Letting in Cardiff Under the Renting Homes (Wales) Act: Occupation Contracts Explained

Letting a property in Cardiff means following Welsh housing legislation, including the Renting Homes (Wales) Act 2016. The Act changed how private landlords create agreements, manage repairs and end tenancies. Understanding occupation contracts and the responsibilities they establish helps landlords protect their investment while meeting their legal obligations.
1. Understand What an Occupation Contract Means
The Renting Homes (Wales) Act 2016 came into force on 1 December 2022, replacing most traditional tenancy agreements and licences with occupation contracts. Tenants are now referred to as contract-holders, while landlords must provide a written statement explaining the terms of the arrangement.
Most private landlords use a standard occupation contract. This can be either a fixed-term standard contract, which runs for an agreed period, or a periodic standard contract, which continues on a recurring basis.
The written statement sets out the parties’ responsibilities, rent arrangements, occupation terms and procedures for ending the contract. It includes fundamental and supplementary terms prescribed by the legislation, alongside any additional terms agreed between the parties.
Landlords must provide the written statement within 14 days of the occupation date. If the identity of a contract-holder changes, separate requirements apply to providing an updated statement.
Using an old assured shorthold tenancy template without adapting it to Welsh law can create problems. Landlords should ensure their documentation reflects the correct occupation contract type and current legal requirements.
2. Know Your Responsibilities as a Cardiff Landlord
Occupation contracts establish obligations for both landlords and contract-holders. Landlords must understand their responsibilities before advertising a property or accepting a new occupant.
Rent Smart Wales registration and licensing are important starting points. Landlords who let or manage their own properties in Wales generally need to register with Rent Smart Wales. Those carrying out letting or property management activities must also hold the appropriate licence unless an exemption applies. Landlords using an agent should check that the agent is properly licensed for the services provided.
Landlords must also ensure that rent is collected according to the contract and that any permitted rent changes follow the correct legal procedure. Contract-holders have a right to occupy their home without unlawful interference.
Before a new occupation contract begins, check that the property meets applicable safety and legal standards. Review the gas safety record where relevant, electrical installation documentation, smoke alarms, carbon monoxide alarms and deposit arrangements.
Keep records of registrations, licences, inspections, notices and communications. Accurate documentation makes it easier to demonstrate compliance and respond to disputes.
3. Maintain a Home That Is Fit for Human Habitation
The Act requires landlords to ensure that applicable rented homes are fit for human habitation at the start of the contract and throughout the occupation. This responsibility includes relevant structural and exterior elements, as well as common parts where applicable.
Landlords should not wait for a contract-holder to report a serious problem before reviewing the property’s condition. Regular inspections, prompt repairs and reliable maintenance arrangements can help prevent minor defects from becoming more expensive issues.
Pay particular attention to:
- Damp and mould: Investigate the underlying cause and arrange appropriate remedial work.
- Heating and hot water: Check that systems operate safely and that necessary repairs are completed promptly.
- Electrical safety: Ensure the required electrical safety testing and documentation are in place.
- Smoke and carbon monoxide alarms: Meet the applicable installation and maintenance requirements.
- Structural and exterior defects: Address problems involving roofs, windows, doors, drainage and other relevant building components.
The fitness-for-human-habitation requirements include specified safety matters, and compliance should be assessed against the legislation and current regulations. A property that looks presentable during a viewing may still have defects that need attention.
Maintain written records of inspections, repair requests, contractor visits and completed work. These records help demonstrate that maintenance responsibilities are being managed properly.
4. Follow the Correct Rules for Deposits and Contract Changes
Handling deposits correctly is an essential part of letting in Cardiff. Where a security deposit is taken under an occupation contract, landlords must comply with the applicable deposit protection requirements and provide the required information.
Before accepting a deposit, establish which authorised scheme applies and understand the deadlines for protecting it. Keep evidence of the payment, protection and information supplied to the contract-holder.
