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Welsh Gov’s model Written Statement of Occupation Contract (the new phrase for "tenancy agreement") doesn’t state the period for which rent payments relate to.
If the parties intend for rent payments to be made in advance, which is the case the vast majority of the time (e.g. a payment on 1st April is for the month of April, not March), this should be specified, as under common law if a lease is silent on the matter, the rent is presumed to be payable in arrear (Cole v Sury (1626) Lat 264).
Welsh Gov’s model Written Statement
The initial rent is £______ per week / month /____________________ (delete as applicable)
The first payment is to be made on _______________________________________
And further payments are to be made _____________________________________
Our enhanced Written Statement details exactly when each and every payment is to be made, and the period for which each one relates to, meaning there can be no doubt or dispute.
Welsh Gov’s Written Statement also doesn’t include an interest provision for late payment of rent, which would serve as a deterrent for contract-holders not intending to pay rent on time. Any such provision must comply with Renting Homes (Fees etc) (Wales) Act 2019, which states there can be no interest charged within the first seven days of the payment being due. After that, an annual percentage rate of 3% above the Bank of England base rate can be applied to the amount of rent that remains unpaid at the end of that day.
CPS Homes clients can be assured that we’ve got a ‘late payment’ term included in our Written Statement, which permits the landlord to charge where payments are eight or more days overdue.
We're experts on The Renting Homes (Wales) 2016 Act and are helping prepare landlords for the changes. By instructing us to manage your property, we will...
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.
15 November 2022
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
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