Standard Occupation Contracts
Tenants and licensees are now called contract-holders under the Renting Homes Wales Act 2016. Contract-holders have occupation contracts (which replace tenancy and licence arrangements).
There are 2 types of occupation contract:
- Secure contract: for use by community landlords
- Standard contract: this is the default contract for the private rented sector (PRS) but can be used by local authorities and Registered Social Landlords in certain circumstances (for example a supported standard contract within supported accommodation)
There are 4 types of terms that can feature in occupation contracts:
- Key matters: the names of the parties and address of the property. These must be inserted in every contract.
- Fundamental Terms: cover the most important aspects of the contract, including the possession procedures and the landlord’s obligations regarding repairs.
- Supplementary Terms: deal with the more practical, day to day matters applying to the occupation contract. For example, the requirement for a contract-holder to notify the landlord if the property is going to be empty for 4 weeks or more.
- Additional Terms: addresses any other specifically agreed matters, for example a term which relates to the keeping of pets. Any additional terms must be fair, as required by the Consumer Rights Act 2015.
You are required to issue a written statement of the occupation contract to all contract-holders (this replaces your current tenancy or licence agreement). The written statement must contain all the terms of the contract.
For new rentals the written statement must be issued within 14 days of occupation under the contract. The written statement can be issued in hardcopy or electronically (if the contract-holder agrees).
Further information can be found on the Welsh Government's Standard occupation contracts: guidance page.
Templates and examples of all contracts can be found on the Welsh Government's Renting homes: model written statements page.