Occupation contracts
When do I need to provide a written copy of the contract?
An occupation contract can be initiated verbally but it needs to be followed up by a written statement of the contract.
The written statement needs to be given within 14 days of the occupation date for new contracts from 15th July 2022. For converted contracts written statements need to be issued by 15th January 2023.
With occupation contracts people who rent their homes will now be given a minimum of 12 months protection against eviction if they have not breached the terms of the contract.
What happens to existing tenancies?
On 15th July 2022, all existing contracts will convert to occupation contracts. For example, if an existing tenancy is a fixed term assured shorthold tenancy, it will convert to a fixed term standard occupation contract but if it is a periodic assured shorthold tenancy, it will convert to a periodic standard contract.
Tenants will now be known as a contract-holder but an individual cannot be a contract holder if they are under the age of 18.
For all our properties managed by ourselves we are converting any pre-existing AST's/contracts into the new standard occupation contract for completely free.
If we do not manage your property we are happy to issue a standard occupational contract for a fee of £99 (+VAT)
We also have a checklist to help you convert the contract yourself:
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1.
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Download the new model written statements. For a periodic standard occupation click here and for a fixed-term standard contract click here.
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2.
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Review the model written statements against your current agreements using the conversion guidance which can be found here
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3.
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On the basis of the review, create appropriate written statements to replace your current agreements
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4.
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Issue the written statements to your contract-holders.
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Will I be able to use the relevant Model Written Statement as published on the Welsh Government’s website?
For contracts on or after 15th July 2022, a landlord can use the Model Written Statement that is currently available on the Welsh Government website. However, the Model Written Statement includes supplementary terms.
Landlords should be aware that supplementary terms can be omitted so that it benefits the landlord or the contract holder. However, any changes you make must be agreed with by the contract holder first.
It’s possible for landlords to include additional terms as long as they do not conflict with a supplementary term, key matter, fundamental term and that they are fair under the consumer protection law.
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