Seasonal Rental: What It Is and How It Works
Seasonal rental is a specific type of property lease where the home is not intended as a permanent residence for the tenant but instead meets temporary accommodation needs. According to the Urban Leases Law (LAU), this type of contract is used for professional, educational, cultural, or recreational purposes.
More and more property owners in cities like Barcelona, Madrid, Málaga, and Valencia are choosing seasonal rentals to maximize profitability instead of selling their properties or opting for long-term traditional rentals.
This option allows landlords to maintain greater flexibility over their property and adapt to the real estate market demand.
Benefits of Seasonal Rental
One of the biggest advantages of this type of rental agreement is its contractual flexibility, as the LAU allows customized terms without as many restrictions as in traditional long-term rentals.
Additionally, it provides stable rental income for the landlord, avoiding the price volatility typical of vacation rentals. Since it does not require a tourist license, administrative procedures are simpler and more accessible.
Finally, longer lease durations reduce tenant turnover and minimize property wear and tear.
Legal Framework for Seasonal Rentals in Spain
The Urban Leases Law (LAU) regulates seasonal rentals through Article 3, clearly distinguishing them from other types of property rental contracts.
According to the regulations, the rental contract must specify the temporary purpose of the lease, such as work, studies, or medical treatment. Furthermore, the law allows flexible agreements between landlords and tenants, as long as they comply with legal requirements.
The mandatory security deposit is equivalent to two months' rent, and the Civil Code supplements these regulations by outlining the rights and responsibilities of both parties.
Specific Regulations by Autonomous Community
Barcelona
In Catalonia, Decree Law 7/2019 clearly differentiates seasonal rentals from vacation rentals. While property registration is not mandatory, it provides greater legal security for both parties.
To qualify for this type of rental contract, the property must have a valid occupancy certificate.
Madrid
The Law 1/2020 of the Community of Madrid simplifies the management of seasonal rentals, as no tourist license is required. However, it is mandatory to have a Technical Building Inspection (ITE) every ten years.
Additionally, a registered energy performance certificate and civil liability insurance adapted for temporary rentals are required.
Málaga
Decree 28/2016 states that Vacation Rental Homes (VFTs) require a specific license, while seasonal rentals are exempt from this requirement.
To ensure proper property maintenance, it is recommended to keep a housing inspection logbook for recording incidents and periodic checks. Additionally, having an emergency and evacuation plan enhances tenant safety.
Valencia
Law 15/2018 regulates seasonal rentals with fewer restrictions than vacation rentals. To comply with regulations, a second occupancy license is mandatory and must be renewed every ten years.
Additionally, an up-to-date pest control certificate is required to ensure the sanitary conditions of the property, along with civil liability insurance tailored to this type of property lease.
Differences Between Seasonal and Vacation Rentals
While vacation rentals are designed for short-term stays and require a specific license, seasonal rentals cater to justified temporary needs and allow for longer lease agreements without the strict regulations of the tourism sector—making them much more cost-effective than buying a second home.
Strategies to Maximize Seasonal Rental Profitability
To achieve the highest return on investment with seasonal rentals, it is advisable to:
• Set competitive and stable rental prices, avoiding daily rate fluctuations.
• Furnish the property with functional furniture.
• High-speed internet connection and modern appliances make the property more attractive to relocated professionals and students.
• Providing additional services such as regular cleaning and preventive maintenance enhances the tenant experience and increases rental demand.
Professional Management of Seasonal Rentals
To maximize profitability without hassle, hiring a professional property management company is crucial. Experts in seasonal rentals can handle pricing strategies based on market demand, reservation management, and tenant communication.
They also ensure compliance with all current regulations and keep the property in optimal condition.
Calculate Your Property’s Profit Potential
If you are considering renting out your property as a seasonal rental, use our profitability calculator. Enter the address and number of bedrooms to get an instant rental income estimate.
Contact Us
If you need personalized advice from Hoffman Real Estate to manage your seasonal rental property, don’t hesitate to contact us. Our team of real estate experts is ready to help you maximize your rental profitability efficiently and securely.
