Standard Occupation Contract Wales - Complete Landlord Guide

Since December 2022, all private sector tenancies in Wales are governed by the Renting Homes (Wales) Act 2016. This replaced traditional assured shorthold tenancies with Standard Occupation Contracts. Understanding these new contracts is essential for every Welsh landlord.

What is a Standard Occupation Contract?

A Standard Occupation Contract (SOC) is the default contract type for private landlords letting residential property in Wales. It replaces the assured shorthold tenancy (AST) that still applies in England.

The key features of a Standard Occupation Contract include:

• Clear written terms that both parties must follow
• Mandatory "fundamental terms" set by law
• Optional "supplementary terms" that can be modified
• Stronger rights for contract-holders (tenants)
• New requirements for landlords around fitness for human habitation

The Welsh Government provides model contracts that landlords can use, though you can also create your own as long as it includes all mandatory terms.

Types of Occupation Contracts

There are two main types of occupation contract under the Renting Homes Act:

As a private landlord, you'll issue Standard Occupation Contracts. These can be:

• Periodic contracts - rolling on a weekly or monthly basis
• Fixed-term contracts - for a set period (e.g., 6 or 12 months)

Fundamental Terms

Fundamental terms are mandatory provisions set by law that cannot be changed or removed from the contract. They protect both landlords and contract-holders.

Key fundamental terms include:

• The landlord must keep the property fit for human habitation
• The landlord must keep the structure and exterior in repair
• The landlord must keep installations for water, gas, electricity, heating, and sanitation in repair
• The contract-holder must not use the property for illegal purposes
• The contract-holder must not cause nuisance or annoyance
• Anti-social behaviour provisions
• Provisions about joint contract-holders

Supplementary Terms

Supplementary terms are default provisions that apply unless both parties agree to modify or remove them. They cover practical matters of the tenancy.

Common supplementary terms include:

• Requirements about pets (can be modified)
• Provisions about decoration and alterations
• Garden maintenance responsibilities
• Requirements to notify of absences
• Provisions about keys and access

Written Statement Requirements

You must provide a written statement of the occupation contract to the contract-holder within 14 days of them moving in. This is a legal requirement.

The written statement must include:

• Names of the landlord and contract-holder(s)
• The address of the property
• The occupation date
• All fundamental terms
• All supplementary terms (including any modifications)
• Any additional terms agreed between the parties
• Information about the deposit (if taken)
• The amount of rent and when it's due

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Landlord Obligations

The Renting Homes Act places significant obligations on landlords. Key responsibilities include:

Fitness for Human Habitation

You must ensure the property is fit for human habitation at the start of the contract and throughout. This covers 29 matters including:

• Repair and stability of the structure
• Freedom from damp
• Adequate ventilation and natural light
• Water supply and drainage
• Fire safety
• Electrical safety
• Carbon monoxide risks

Repair Obligations

As landlord, you must keep in repair:

• The structure and exterior (including drains, gutters, external pipes)
• Installations for water, gas, electricity, heating, and hot water
• Common parts in multi-let properties

Safety Certifications

Before the contract-holder moves in, you must provide:

• A valid Gas Safety Certificate (if gas appliances present)
• An Electrical Installation Condition Report (EICR)
• An Energy Performance Certificate (EPC)
• Smoke alarms on each storey
• Carbon monoxide alarms where required

Contract-Holder Rights

Contract-holders under the Renting Homes Act have stronger rights than under the previous AST regime. Key rights include:

• Right to a written statement - must be provided within 14 days
• Right to a fit property - home must be fit for human habitation
• Right to repairs - landlord must maintain the property
• Protection from retaliatory eviction - if they report issues
• Minimum notice periods - cannot be evicted without proper notice
• Succession rights - certain people can inherit the contract

Ending an Occupation Contract

There are specific rules about how occupation contracts can be ended:

Landlord Ending the Contract

To end a standard occupation contract, you must:

• Give at least 6 months' notice (for no-fault eviction)
• Cannot serve notice in the first 6 months of the contract
• Use the correct form (Section 173 notice)
• Have provided a written statement of the contract
• Have protected any deposit properly
• Have provided required safety certificates

Contract-Holder Ending the Contract

A contract-holder can end the contract by giving at least 4 weeks' notice (or one rental period, whichever is longer). They don't need to give a reason.

Standard Occupation Contract FAQ