There are serious consequences if you do not comply fully, as you could be liable to pay up to two months’ rent in compensation plus interest.
You will also have 12 months to comply with new safety requirements. This includes ensuring that the property has a working mains-connected smoke alarm on each floor, carbon monoxide alarms and electrical safety inspections.
Terminology changes
The terminology will also be changing. Under the new rules, tenants will be known as ‘Contract Holders’, and the housing agreement will be referred to as an ‘Occupation Contract’, of which there are two types:
- Standard Contracts: to be issued mainly by Private Landlords. They will replace most existing Tenancy agreements and licences that began after 15 January 1989, Assured Shorthold Tenancies and Assured Agricultural Occupancies; and
- Secure Contracts: issued mainly by Community Landlords, which are predominantly local authorities and housing associations.
It will be a legal requirement to provide an agreement in writing either in the form of or based on these model contracts, as they include what are known as “fundamental terms”. These cover the most important aspects of the contract and can only be changed if the Contract Holder agrees. A notice prior to occupation may also be required in some circumstances. The Model Contracts are available from https://gov.wales/renting-homes-model-written-statements.
Written agreement
For Occupation Contracts that begin on or after 1 December 2022, Contract Holders will need to be provided with a written agreement within 2 weeks of moving into the property.
Most agreements that started after 15 January 1989 will automatically convert into one of the new types of Occupation Contract. Arrangements which are not affected by the changes include agricultural tenancies, business tenancies and pre-1989 residential agreements.
Notice period
The notice period for ending housing agreements is also changing, as of 1 December 2022 you will usually need to give your Contract Holder 6 months’ notice to end their Occupation Contract.
You must continue to be registered with, and in many cases licensed by, Rent Smart Wales.
If you need any help or advice surrounding the upcoming changes, please contact us at CallFirst on 0370 845 8458 to speak to one of our advisers.