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The Case For Medium Term Rentals For Owners and Tenants

If you have been reading these pages regularly you will know that Valencia Property has your back covered for everything from initial medium term rentals to purchase and beyond and also for any modernisations that you may want to do. We have a number of companies to cover this, Valencia Property sells property in Valencia (And does some longer term rentals), Stepping Stone Rentals is our medium term rental company for stays from three months or more and Valencia Remodels is our renovation company allowing you to buy a place that needs a lot of work and not worry about having to deal with contractors in a different language and remotely.

In this post though we are going to talk about the case for medium term rentals from both the point of view of the owner of a property and the tenant staying at those properties. Why do medium term rentals make sense in the current market more than ever?


Just Before We Start...

Let's get some basics out of the way so we understand what we are talking about here. A medium term rental is what we provide at Stepping Stone Rentals. In our case we start at three month rentals and sometimes go up to six months but the basic is a three month rental. In Spain, owners are allowed to rent their property out on medium term rentals for fixed time periods without a tourist licence (Though we will talk about other licences later in the piece).

In Valencia any period over 11 days can be considered a non tourist rental and in most of Spain over one month but we don't offer those short time periods for two main reasons. Firstly, we still consider them often holiday rentals and that's not what our owners want as the community in which the property is may get awkward about it. Secondly, we can't make it work financially for the company or the owners. The cost of contracts, changeovers, cleaning and insurance means it's not cost effective.

A medium term rental is an agreement between owner and tenant for a fixed period of time for a specific reason. In other words there needs to be a stated reason on the contract as to why the fixed time period is required. Reasons allowed include work placements, studies, health reasons such as needing to be near a hospital for regular treatments or to visit relatives who are in the hospital, the need for housing during modernisations on the family home, extended sabattical or search for a long term property option. However the reason needs to be proven. For example if you say it's for studies then you need to attach the details of the study programme, if it's for extended sabattical or for a property search then the Schengen Visa may suffice, obviously for work a contract is required.


Medium Term Rentals for Owners

The advantages for owners are many and varied.

1. Higher Income Potential Than Long-Term Rentals

  • Medium-term rentals usually command higher monthly rates than long-term leases (12+ months) because they cater to a niche market (expats, digital nomads, seasonal workers, or relocating professionals) and also they include utility costs capped at certain levels for the tenant.
  • You can adjust prices seasonally allowing you to give a lower price in off season periods to make sure you still cover costs

2. Lower Vacancy Risk Than Holiday Rentals

  • Unlike short-term holiday rentals, which face seasonal fluctuations (high demand in summer, low in winter), medium-term rentals provide more stable occupancy with fewer gaps.
  • Less dependency on tourism, making it resilient to economic downturns or any travel restrictions or changes in licencsing or whims of the tourist market.

3. Reduced Operational Hassle vs. Short-Term Rentals

  • No need for frequent check-ins/check-outs, cleaning, or key handovers.
  • Fewer guest turnovers mean less wear and tear on the property.
  • Lower management costs (no need for a property manager or Airbnb co-host).

4. Attracts Reliable Tenants

  • Medium-term tenants (e.g., remote workers, students, or corporate relocations) tend to be more responsible than short-term holidaymakers.
  • Less risk of parties or property misuse compared to vacation rentals.

5. Flexibility for Personal Use

  • Unlike long-term rentals (which often require 12-month contracts), medium-term rentals allow owners to block periods for personal use (e.g., summers or holidays). This is the key point for many of our owners at Stepping Stone Rentals as they want to use their properties as well as covering costs or earning some money from it while they are away.

6. Legal & Tax Advantages in Some Cases

  • In most regions, medium-term rentals avoid strict tourist rental regulations (e.g., license requirements in Barcelona or the Balearic Islands).
  • Tax treatment may be simpler than short-term rentals (which sometimes require VAT registration and in the future will definitely require this).

