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20 / 01 / 2022

The temporary rental contract… often mentioned, but rarely understood

It is very common to rent a property… but not all contracts are the same. Some types are widely used and well known, while others are less so: this is the case of temporary rental contracts.
Many clients call us without really knowing what they are, what they entail, and sometimes even wondering why the landlord has opted for this type of contract. With this article, we will try to provide some clarity.
First of all, the very term ‘temporariness’ implies a short period, which allows both the landlord (the owner) and the tenant (the renter) not to be bound for too long. In recent years, however, this type has also had access to tax benefits for the landlord, if – as we will see – certain requirements are met.
This does not mean that there are no guarantees to be given and received; they are simply of a different nature (compared to a long-term contract) and must primarily ensure that the tenant is truly “passing through.”
The first point to make is that this type of contract cannot be renewed, which naturally reduces the number of interested parties right from the start.
The essential requirement is a real and demonstrable temporary reason, supported by a date, such as a fixed-term employment contract with a clear and documented expiry date.
This is why some categories, such as university students and tourists, cannot meet this requirement and therefore cannot use this specific rental formula.
But why do such contracts exist at all?
The answer is simple: for example, the opportunity to have an apartment occupied for a short period so that it generates useful income for its own maintenance while it is otherwise unused. Or in cases where valid reasons exist for both parties (landlord and tenant): a temporary transfer abroad for work, attending a master’s program, or the need to move to another housing solution for a specific and time-limited reason.
However, this is certainly not a contract that can be easily drafted and managed independently, because while it can be convenient on one side, it is also very restrictive on the other in terms of requirements.
This is why Gallery offers the expertise of a professional dedicated specifically to all types of rental contracts (increasingly in demand) and provides its clients with properties that can be managed with temporary contracts.
Glenda Heidebrunn
Communications and Marketing