Benefits and inconveniences of using a seasonal property during COVID-19!

The alert status of COVID 19 has been in force for more than two months, and it is a difficult task for some residents who live in apartments with no gardens, terraces or balconies and in the heart of a city. There is also no option for everyone to travel in second homes, which is why the seasonal rental of properties with a garden or swimming pool can be an option for containment in desperate situations. اخبار

Salvador Salcedo, a partner in Ático Jurídico law firms, says they have clients who require more space, green areas, or swimming pools for seasonal rental houses in order to benefit from these months of uncertainty. In fact, this summer he ensures that these seasonal rentals will be in great demand for June, July and August. People want to avoid tourist areas and crowds. Let's look at everything you need to know about this rental option.

How does a seasonal rental differ from other rental types?

What are the saison's advantages and disadvantages?

Seasonal renting tax

How does a seasonal rental differ from other rental types?

Seasonal rentals address specific occupational, study, holiday needs of the tenant, etc. And the difference is that the property is not your permanent home. This is why the LAU (Urban Lease Act) includes rentals other than housing. The contract shall be governed by the will of the parties involved and, where necessary, by the rental regulations.

Salcedo recommends formalizing a rental season when a contract is signed, and visit the house before that to check that if possible furniture and appliances are in perfect shape. It is recommended that an inventory be included in the contract for such items. The tenant also has to pay the deposit together with the rental payment, which amounts to two monthly payments in order to begin with.

Seasonal rentals also differ from tourist rentals because these are exclusively for a shorter term (days or weeks). It also provides additional hotel services in general, such as cleaning, changing sheets and towels, etc. In addition, holiday rentals do not apply to the LAU but are subject to their own regulations.

What are the saison's advantages and disadvantages?

Salvador Salcedo guarantees that there are landlords that are reluctant to put their house in this type of rent because they consider it to be a risk of rent for one, two, three or six months, given the possible damage to the house that does not compensate the rent received. But the lawyer adds that seasonal rent profitability can be a good incentive.

In Salcedo's opinion, it can be an interesting choice for tenants to get better through containment. It will enable them to change their ways and find a home for a season. Another advantage is that it can adjust its duration to the needs and preferences of the tenant, although the rent is more expensive than traditional rent, than a tourist apartment.

Seasonal renting tax

This type of lease is exempt from paid VAT, meaning that the rent agreed with the landlord is only paid by the tenant. As far as income tax is concerned, the owner is required to pay the revenue received as a return to property capital, and the reduction of 60% in net income cannot be applied, since the tenant's habitual residence is not rented.

Both the Treasury and TEAC have established that the 60 percent reduction in income tax does not apply to seasonal rentals or tourist apartments.