The Bank of Spain's 2024 Annual Report highlights the growing share of the vacation rental, typically lasting between 1 and 11 months, which is subject to a more lenient regulatory framework that favors landlords. This explains why this type of contract is gaining ground and why, in practice, it leads to disputes when used improperly.

Vacation Rental Agreement

This article offers a practical discussion of the seasonal contracts, how it fits within the Urban Lease Law, the consequences of an incorrect classification, and the central issue in any lawsuit—which is usually determining whether we are actually dealing with a temporary lease or a disguised lease of a primary residence.

Seasonal Lease Agreements

The seasonal contract is used to meet a housing need occasional, sporadic, or temporary. It is usually based on specific reasons such as vacations, studies, a temporary work transfer, or a temporary stay for personal reasons. The typical duration is agreed upon in months, within the usual range of 1 to 11 months, although the duration alone does not determine the nature of the contract.

The appeal of this arrangement, from the owner’s perspective, lies in the fact that the protective provisions typically applicable to a primary residence do not apply, particularly with regard to duration and extensions. This appeal also explains why the courts scrutinize these contracts particularly closely when they see indications that an attempt has been made to classify what is, in reality, a permanent residence as “seasonal.”.

The Legal Distinction

The Urban Lease Law distinguishes between two main categories: the residential lease and the lease for non-residential use. The distinction is not determined by the title of the contract, but rather by its actual destination, that is, based on the objective purpose of the lease.

The correct classification is crucial because it triggers different legal regimes. If the property is a primary residence, mandatory minimum extension periods apply. If it is a seasonal residence, the terms of the agreement apply; in the absence of such an agreement, Title III of the LAU applies, and, as a fallback, the Civil Code.

Permanent Housing Lease

According to Article 2 of the LAU, a residential lease is one in which primary destination is to meet the need permanent the tenant's residence. When the property is used as the tenant's primary residence, the lease is subject to the protective provisions of Title II of the LAU.

This system is reflected, above all, in the minimum term and statutory extensions. Clauses that attempt to limit that term to the detriment of the tenant are generally ineffective, because the rule on the minimum term is mandatory.

Lease for Non-Residential Use (Vacation Rental)

Seasonal contracts fall under the lease for non-residential use. Article 4 of the LAU provides that these leases are governed by primarily due to the will of the parties.

In this context, the duration of the contract is as agreed, with no mandatory extensions required by law. The key is not to sign “for 11 months,” but rather to ensure that there is a genuine, consistent, and verifiable reason for the contract’s temporary nature.

Consequences of the Rating

The classification of the contract is not a mere formality; it is the crux of the matter. The same property may be subject to very different rules depending on whether it is considered a residential lease or a vacation rental. For this reason, when the dispute goes to court, the debate centers on the true nature of the contract.

If it qualifies as a residential lease

The protective provisions of Title II of the LAU apply. With regard to duration, the system of mandatory extension under Article 9, for a minimum term of five years (or seven if the lessor is a legal entity), in accordance with the terms in effect under the regulations applicable to the contract.

Any provisions that limit this minimum term to the detriment of the tenant are considered null and void or ineffective. In practice, it is not sufficient to simply write “seasonal” or specify 11 months if the property is actually used as a primary residence.

If it qualifies as a seasonal lease

The contract is governed by the parties’ agreement and, in the absence of such an agreement, by Title III of the LAU and, on a supplementary basis, by the Civil Code. The term of the contract is freely agreed upon, with no mandatory statutory extensions.

This model allows for more flexible management of the term, but requires special attention to documentation. A well-drafted seasonal contract is based on a specific, consistent, and verifiable justification, not on a formal label.

Differentiation According to the Courts

The courts are aware that the classification of “seasonal” can be used to circumvent the protective provisions governing the primary residence. For this reason, they reiterate that The name of the contract is not decisive and that what matters most is the actual and objective purpose of the lease.

Case law is clear in stating that what matters is not the agreed-upon term, but rather the reason and the need it is intended to address. A seasonal contract is intended to address “occasional or circumstantial” needs, not a permanent need.

Criteria Considered by the Courts

Need for temporary housing

The seasonal contract is designed to meet a housing need non-permanent, not to serve as a primary residence. When the tenant settles in as if it were their permanent home, the lease no longer qualifies as a seasonal lease.

