In the world of leasing, it is crucial to understand the different types of rental contracts, as they vary considerably depending on the type of property and its intended use. Below, we offer a detailed view of the main types of rental contracts, their regulations, and essential features.
1. Residential Lease
The residential lease refers to the rental of a property intended to meet the tenant’s habitual and permanent need for housing. This type of contract is primarily regulated by the Urban Lease Act (LAU), and if not covered, by the will of the parties and subsidiarily by the Civil Code.
Key Aspects:
- Regulation: LAU, will of the parties, Civil Code.
- Exceptions: Luxury housing (over 300 m² or annual rent > 5.5 times the Minimum Wage).
- Duration: Freely agreed, with mandatory extensions if less than 5 years (7 years if the landlord is a legal entity), unless notice of non-renewal is given.
2. Lease for Non-Residential Use
The lease for non-residential use includes properties such as commercial premises, storage rooms, garages, and similar. This type of contract is not subject to the legal extensions of residential leases and is regulated by the will of the parties, LAU, and subsidiarily by the Civil Code.
Key Aspects:
- Regulation: Will of the parties, LAU, Civil Code.
- Duration: Freely agreed without mandatory extensions.
3. Temporary Residential Lease
The temporary residential lease applies when the property is rented for specific and temporary reasons, such as job relocation or studies. It is regulated by the LAU and by the will of the parties. It is essential that the tenant declares that it will not be their habitual residence.
Key Aspects:
- Regulation: LAU, will of the parties.
- Duration: Agreed between the parties, should not be excessively long to maintain the temporary nature.
4. Room Rental Agreement
The room rental agreement refers to the rental of a room within a dwelling. It is regulated by what is agreed between the parties and, in default, by the rules of the Civil Code.
Key Aspects:
- Regulation: Will of the parties, Civil Code.
- Duration: Freely agreed.
5. Agricultural Lease
The agricultural lease involves the transfer of agricultural, livestock, or forestry use of a property. It is regulated by what is agreed between the parties, Law 26/2005, Law 49/2003, and subsidiarily by the Civil Code.
Key Aspects:
- Regulation: Law 26/2005, Law 49/2003, Civil Code, local customs and practices.
- Exceptions: Seasonal leases, lands prepared by the owner, and certain non-agricultural activities.
- Duration: Minimum of five years; any clause stipulating a shorter duration is null and void.
Each type of rental contract has its own particularities and specific regulations. It is essential to be aware of these details to ensure a fair and legally valid agreement. Proper understanding of these contracts not only facilitates the leasing process but also helps avoid future legal disputes.
Do you have questions about the types of rental contracts? Contact us for expert advice and to ensure everything is in order. We are here to help!