: it is not a mere formality, but a legal basis for the contract.

The temporary reason must be set out in writing

Article 7.2 of the LAU requires the contract to state the reason justifying the tenant’s temporary move and for that reason to be genuine and capable of being evidenced. This means that, before signing, you should check:

1. That the specific reason is clearly worded.

2. That it is not limited to generic or ambiguous formulas.

3. That there is consistency between the reason and the agreed term.

4. That the contract does not disguise a need for a main residence behind a temporary appearance.

**Practical advice:** keep supporting documentation that helps explain the temporary reason for the tenancy, especially if the property is let to someone relocated for work, studies, treatment, works at their main home or another comparable circumstance.

**Common mistake:** copying a standard contract and leaving only the label “temporary” without explaining why it is temporary. That error can cause serious problems later.

Duration, renewals and limits worth agreeing carefully

The current LAU states that, in a temporary residential tenancy, the duration will be freely agreed by the parties, but must be **longer than thirty-one days** and, as a general rule, **not exceed twelve months** in view of the reason behind it. If, on reaching the end date, the reason for the temporary arrangement still exists, the contract may be extended by express agreement, without generally exceeding twelve months in total, unless the reason continues thereafter. BOE-A-1994-26003

This means the landlord must check three matters:

1. The initial term.

2. Whether renewal is possible or not.

3. What will happen when the reason justifying the stay disappears.

**Good practice:**

- record the start and end date;

- set out in writing the handover and return of keys;

- state whether or not there is an option to renew;

- do not mix clauses typical of short stays with conditions typical of long-term lets without checking their consistency.

Rent, payments and costs: precision is better than improvisation

Rent can be agreed freely, but the contract must make all amounts and items clear. Under the LAU, rent is paid monthly unless otherwise agreed, and payment is made by electronic means; only exceptionally, if one of the parties does not have a bank account or access to electronic payment methods and requests it, payment may be made in cash and at the rented property. The landlord must issue a receipt unless the payment is already evidenced by another means. BOE-A-1994-26003

In addition, article 20 regulates which general costs, services and utilities may be agreed to be borne by the tenant, and makes it clear that estate agency fees and contract formalisation costs may not be passed on to the tenant, either directly or indirectly. BOE-A-1994-26003

**Practical actions for you:**

1. Identify the exact monthly rent.

2. Separate rent, deposit, additional guarantees and costs in the contract.

3. Specify who pays utilities, community charges and itemised services.

4. State how each payment will be evidenced.

The Comunidad de Madrid also reminds tenants and landlords that it is advisable to check the financial and legal situation of the property before buying or letting, and to review the basic documentation for the transaction in order to avoid later disputes. Compraventa de viviendas

How to avoid mistakes when letting a temporary property

If you want to reduce risks, follow this order:

1. Check whether the occupation is truly temporary.

2. Draft the temporary reason in a specific way.

3. Match the duration to the real reason for the contract.

4. Regulate payments, costs and handover of the property in writing.

5. Keep all the documentation relating to the transaction.

**Common mistakes worth avoiding:**

- using a temporary contract for an indefinite occupation;

- failing to describe the reason for the move;

- agreeing costs without specifying them;

- assuming that a short duration automatically makes the contract temporary;

- forgetting that, if the contract does not fit within the LAU, it may be legally reclassified.

If you need to review your case before publishing the listing

The guidance above is general. If you are going to let a property and want to check whether a temporary contract, a main residence tenancy or a different strategy is more suitable, you can request a professional review and prepare the documentation before signing.

You can start with an indicative valuation of your property at /valoracion-vivienda-madrid, or contact UBICASA at /contacto. The online estimate is indicative, includes a range and a PDF report, and can be completed with an optional visit. If you prefer in-person assistance, the office is at Calle Montesa 29, Madrid, Monday to Friday from 10:00 to 15:00 and from 16:00 to 19:00.

This article offers general guidance and does not replace an individual review of your contract, the specific temporary reason or the property documentation.