7. Lower Marketing Costs

  • Unlike holiday rentals (which require constant Airbnb/Booking.com listings), medium-term tenants often come from corporate relocation agencies, Facebook groups, or specialized platforms (e.g., Stepping Stone Rentals, HousingAnywhere etc).

When Is a Medium-Term Rental the Best Choice?

✔ If your property is in a big city (Madrid, Barcelona, Valencia) with demand from remote workers or students.
✔ If you want steady income without daily management (unlike holiday rentals).
✔ If long-term rentals feel too restrictive but short-term is too volatile.

Potential Downsides to Consider

  • Still requires furnishing and utilities management (like short-term rentals).
  • May need more flexible contracts than long-term leases.
  • Not as profitable as peak-season holiday rentals in high-demand areas (e.g., coastal resorts in summer) and not as guaranteed as a long term rental with a good client.

Conclusion

medium-term rental in Spain offers a balanced approach: higher income than long-term rentals, fewer vacancies than holiday rentals, and less operational hassle. It’s ideal for owners who want steady returns without the unpredictability of tourism and also want to use their property.


Medium Term Rentals for Property Buyers

Advantages of a Medium-Term Rental vs. Other Options

FactorMedium-Term Rental (2-6mo)Short-Term Rental (Airbnb, etc.)Hotel StayLong-Term Rental (12+mo)
✅ Flexibility✔ Month-to-month or fixed term (ideal for house hunting)❌ Often min. 1-week stays, expensive long-term❌ Daily rates, no home comforts❌ Locked into 12+ months (risky if you buy early)
? Cost Efficiency✔ 30-50% cheaper than short-term rentals❌ High nightly rates (€100+/night adds up)❌ Very expensive for weeks/months✔ Cheap but inflexible
? Live Like a Local✔ Fully furnished, kitchen, laundry (test neighborhoods)✔ But often tourist-focused areas❌ No real home experience✔ But long commitment
? Time to Explore✔ Enough time to research areas, visit properties, negotiate❌ Rushed, stressful❌ Hotels are temporary✔ But may overcommit before buying
? Bureaucracy Help✔ Time to get NIE, open bank account, understand taxes❌ Too short❌ No stability✔ But unnecessary if buying soon
⚖️ Trial Before Buying✔ Test commute, noise, amenities before purchasing❌ Not long enough❌ Impractical✔ But stuck if you dislike it

? Why a Medium-Term Rental is Best for Property Buyers in Valencia

1. Time to Make the Right Purchase Decision

  • Valencia’s property market is competitive, and rushing leads to overpaying or buying in the wrong area. We have seen this so often it's painful. Luckily for our clients we recommend not doing this.
  • 3-6 month rental lets you:
    • Explore neighborhoods (e.g., Ruzafa vs. El Cabanyal vs. Patraix).
    • Attend multiple viewings, see better deals, and avoid scams.
    • Wait for the right property (some listings take months to appear on your radar).

2. Avoid Long-Term Lease Traps

  • If you sign a 12-month rental but find a home in 3 months, you’re stuck paying double (rent + mortgage) or breaking the lease (penalties).
  • Medium-term rentals often allow early exit clauses (e.g., 1-month notice after the initial period is up).

3. Save Money vs. Short-Term Rentals & Hotels

  • Short-term rentals (Airbnb): €2,500-€5,000/month for a decent 1-bed.
  • Hotels: €80-€150+/night = €2,400-€4,500/month (no kitchen/laundry).
  • Medium-term rental: €1,200-€3,600/month (fully furnished, utilities included, essentially your home for the period).

4. Settle In Properly Before Buying

  • Test daily life (noise, public transport, supermarkets).
  • Build local contacts (Valencia Property and our staff, lawyers, expat networks).
  • Handle paperwork (NIE, bank account, residency if needed).

5. Better Landlord Relationships

  • Many landlords prefer 3-6 month tenants over tourists.
  • Easier to negotiate direct leases (no fees for tenants on Stepping Stone Rentals*, plenty of fees on Airbnb).