Changes to an occupation contract also need careful handling. For example, adding or removing a joint contract-holder, changing agreed terms or responding to a request involving the property may require a formal procedure.
Do not assume that a verbal agreement automatically changes the legal position. Check the contract and relevant legislation before making changes, and provide the required written documentation.
Rent increases must also follow the rules that apply to the particular contract. For periodic standard contracts, landlords generally need to use the prescribed notice procedure and observe the relevant restrictions on how frequently rent can increase.
Where a change is disputed, seek appropriate advice rather than relying on an informal arrangement that may not be legally effective.
5. Understand Possession Rules and Notice Periods
Landlords must follow the statutory process when seeking possession of a property. The correct procedure depends on the type of occupation contract, the reason for seeking possession and whether the relevant legal requirements have been met.
For a periodic standard contract, a landlord generally needs to provide at least six months’ notice when using the no-fault possession route. However, statutory conditions and restrictions apply, so the notice period should never be considered in isolation.
Different rules may apply where a contract-holder has breached the contract, rent remains unpaid or another recognised ground for possession is being used. The relevant notice period and procedure depend on the circumstances.
Landlords should also check whether any restrictions prevent them from serving a particular notice. A notice that fails to meet the statutory requirements may be invalid and delay the possession process.
Never attempt to remove a contract-holder by changing locks, removing belongings or otherwise bypassing the legal procedure. Obtain legal advice where necessary and follow the appropriate court process if possession cannot be recovered lawfully.
6. Review Your Letting Strategy and Local Market
Legal compliance is only one part of successful property management. Cardiff landlords should also understand the rental market, likely maintenance costs and the needs of prospective contract-holders.
Areas such as Cathays, Roath, Canton and Pontcanna attract different types of renters, and the suitability of a property depends on its location, condition, size and transport links. Landlords should assess comparable properties and realistic rental demand before deciding how to position a home.
Consider whether the property needs repairs or improvements before the next contract begins. Clear documentation, reliable maintenance and transparent communication can support a more consistent letting experience.
For landlords reviewing their options, estate agents in Cardiff can provide a starting point for understanding local rental conditions and property management considerations.
Review your procedures periodically, especially when legislation or official guidance changes. A well-managed property portfolio requires both sound commercial decisions and a clear understanding of the legal responsibilities attached to each occupation contract.
Frequently Asked Questions
What is an occupation contract in Wales?
An occupation contract is the legal agreement between a landlord and the person entitled to occupy a rented home. It replaced most traditional tenancy agreements and licences in Wales from 1 December 2022. The contract sets out the parties’ rights and responsibilities, including rent, repairs, occupation terms and the procedures for ending the arrangement.
How long does a Cardiff landlord have to provide the written contract statement?
Landlords generally must provide the written statement of the occupation contract within 14 days of the occupation date. The statement must contain the required terms and information. Additional requirements apply when a contract-holder changes. Landlords should retain evidence of when the statement was provided and ensure the document reflects the correct contractual arrangements.
Do Cardiff landlords need to register with Rent Smart Wales?
Landlords who let properties in Wales generally need to register with Rent Smart Wales unless an exemption applies. Landlords who undertake letting or property management activities must also hold the appropriate licence, subject to the applicable rules. If an agent manages the property, check that the agent is properly licensed for the services being provided.
What does fitness for human habitation mean for landlords?
Landlords must ensure that applicable properties are fit for human habitation when the contract begins and throughout the occupation. This includes complying with relevant safety requirements and addressing problems that affect the property’s condition. Landlords should maintain appropriate inspection, repair and safety records and respond promptly to defects that require attention.
Can a landlord end an occupation contract by giving notice?
Yes, where the statutory requirements for the relevant possession route are satisfied. For periodic standard contracts, the no-fault route generally requires at least six months’ notice, subject to statutory conditions and restrictions. Other possession grounds may have different requirements. Landlords should check the applicable rules and obtain advice before serving notice.