The absence of another primary residence is a significant indicator. If the tenant does not have another home and organizes his or her daily life from the rented property, it is generally presumed that the lease is for permanent housing, unless there is strong evidence to the contrary.

Specific and Temporary Purpose

The purpose must be specific and temporary: vacation, studies, temporary work, medical treatment, renovations to the primary residence, or other similar reasons. If the actual purpose is to live there on a permanent basis, it will be considered a residential lease, even if the contract states “seasonal.”.

The judge looks for consistency between the stated reason and reality. A plausible and verifiable reason strengthens the temporal aspect; a generic or inconsistent reason weakens it.

Relevant clues

To determine the true nature of a contract, courts typically consider evidence such as:

• The existence of another primary residence for the tenant.
• The specific reason for the fixed-term nature of the contract (education, temporary work, vacation).
• The tenant's place of registration.
• The consumption of supplies, which may indicate occasional or ongoing use.
• The content of the contract and its clauses (for example, if it specifies “primary residence,” that takes precedence over a clause stating “seasonal residence”).

Subsequent Events and Contract Concatenation

Subsequent events also carry weight. A series of short-term contracts without a genuine temporary basis may lead to the conclusion that the actual purpose is permanent, thereby undermining the “seasonal” nature of the employment.

Contract Fragmentation and Room-by-Room Rentals

The lease of a single room that lacks the minimum amenities required to be considered an independent dwelling (a kitchen and bathroom for exclusive use) is generally treated as a lease for a purpose other than residential use, as governed by the Civil Code, with nuances depending on the specific case.

In these cases, the analysis cannot be resolved simply by applying a label. The content of the agreement, the actual use, the structure of the property, and whether there is a genuine temporary purpose are all examined.

Burden of Proof

It corresponds to the landlord prove that the purpose of the contract was truly seasonal and that the intent was not to circumvent the protective provisions governing residential leases. This rule is decisive in court: whoever alleges that the arrangement is temporary must prove it.

As a precaution, it is advisable to draft the lease agreement and its associated documentation with the possibility of litigation in mind. If the temporary nature of the tenancy cannot be substantiated with at least some evidence and proof, the lease agreement is at risk of being reclassified as a primary residence.

Eviction Proceedings for Seasonal Contracts

If the lease is indeed a seasonal lease, the landlord may seek eviction primarily on the grounds of expiration of the agreed-upon term or by nonpayment. The typical dispute is not usually the expiration date itself, but rather the question of whether the lease was actually for a primary residence.

Expiration of the agreed-upon term

Since the mandatory extension does not apply, once the agreed-upon term ends, the tenant must vacate the property. If the tenant fails to do so, the landlord may file an eviction lawsuit on the grounds that the term has expired.

Procedure

The action is being processed through the oral trial pursuant to Article 250 of the Civil Procedure Act, as the dispute falls within the scope of oral proceedings.

Tacit renewal

To prevent the lease from being extended by tacit renewal if the tenant remains in the property with the landlord’s consent, it is advisable to provide verifiable notice of the intention not to renew before the term expires.

Nonpayment of Rent

Failure to pay rent constitutes grounds for termination of the lease, just as in any lease agreement, in accordance with Article 27 of the LAU. The procedure follows the same process as an eviction for nonpayment.

The Controversy in the Legal Proceedings

The central issue in an eviction case based on the expiration of a seasonal lease is typically the dispute over the true nature of the lease. The landlord will argue that the lease is seasonal, that the term has expired, and that eviction is warranted, presenting evidence to substantiate the seasonal nature of the lease.

The tenant will argue that, despite the name of the lease, it is a lease for a permanent residence. If the judge accepts this reclassification, the eviction claim based on the expiration of the lease term will be dismissed, because the tenant would be entitled to the statutory extensions applicable to a primary residence.

The Opinion of Carlos Baño Abogados

Seasonal leases are valid and useful when they serve a legitimate purpose, but they create problems when they are used to artificially replace a residential lease. The difference lies not in the title or the term, but in the objective purpose of the use. In practice, the key is to thoroughly document that purpose and to act consistently both before and after the contract is signed.

Whether you need to review a seasonal lease, prepare an eviction notice due to the expiration of the lease term, or defend yourself against a lawsuit, our team can analyze your case and guide your strategy based on realistic criteria. You can visit us at our office or Find us on Google Maps.