*149 Euros contract fee apart.


? Best Areas for Medium-Term Rentals While House Hunting

  • City Center (El Carmen, Ruzafa) – Best for walkability, but noisy.
  • Benimaclet – Student/professional area, good value.
  • La Zaidia - Easy walkability, cheaper and very central, great transport options
  • Patraix, Malilla – Up-and-coming, cheaper but still central.
  • Poblados Marítimos (Cabanyal) – Near beach, trendy but pricier.
  • Burjassot, Godella – Quieter, family-friendly suburbs.

? Smart Strategy for Buyers

  1. Rent for 3-6 months in a target neighborhood.
  2. Use the time to:
    • Deepen your relationship with your Valencia Property agent and get to understand the city and the areas better.
    • Attend property viewings without pressure.
    • Learn the market (prices vary greatly by street).
  3. Only buy once you’re 100% sure of the area and price.

? Where to Find Medium-Term Rentals?

  • Stepping Stone Rentals (Simply the Best and a reliable partner).
  • Idealista, Fotocasa (filter for "temporary rent").
  • Facebook Groups (But they tend to be full of scams so be careful in your sorting).

? Bottom Line

medium-term rental is the perfect balance of cost, flexibility, and local immersion for someone buying property in Valencia. It avoids the financial drain of short-term stays and the traps of long-term leases, giving you the time and freedom to make the best investment decision. 


Medium Term Rentals for Digital Nomads

For digital nomads coming to Valencia, a medium-term rental (2-6 months) offers unique advantages over short-term rentals or hotels. The advantages are similar to those above for people looking to buy but there are specific considerations for digital nomads too:

? Key Benefits for Digital Nomads

1. ? Stable & Work-Friendly Environment

  • Reliable Wi-Fi & workspace (many short-term rentals have very spotty internet).
  • No frequent moves (hotels/Airbnbs mean repacking every few days).
  • Quieter neighborhoods (avoid tourist-heavy zones like Malvarrosa in summer).

2. ? Cost Savings for Longer Stays

  • 30-50% cheaper than short-term rentals (e.g., €1,500/month vs. €2,500+ for Airbnb).
  • Utilities always included (no surprise bills unless there is excess use of electricity).
  • Kitchen access (saves money vs. eating out daily).

3. ? Local Integration & Networking

  • Time to join coworking spaces (e.g., Wayco, Workstation).
  • Build connections with other nomads/expats (Facebook groups, meetups).
  • Learn the city’s nomad-friendly spots (best cafés, libraries, gyms).

4. ? Comfort & Routine

  • Fully furnished with laundry (no hotel-level inconveniences).
  • Personalize your space (unlike sterile hotels).
  • Better sleep/work balance (separate living/workspace).
  • Option to hire cleaners at times for duration of stay (No rentention of deposit on leaving)

5. ? Easier Bureaucracy Handling

  • Valid rental contract helps with:
    • NIE/residency applications.
    • Bank account setup (some banks require proof of address).
    • Phone/internet contracts.

6. ?️ Test Neighborhoods Before Committing

  • Try areas like Ruzafa (lively), La Zaidia (affordable), or El Cabanyal (beachside) before settling.
  • Avoid getting stuck in a noisy/touristy zone (common with short-term bookings).

? Best for Nomads Who Want:

✔ A home base (not a temporary crash pad).
✔ Financial efficiency (stretch your budget further).
✔ Community & routine (vs. constant travel mode).

? Where to Look?

  • Stepping Stone Rentals (nomad-friendly leases).
  • Facebook Groups (“Digital Nomads Valencia” and more).
  • Local rental agencies (ask for “alquiler temporal”).

