With the call for general elections for next November 29, the Government of Spain has approved two royal decrees with which it seeks to solve some of the complexes problems of the housing rental market in Spain. Although those known as the “Maricarmen decree-laws” did not come into force, Royal Decree-law 29/2026 did, which modified some of the provisions of the Urban Leasing Law.
Law 29/1994, of November 24, on Urban Leases, better known as LAU, establishes a series of obligations and rights for both owners who decide to rent one of their homes and tenants. Despite this, conflicts between both parties tend to be quite frequent, especially when they occur irregularities in the contract or the provisions herein are not complied with. Something that can cause the termination of the agreement and the beginning of an eviction process for the tenant.
However, the signing of temporary rental contracts was also quite common when the purpose of this was for the tenant to reside habitually in the home. A practice that, until now, allowed owners to avoid some of the protections established for regular tenants, but that has come to an end with the new developments provided in Royal Decree-Law 29/2026, of October 6, which came into force on October 8.
The new definition of temporary rental includes the rental of rooms
Specifically, the new article 2.3 of the LAU introduces a modification in the definition of temporary housing rental. At this time, a temporary rental is considered to be that “which falls on a habitable building, including partial rental of a room or stay“, which will be used to cover the tenant’s need for housing when he “is temporarily displaced from his habitual residence, for justified and creditable cause.”
In this sense, the new definition includes an aspect that until now had not been included in the law: the rental of a room or part of the property. Likewise, it indicates that it must be possible to prove that the stay will be temporary, which must be reflected in the contract as established in article 7.2. “This cause must be real and accreditable, the burden of proof of its existence falling on the lessor“.
If the cause that motivates the temporary displacement of the tenant does not appear in the contract, This will lose its temporary rental character and will be governed under “the same conditions as rental contracts for habitual residence.” A measure that has retroactive effects, so it may also be applied to those contracts signed as temporary rentals, but in which the tenant has become a habitual resident and the cause of his displacement is not stated in the document.
To be considered temporary, it must have a maximum duration of 12 months
Although for a rental contract to be temporary it must not only be based on the agreement of both parties and on the establishment of a period of residence, it must also comply with the minimum periods established by law. The new royal decree also establishes modifications in this sense, specifically in article 9 bis on temporary housing lease terms. This establishes a duration greater than thirty-one days, but not exceeding twelve months.
In the event that the duration of the contract is less than the established minimum and the tenant needs to continue residing in the home, both parties must reach an extension agreement, which may not exceed 12 months in aggregate. On the other hand, if the maximum established period is exceeded and there is no cause of temporality that justifies it, the contract “will be understood to be concluded as a rental contract for a habitual residence, and all the precepts provided for such contracts will apply.”
The same occurs in the event that there have been more than two successive contracts for temporary rental of the same home, whose agreement will be considered habitual, even when it is a room. In this sense, the measures and protections for regular tenants would begin to be applied, including the new extended extension and automatic five years for natural persons and seven years to legal entities.
What happens if the contract becomes a regular lease?
In the event that the contract goes from being a temporary rental to a regular rental and the owner wants to terminate it, he must notify the tenant at least six months in advance and he will be entitled to receive compensation equivalent to twelve monthly payments calculated according to the highest rental price established by the state system for the type of housing or one monthly payment per year of residence. The law requires you to pay the highest equivalent of said amounts.
Those temporary rental contracts that are still in force will retain the “different use” regime and will continue to be governed “by what is established in the legal regime that was applicable to them until the end of the duration period agreed in the contract itself.” When they reach the contract end date, they will be terminated without the possibility of extension. Therefore, if you want to renew the agreement, you must be governed by the provisions of the law.