GOVERNMENT APPROVED – MODEL CONTRACT FIXED TERM STANDARD CONTRACT

RENTING HOMES (WALES) ACT 2016

GOVERNMENT APPROVED – MODEL CONTRACT FIXED TERM STANDARD CONTRACT

Landlords will be required to issue a written statement of the occupation contract (tenancy agreement) to the tenant (contract holder) when a new contract is entered into, on or after 15th July 2022.

Any previous assured shorthold tenancy etc; will be converted to a occupation contract on 15th July 2022 and the written statement must be send to the contract holder.

The written statement must contain all the required contractual terms of the contract.

The model contract provided by the government and referred to in the useful links section runs to 40 pages.

Included in the occupation contract must be the following:

  1. key terms
  2. fundament terms
  3. supplementary terms
  4. additional terms.

Key terms – They must be inserted in every contract. These are unique to the individual contract, for example, the address of the rental property.

Fundamental terms  – cover the most important aspects of the contract. They must be inserted in every contract and can only be modified if it is in the interest of the tenant.For instance they must include information on possession proceedings, deposits, the landlord’s obligations to repair the property etc. Landlords are reminded that there has been a reintroduction of the Fitness for Human Habitation test.

Supplementary terms–  must set out terms of the contract that deal with matters such as the requirement to pay rent on time, act in a tenant like manner, not to damage the property, who cares for a garden, notifying the landlord if a home is empty for 28 or more days etc. They can be removed but only if both the landlord and tenant agree to this. The terms can be removed to either benefit the landlord or the tenant.

Additional terms – will refer to those matters specifically agreed between the landlord and the contract holder. These are not automatically inserted into the occupation contract but can be inserted if both the landlord and tenant agree. An example of an additional term is the keeping of pets at the property.

Consultation with tenants

Landlords must consult with the contract holders (tenants) to determine what terms both parties wish to see included in the new contracts.

Do you have a plan to consult with your tenants on this?

MLS

Here at MLS we are regularly instructed by landlords to advise on compliance and possession claims. If you have any questions please contact us on 01244 478 730 and  we will be happy to help.

Useful Links

https://gov.wales/model-written-statement-fixed-term-standard-contracts

This article is for information purposes only and does not constitute legal advice. Please contact us for advice.

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