Bottom Line: A medium-term rental lets you work, explore, and live like a local—without the hassle or cost of short-term stays. Ideal for nomads planning to stay 2+ months


Medium Term Rentals for People on NLV

For someone moving to Valencia on a non-lucrative visa (NLV), choosing a medium-term rental (3-6 months) over a long-term rental (12+ months) offers several strategic advantages, especially when considering visa requirements and flexibility. Here’s why:

Advantages of a Medium-Term Rental for NLV Applicants

1. ? Visa Application Support

  • Pre-arranged rental contract satisfies the NLV requirement for "proof of accommodation" in Spain.
  • No long-term commitment needed before visa approval (avoid signing a 12-month lease only to get rejected).
  • Easier to modify if consulate requests adjustments (shorter contracts are less rigid).

2. ? Flexibility if Visa is Delayed/Rejected

  • If your NLV is delayed or denied, you’re not stuck in a 12-month lease (break fees can be steep).
  • Medium-term rentals often allow early termination (e.g., 1-month notice after initial contract term).

3. ? Time to Find the Right Long-Term Home

  • Explore neighborhoods (e.g., family-friendly vs. expat hubs) before committing.
  • Avoid rental scams (common in the long-term market; inspect properties in person on the ground here in Valencia).
  • Negotiate better long-term rates after arrival (landlords prefer locals ie, people who are already living here and they can see).

4. ? Financial Safety

  • Lower upfront costs vs. long-term rentals (no 12-month security deposit).
  • No risk of overpaying for a place you haven’t seen yet long term (some NLVs rent remotely and regret it greatly for 12 months).

5. ? Smoother Residency Process

  • Use the rental contract to:
    • Open a Spanish bank account (required for NLV financial proof).
    • Get your padrón (municipal registration) quickly (Requires a six month contract)
    • Secure health insurance (some providers need a local address).

6. ? Trial Run Before Settling

  • Test noise levels, commute times, amenities (critical for retirees).
  • Adjust to Valencia’s lifestyle before locking into a long lease.

? Risks of Long-Term Rentals Pre-NLV Approval

  • Visa rejection = paying rent for nothing (or losing deposits).
  • Visa Delay - You are paying for time you aren't using the property because of bureaucracy hold ups.
  • Remote rentals very very often misrepresented (bad neighborhoods, hidden defects, AI photos).
  • Hard to break leases if you buy property later.

? Smart Strategy for NLV Holders

  1. Secure a 3-6 month rental before applying (use it for visa paperwork) At Stepping Stone Rentals we work with you to supply the required paperwork to the embassy or consulate you are using.
  2. Arrive, explore, and only then decide on a long-term home.
  3. Switch to a cheaper/more permanent rental after initial stay.

? Where to Find Medium-Term Rentals?

  • Idealista/Fotocasa (filter for "temporal" but be careful of scams and doctored images).
  • Stepping Stone Rentals (good for visa-proof contracts).
  • Local agencies (ask for "alquiler para visado").

Bottom Line: A medium-term rental is the safest, most flexible option for NLV applicants—giving you visa paperwork support without the risks of a long-term lease.


Airbnb and Regulations

As an owner licences for Airbnb rentals are much harder to get now and there are no guarantees that current licences will be renewed at the end of their lifetime, especially if the property doesn't satisfy the current licensing requirements which have changed massively. Barcelona has already said it will not be renewing licences and most Spanish cities will probably follow suit.

With the ongoing housing crisis in Spain as a whole the restrictions on short term and holiday rentals are not going to loosen up. They will only get tighter and the option of Medium Term rentals (Alquileres temporales) will become more and more attractive for property owners.

Nevertheless, there are requirements for owners of properties set up for temporary medium term rentals and from July there are requirements to be licensed.


Licensing Requirements

How to Register Your Property for Rentals in Valencia

As an owner you can do this yourself online if you wish to register but bear in mind it's all in Spanish or Valenciano of course and there is a lot to go through. So grab yourself a hot coffee and expect it to go cold while you frustratedly work your way through the process.


