Your Renting Homes (Wales) Act jargon-buster & guide to Written Statements
The Renting Homes (Wales) Act – introduced on 1st December 2022 – brought about a great deal of change for both landlords and tenants, not least in terminology.
New terminology
- Tenants became “contract-holders”, who have "written statements” rather than tenancy agreements.
- Private rented sector tenancies, such as Assured Shorthold Tenancies (ASTs), are now “standard occupation contracts”.
- Previously used to regain possession of a property, Section 21 and Section 8 notices no longer exist.
Making things clearer and consistent
The Act is said to simplify how landlords rent properties, with the rights and obligations of landlords and contract-holders clearer. Central to this is the requirement for a landlord to provide a ‘written statement’ of the occupation contract to the contract-holder. The explanatory information that must be contained within the written statement is detailed in The Renting Homes (Explanatory Information for Written Statements of Occupation Contracts) (Wales) Regulations 2022.
The aim of the aforementioned Regulations is to provide model templates that encourage consistency in the way written statements are drafted, therefore complying with the legal requirements of the 2016 Act.
Terms that can (or MUST) feature in the written statement of occupation contract
There are four type of terms that can be included in the written statement of occupation contract:
- Key matters: These are the headline terms of the contract, such as names, the property address, start and end date, and rent amount. These must be inserted into every contract.
- Fundamental terms: These cover the most important aspects of the contract, including possession procedures and the landlord’s obligations regarding repair. Some cannot be changed and must be included as per the wording in the Act. Others can be left out or changed, providing both sides agree in writing, but they cannot weaken the contract-holder's position. See our later paragraph section on fundamental terms.
- Supplementary terms: These deal with the practical, day-to-day items, such as contract-holders needing to notify the landlord if the property is going to be empty for four weeks or more. There are a number of these automatically included in the contract, though they can all be left out or changed, providing both sides agree in writing. They can strengthen or weaken either sides' position.
- Additional terms: These are specifically-agreed matters, such as the terms of keeping a pet, that do not conflict with a key matter, fundamental term or supplementary term. All additional terms must be fair, as per the Consumer Rights Act 2015.
Fundamental terms that must be included in occupation contracts
As stated above, the legislation dictates that some fundamental terms must be included in every contract and cannot be modified in any way. These include anti-social behaviour clauses for the contract-holder, as well as a landlord's requirement to provide valid safety certificates/reports and provide minimum notice periods when wanting to regain possession.
Further reading
Want to know more? Head on over to the Renting Homes (Wales) Act 2016 or Welsh Government’s accompanying guidance.
Let CPS Homes help
Frustrated by the complexities of the Renting Homes (Wales) Act and the industry’s ever-changing laws & regulations? We're specialists in navigating through Welsh landlord legislation and the intricacies that other agents might miss. Our Compliance Team stay ahead of the curve, ensuring our clients always have ironclad occupation contracts and complete legal protection.
By instructing us to manage your property, we will...
- Work with you to put efficient processes in place well in advance of key dates for new legislation and regulations, ensuring you and your properties are compliant, safe and legal.
- Provide you with the most robust Written Statement of Occupation Contract you can find in Wales.
- Save you the cost of a Rent Smart Wales landlord licence and the hassle of ongoing training.
- Maximise your rental income by ensuring the property is always achieving its full potential.
- Provide you with your own representative within our Lettings and Accounts departments.
- Produce free, professional photography as part of our standard marketing package.
- Place you on our VIP Investor list where you'll get priority access to pre-market investment properties before they're listed online.
- Provide you with peace of mind via our Client Money Protection (CMP) policy, professional indemnity insurance, and redress scheme membership.
To discuss CPS Homes taking over management of your property, contact our Senior Property Investment & Market Advisor, Rhys Owen, today via rhys.owen@cpshomes.co.uk or 02920 668585
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
