What is a Renting Homes Wales Occupation Contract?
Renting Homes Wales Occupation Contracts are a standardised form of tenancy agreement introduced in Wales by the Renting Homes (Wales) Act 2016, which came into effect on 1 December 2022. This legislation simplifies and standardises the way homes are rented in Wales, replacing various types of tenancy agreements with two main types of contracts:
- Secure Contracts – typically used for social housing tenants.
- Standard Contracts – commonly used for private renters.
Key features of Renting Homes Wales Occupation Contracts:
- Written Contracts: All tenants (now called "contract-holders") must be provided with a written occupation contract, ensuring clarity about their rights and responsibilities.
- Simplification: It replaces old forms of tenancy, such as assured shorthold tenancies, with one of the two types of occupation contracts.
- Enhanced Rights: The contracts include important protections, like minimum notice periods for ending a contract and enhanced security for contract-holders.
- Property Condition: The law places a greater emphasis on the landlord's responsibility to maintain the property and ensure it is fit for human habitation.
- Succession Rights: Clear rules are established for who can inherit the occupation contract if the contract-holder passes away.
This system aims to make renting simpler and fairer by offering consistency and clarity for both landlords and tenants.
Many of the terms within the contracts are required by law and landlords must provide an accurate written statement of the occupation contract (including any required clauses) or face penalties. This means it is essential that you use this new type of contract for new tenants from 1 December instead of an AST.
If you already had tenants in place before 1 December, then the contract is a converted contract. You are given until May 30 2023 to issue an updated statement to them, nut should do this as soon as possible if you have missed the deadline to limit penalties.
My tenants are already living in the property. Should I give them an Occupation Contract?
That will depend. Tenancies that existed before 1 December 2022 converted into occupation contracts on that date. You may need to convert these contracts and different rules may apply.
For more information please use the following link https://www.nrla.org.uk/resources/starting-a-tenancy/converting-tenancies-to-occupation-contracts
When does my existing tenancy agreement change to an occupation contract?
The existing tenancy agreement converted on December 1 2022. However, you need to provide a written copy of the converted terms by May 30 2023. Please note that If you plan to serve notice you will need to have provided the written terms to the occupants before you serve it.
Guidance on converting the terms can be found at https://www.nrla.org.uk/resources/starting-a-tenancy/converting-tenancies-to-occupation-contracts
How long can I offer a term of an occupation contract, what is too short or too long?
There is no minimum term on an occupation contract and you can, should you wish, start the contract rolling on periodically.
However, you may not serve a Section 173 notice to end the contract within the first six months of occupation or during a fixed occupation contract. As the Section 173 notice is six months long, this will give the tenants security of tenure for at least 12 months if they don’t breach the contract terms.
Where can I find more information?
For more information please use the following link https://www.nrla.org.uk/resources/wales/standard-occupation-contracts
Where can I find training on this topic?
The NRLA offer a multitude of courses for our members to increase their knowledge and improve their skills as a landlord. You can find training on Renting Homes Wales and other topics. You can attend these courses in a classroom, eClassroom or eLearning depending on your preference.