Step 1: Access the Online Portal
Head over to the "Ventanilla Única Digital de Arrendamientos" (Digital Rental Registry) – the official online platform where you’ll register your property.

Step 2: Sign Up as a Property Owner
If you don’t already have an account, you’ll need to register as a property owner first.

Step 3: Enter Your Property Details
Fill in your property’s information, including:

  • Cadastral reference number (from your IBI tax bill)
  • Property type (tourist rental, vacation rental, long-term, etc.)
  • Full address

Step 4: Upload Required Documents
You’ll need to submit:

  • Proof of ownership (deed or lease authorization)
  • Documents showing the property meets legal requirements (habitability certificate for example... )
  • Tourism license (if it’s a short-term vacation rental. We are not doing those on Stepping Stone Rentals so no need if you are one of our owners)

Step 5: Review & Submit
Double-check all the info and documents before hitting "Submit" to complete your registration.

Pro Tip: Save a copy of your registration confirmation—you might need it later for tax or legal purposes! 


Our Registration Service

Here at Valencia Property and Stepping Stone rentals we are actively helping our owners through the process and registering but you can do it yourself. You can download a guide in English to registering your property here. The Spanish version is here. Just follow the steps and register. However, if you want us to go through the process for you we can register it for 250 Euros. (Stepping Stone Rental Owners get a 50% discount on those fees). If you register as a Stepping Stones Rental owner after we have done the process then we will discount that 50% from your first rental payment.



News From Valencia and Spain

The Spanish government has brought forward their proposed law on charging 100% tax on purchase of Spanish property by non-resident, non-EU buyers and hope to get it through parliament in June to go into force soon after. But don't panic. As stated in our previous post I don't think it will happen but if it does we can already see some major loopholes and potential illegalities under EU law specifically article 63 of the "Treaty on the Functioning of the European Union" (TFEU)

Article 63 of the Treaty on the Functioning of the European Union (TFEU) prohibits all restrictions on the movement of capital within the EU and between the EU and third countries, within the framework of the provisions set out in that chapter. This essentially means that free movement of capital is a fundamental principle of the EU single market. This law discriminates against third country citizens and their investments so will be challenged at the European Court of Justice even if it happens. Spain doesn't need another big fine from the Commission.

And there is an even bigger loophole which is going to cause a problem and it's not even really a loophole. If you get your residency first then you can buy. This will mean people will come to Spain on the NLV, DNV, Student Visa or any of the many other easily obtainable visas, become residents and then buy, thus avoiding the 100% tax.

The problem this is going to cause is huge if it happens as it will place more pressure on the already overstretched rental market pushing the prices of rentals even higher. If rentals go up then investors looking for returns on investment will buy more property to rent out reducing even more the properties that are available for first time buyers and others to buy. Other unintended consequences will arise for sure. This is not a great idea!! (But I don't think it will get through parliament)

There'll be a full blog, podcast and more about this coming up in the next few weeks once the actual details are released because currently everything is still speculation and undoubtedly there will be some media appearances where I calmly tell everyone "Don't Panic!" but until then... well... don't panic.


Villa Of The Week


Naquera Villa at 900K

We live in strange times. The Doomsday Clock is at 89 seconds to midnight apparently, which sounds generous to be honest. Its hard to know what’s coming next. A pandemic, bond market crisis in the US, war in the middle east, war in Kashmir, country-wide power cuts. And then when you think nothing can surprise you any more, Tottenham win a trophy! That on its own should move us a few seconds closer to midnight.

So if the world is coming to an end, where are you going to enjoy the show from? It may as well have a good view, like this villa on the edge of Naquera town. On a large plot, with commanding views across the Sierra Calderona and the Gulf of Valencia (Not name changed to the Gulf of America 2 yet), it features a tennis court and swimming pool.

The house is 360 m² and was completely renovated just three years ago with high-quality materials. The complete renovation, carried out in 2022, included the installation of modern solar panels, tilt-and-turn PVC windows with solar filtering, oak on the exterior and white on the interior, natural wood floors, Smeg kitchen appliances with high-quality cabinetry and countertops, and bathrooms that also match the previous specifications. Of course, the electrical and plumbing were also completely renovated.

