Welsh Landlords liable for contract changes

The Renting (Wales) Act 2016 will fundamentally alter large parts of the way the private rental sector in Wales is run. Originally it was due to be implemented on the 15^th of July 2022 but this was delayed in May to the 1^st of December 2022 at which point all landlords in Wales will be expected to comply with the new legislation. But what do landlords need to comply with? In this article we will take a look at the requirements of the new legislation including how landlords will now be liable for contract changes.

Transition to Occupation Contracts – Key Changes for Landlords

• Tenancy agreements will be replaced by Occupation contracts which will have 4 main parts:
  • Key matters which include the details of the property, the commencement date, the rent payable, when the rent is paid and the type of contract
  • Fundamental terms which cover the fundamental rights and obligations of both the landlord and the contract holder thing such as how the contract can be ended and the obligations of the landlord to maintain the property.  For the most part these cannot be omitted or changed unless both the landlord and the contract holder agree and only if the omission or alteration is in the best interests of the contract holder.
  • Supplementary terms cover the day-to-day running of the contract
  • Additional terms such as provisions for pets.
• A written statement must be provided within 2 weeks of either the commencement date or any alteration to any of the clauses. If this written statement is not provided in a timely manner, then the landlord can be liable for compensation to the contract holder of up to two month’s rent. It is important to note that the landlord is also liable for omissions or changes made by agents acting on their behalf and also for making sure any occupation contracts always reflect the current legal requirements. If, for example, the Government makes changes to the requirements of the occupation contracts, the landlord is accountable for ensuring any contracts they hold are amended accordingly.
• No fault evictions will, under the new act require a minimum of 6 month’s notice, which is an increase from the current 2 month’s notice and no notice can be given in the first 6 months of the contract
• All properties will have to have the following:
  • A satisfactory Electrical installation condition report (EICR) which needs to be provided within 7 days of occupation or the inspection taking place
  • Mains wired interlinked smoke alarms on every floor of the property
  • Carbon monoxide alarms fitted in every room with an gas, oil or solid fuel burning appliance
  • Gas safety certificate
  • Energy performance certificate

Clearly there will be a transitional period for existing tenancies which are converting to occupation contracts and landlords will be given a maximum of 6 months to issue a compliant written statement.

Enhanced Safety Standards – Upgrades for Rental Properties

For the safety aspects such as the EICR and smoke alarms, for existing tenancies which are being converted to occupation contracts, there will be a 12 month transition period. For carbon monoxide alarms, there will be no grace period and working CO alarms will be required where needed from the 1^st of December. It is important to note that no fault evictions will be prohibited in cases where no written statement has been sent, there aren’t enough CO and smoke alarms and where there is no EICR.

With the new legislation only a few short months away, Landlords will need to take swift action to ensure that they are compliant and they will need to make sure they stay abreast of all legislation changes so that contract changes are made in a timely manner and that a written statement of any changes are provided to the tenant(s) within the stipulated time period so as to avoid financial penalties.

Our experts at Northwood can help landlords ensure that they comply with the new legislation in plenty of time and ensure that they don’t run the risk of fines for non-compliance. Why not pop in to one of our offices and speak to one of our local property experts to see how we can help you comply with the new Renting (Wales) Act 2016.