Tessa’s Ten Top Tips for Welsh Landlords

  1. The law governing rented homes in Wales changed substantially on 1 December 2022, when the Renting Homes (Wales) Act 2016 came into force. If you are unfamiliar with the rules, take appropriate training. Although some legislation applies in both England and Wales, do not assume that English guidance applies to Welsh properties. Wales has its own rules on occupation contracts, repairs and fitness for human habitation.
  2. There is now different terminology – tenants and licensees are both now called ‘contract holders’, tenancies and licenses are now known as ‘Occupation Contracts’ and tenancy or license agreements are now called written statements of occupation contracts.  Also, a ‘converted contract’ is a contract which existed prior to 1 December 2022.
  3. If your occupation contract converted from an existing tenancy or licence on 1 December 2022, you should have provided its written statement by 31 May 2023. If you failed to do this, provide it now. Late provision can result in compensation being payable to the contract-holder and will normally prevent you from serving a section 173 no-fault notice for six months after the statement is provided.
  4. Landlords must give contract-holders a written statement of their occupation contract. For a new contract, this must normally be provided within 14 days of the occupation date. Failure can result in compensation being payable to the contract-holder.
  5. Occupation contracts contain prescribed fundamental and supplementary terms. Some fundamental terms cannot be changed; others can only be changed or omitted by agreement if this benefits the contract-holder. Supplementary terms can generally be changed or omitted by agreement, subject to the legal restrictions. The written statement must clearly identify any agreed changes or omissions.
  6. Landlords are entitled to include additional terms, so long as they do not conflict with the fundamental and supplementary terms and comply with consumer law.  Landlords should NEVER use the model contracts unamended as they omit many clauses essential for landlords – such as detailed provisions about deposit deductions, pets and payment of rent in advance.
  7. Landlords must also provide details of their address on the special Welsh prescribed form RHW2, failing which compensation rules will apply
  8. If a fixed-term agreement is given to contract holders, it is important that you use a form of agreement that includes the ‘potential’ clauses which will apply if the contract becomes periodic.  If this is not done, you may be in difficulties if your contract holders refuse to sign a new fixed term agreement as any changes made to the fundamental and supplementary terms will be lost when the contract becomes periodic.  This could seriously adversely affect your rights as a landlord.
  9. There are now new rules about the circumstances under which landlords, and in particular, individual contract holders, can end the contract.  Note that during periodic contracts, individual contract holders can end their liability under the contract.
  10. There is also a procedure to allow landlords to recover possession if the property has been abandoned by the contract holders, provided the contract includes the correct clause (not included in the model contract), the required enquiries are carried out, and the proper forms are used.

Further Resources for Landlord Law members:

  • All of our Welsh content is listed on the open-access Wales page (although the links will only work if you are logged in as a member.
  • We have a number of Landlord Law Welsh occupation contracts which have been carefully drafted to avoid the problems discussed above.
  • Welsh members confused by the new rules can ask solicitor Tessa Shepperson questions in the members forum area.

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