The main floor features an entrance hall, a large living-dining room with an open kitchen, a porch-style terrace, a double bedroom, two bathrooms, and a room currently used as a study with a piano, which could easily be converted into a large bedroom with a dressing room or two double bedrooms.

A beautiful interior staircase leads to the lower floor, which features a library, a bathroom, two bedrooms with en-suite bathrooms, and another porch-style terrace very similar to the one on the upper floor. If another bedroom were needed on this floor, it would be very simple and would also have an en-suite bathroom, taking advantage of the existing bathroom. It also has a garage or storage room of approximately 30 m2 and an auxiliary building of approximately 20 m2 with a fireplace and a barbecue/paella grill.

Can you see yourself sitting by the pool, looking at the mountains, maybe even being able to forget for a moment that the world is just one big dumpster fire….? If you can get in touch fast. I know we always say that, but now that Spain wants to remove the right of foreigners to purchase here, you really are against the clock. (Even if we don't think that will happen)


Property of the Week 259K in Godella

There are two problems with this house- 1) We don't get more of them for sale. 2) It won't hang around long.

A fully modernised townhouse where the transformation is amazing, I know as I saw it three months ago before the modernisation, key ready, fully equipped, well located, manageable, cute, with a lovely nook downstairs for a cooling living room this has just about everything you want in a townhouse for a couple. We have mentioned many times before that townhouses are all or nothing, either fully modernised or you have to do everything including new roof, damp course etc.. This is the former and all the better for it. The hard work has been done.

Ground floor with a living room with incorporated kitchen, bathroom and small rear terrace, upstairs with two bedrooms, bathroom and larger sun terrace and the nook downstairs of a good sized rumble room, TV room, office or whatever you want from it. Obviously double glazed with high quality new windows and doors, excellent lighting, plenty of electric points, air conditioning and filtering downstairs and just a five minute stroll down to the metro station from where you are in Central Valencia in around 15-20 minutes.

You won't find anything even close to this quality at this price in the city and Godella is a cool place to live. The town's name is believed to derive from the Latin "Gaudella", meaning "small joy" or "pleasant place" and this house is a small joy that you could live in now... but you'll have to be quick.

The owner who lives locally wants cash buyers only as they want a relatively quick sale and they need to travel. So if this looks like it could work for you then get in touch and get here quickly. If you want more information send us a message and we can send you the quick video I made today too 


Further Reading...

And other stuff like social media from non binfire websites (Elon's place), podcasts and a listing or two below. Take a look. Just click on the images to see or listen to more.

Petxina Page From Giraffe 360º

You can see the full description and more here


Villa on the Altury estate in #Turis which definitely doesn't leave you wanting more because it has almost 500m2 spread over two floors with huge terraces, easy maintenance gardens and a nearby bar to walk to and stagger back from buff.ly/Wnzzmul

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— Graham Hunt (@grahunt.bsky.social) May 24, 2025 at 1:37 PM



Potential in Pedralba at 220K

Beautifully situated near the village of Pedralba, which is a 40-minute drive from Valencia. The house is situated on a large plot of almost 1300m2 and has a beautiful view.

A large house that requires some love and attention, but the price reflects that. The ground floor has two bedrooms, a large kitchen and a small bathroom/toilet. This part of the house is mainly used for large group meals, as so many Spaniards do with their summer and weekend homes. Look at the photos and you'll see a Putin length table down there (almost as if somebody wanted to avoid Uncle Jimmy and his rather toxic views so could place him at the other end of the table) 

Read More Here


Best Rooftops in #Valencia to Enjoy Spectacular Sunsets buff.ly/WhARgmz

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— Graham Hunt (@grahunt.bsky.social) May 24, 2025 at 10:01 AM



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