In recent months, there has been an increase in questions among property owners about whether they must deposit a security deposit in a seasonal rental. This is understandable. Since August 2024, we have witnessed a flood of regulatory changes at both the national and regional levels. These changes (often uncoordinated) have generated considerable uncertainty and doubts. Many believe that, since these are not habitual residence rentals, no obligation exists. However, the Valencian regional regulations and the Urban Leases Law (LAU) state otherwise. We analyse this in this week’s article.
What does the Urban Leases Act (LAU) say?.
Article 36 of Law 29/1994 on Urban Leases establishes different types of security deposits depending on the use of the property:
.- One month’s rent for habitual residence rentals (Art. 2 LAU).
.- Two months’ rent for non-habitual residence rentals, such as seasonal rentals (Art. 3.2 LAU).
In these cases, delivering the security deposit is mandatory. It needs to be deposited within 30 days of the signing of the contract or the start of the rental period. And it cannot be waived by the parties.
What is understood by a seasonal rental or rental for non-habitual residence use?.
The Urban Leases Act establishes that rentals for non-habitual residence use are those that do not aim to satisfy the tenant’s permanent housing needs. Specifically, “this includes leases of urban properties contracted for a season, whether summer or any other, and those contracted for carrying out industrial, commercial, artisanal, professional, recreational, welfare, cultural or educational activities on the property, regardless of who contracts them.”
This category also includes tourist rentals, which are specifically defined and regulated by Valencian regional law. Decree-Law 9/2024 of August 2 by the Generalitat Valenciana introduced a clear negative criterion: only rentals lasting 10 days or less are considered tourist rentals. Tourist rentals are exempt from presenting and depositing any security deposit. But what about rentals of 11 days or more?
Urban Security Deposit Department of the Generalitat Valenciana.
According to the Territorial Secretary of Valencia (Urban Security Deposits), it is mandatory to deposit the security deposit in a seasonal rental that lasts more than 11 days. This applies even if the periods are short and occasional. And waiving this deposit is not allowed.
.- For rentals longer than 10 days but less than 30, the amount of the security deposit will be the total amount agreed in the contract.
.- For rentals of one month or longer, the security deposit will be equivalent to one month’s rent.
In all cases, the return of the security deposit can only be requested by the landlord.
Conclusion.
Although it may be a headache, if you are a landlord, you are obliged to deposit the security deposit with the GVA. Even for very short seasonal rentals (12 days, 14 days, etc.). Otherwise, the administration could impose sanctions. At White-Baos Lawyers, we are experts in tourist and seasonal rentals and can advise you on this and other related real estate law matters. Do not hesitate to contact us.
The information provided in this article does not constitute legal advice but is intended for general informational purposes only.
Carlos Baos (Lawyer)
White & Baos.
Tel: +34 966 426 185
E-mail: info@white-baos.com
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