Occupation Contracts in Wales: A Landlord's Guide for Houses, Flats and Rooms
Occupation contracts in Wales: periodic vs fixed-term, the written statement, model contracts, and house, flat and room differences.
By Jonathan Chan, Director, Morgan Jones Estates & Lettings · Last updated: 10 October 2026
In short: an occupation contract is the legal agreement for renting a home in Wales. It replaced the tenancy agreement on 1 December 2022. A private landlord almost always uses a standard contract, either periodic (rolling) or fixed-term, and the same contract types apply whether you let a house, a flat or a room in a shared house. You must give the contract-holder a free written statement of the contract within 14 days of the occupation date. The safest starting point is the Welsh Government model written statement, updated on 29 May 2026.
Morgan Jones prepares and issues the written statement inside the 14-day deadline for every property it fully manages, as part of full management at 10% + VAT with no setup fee and no exit fee. New landlords get their first 3 months of management free. Call 01792 651311.
What is an occupation contract?
An occupation contract is a tenancy or licence that gives an individual the right to live in a dwelling as their home, in return for rent or other payment. The people who rent are called contract-holders, and a contract-holder must be 18 or over. Occupation contracts were created by the Renting Homes (Wales) Act 2016 and replaced assured shorthold tenancies (ASTs) in Wales from 1 December 2022. (Renting Homes (Wales) Act 2016, s.7)
There are two types. A secure contract is always periodic and is the type councils and housing associations use. A standard contract can be periodic or fixed-term. A contract made with a private landlord is a standard contract unless the landlord gives notice that it is to be secure. (ss.8, 11, 17)
Periodic or fixed-term: which standard contract?
| Periodic standard contract | Fixed-term standard contract | |
|---|---|---|
| How long it runs | Rolls on from one rental period to the next, with no end date | Runs for a set term, for example 6 or 12 months |
| Contract-holder leaving | At least four weeks' notice | Normally only at the end of the term, unless the contract has a contract-holder's break clause |
| Landlord ending it without a reason | Section 173 notice: at least six months' notice, not in the first six months | A landlord's break clause is only allowed in a contract of two years or more (with limited exceptions). The landlord cannot use it in the first 18 months, and the notice must be at least six months |
| At the end of the fixed term | Not applicable | If the contract-holder stays, a new periodic standard contract starts the day after the term ends |
(Renting Homes (Wales) Act 2016, ss.169, 174, 175, 184, 194, 195, 196; gov.wales Renting Homes FAQs)
Occupation contracts for a house, a flat or a room
The contract types and the written statement rules are the same for every kind of home. What changes is what the landlord's duties reach, and what you need to check before you let.
A house
You use a standard contract. You are responsible for keeping the structure and exterior in repair, including drains, gutters and external pipes, and for the water, gas, electricity, sanitation and heating installations. You need a mains-powered, interlinked smoke alarm on every storey of the house, and a carbon monoxide alarm in every room with a gas, oil or solid fuel burning appliance. (s.92; Renting Homes (Fitness for Human Habitation) (Wales) Regulations 2022, reg 5)
A flat
You use the same standard contract, but your duties reach beyond the front door:
- The fitness for human habitation duty includes the structure and exterior of the building and the common parts, such as shared stairs, halls and entrances. (s.91(2))
- The repair duty covers the structure and exterior of any other part of the building in which you have an estate or interest, and service installations that serve the flat where they are in a part of the building you have an interest in, or you own or control them. (s.92(2))
- The alarm rules apply to the flat itself: a smoke alarm on each storey of the flat and a carbon monoxide alarm in any room with a gas, oil or solid fuel burning appliance, including a gas boiler. (reg 5)
If you own a leasehold flat, read your lease before you let. Check whether you need the freeholder's consent to let, and agree with the freeholder or management company how you will report and chase repairs to the shared parts, because your duty to the contract-holder still applies.
A room in a shared house or HMO
Sharers can each have their own standard contract for their room, or sign one joint contract for the whole house. Every contract-holder needs a written statement. If the house has three or more storeys, five or more occupants and two or more households, it needs a mandatory HMO licence, and some councils run additional licensing for smaller HMOs. See our HMO guide. (Licensing of HMOs (Prescribed Descriptions) (Wales) Order 2006)
A room in your own home (a lodger)
If you live in the home as your only or main home and share living accommodation (such as a kitchen, living room or bathroom) with the person renting, the arrangement is not an occupation contract, unless you give notice before or when it is made that it is to be one. Sharing only a hallway, stairs or storage does not count as shared accommodation. (Renting Homes (Wales) Act 2016, Sch.2 paras 3 and 6)
What goes in the written statement
The written statement is the occupation contract in writing. It has four kinds of term:
- Key matters: the dwelling, the occupation date, the rent and the rental period. For a standard contract it must also say whether it is periodic or fixed-term, the length of any fixed term, and any periods when the contract-holder is not entitled to live there. (ss.26, 27)
- Fundamental terms: set by the Act and built into the contract, for example the landlord's fitness and repair duties, deposit protection, the contract-holder's four weeks' notice, the six-month no-fault notice rules, adding a joint contract-holder, and the June 2026 children and benefits terms. (ss.18 to 22)
- Supplementary terms: set by Welsh Government regulations. They apply automatically, but you and the contract-holder can agree to leave one out or change it, provided the result does not conflict with a fundamental term. (ss.23, 24)
- Additional terms: anything else you agree, for example pets, gardens or parking. An additional term that conflicts with a key matter, a fundamental term or a supplementary term has no effect. (s.28)
The Welsh Government publishes model written statements for periodic and fixed-term standard contracts. The current versions are dated 29 May 2026 and include the terms that came into force on 1 June 2026. If you use an older template, check that it has these terms. (gov.wales model written statements)
Deadlines, and what happens if you miss one
| What | Deadline | If you miss it |
|---|---|---|
| Written statement (no fee) | Within 14 days of the occupation date | A day's rent for every day from the occupation date until you give it, up to two months' rent, then interest. The court can increase this by up to 100% if the failure was intentional. You cannot serve a section 173 notice until you give it, or for six months after a late statement. |
| Electrical condition report copy | Within 14 days of the occupation date | The home is treated as unfit for human habitation until it is given |
| Deposit protected and required information given | Within 30 days of the deposit being paid | On the contract-holder's application, the court must order one to three times the deposit |
(Renting Homes (Wales) Act 2016, ss.31, 35, 45, 87, Sch.5, Sch.9A; Fitness for Human Habitation Regulations 2022, reg 6. For the deposit rules in full, see our deposit protection guide.)
Joint contract-holders
When two or more people sign, each joint contract-holder is fully liable for every obligation under the contract, including the whole rent. A new joint contract-holder can be added to the existing contract with the landlord's consent, without a new contract. On a periodic contract, one joint contract-holder can withdraw by giving the landlord a withdrawal notice; they stop being a party on the date in the notice, and the landlord must warn the remaining contract-holders in writing. (Renting Homes (Wales) Act 2016, ss.48, 49, 130)
Changing or ending the contract
On a periodic standard contract, rent can go up with at least two months' notice, and after the first increase no more than once a year (see our rent increases guide). For how a contract can end, including no-fault notices, rent arrears and abandoned homes, see the Renting Homes (Wales) Act guide. (s.123)
What to do next
Check that every contract-holder has a written statement, that it includes the June 2026 children and benefits terms, and that it was given inside 14 days. If you let a flat, check your lease. For every Welsh compliance topic in one place, see our Landlord's Guide to Renting in Wales.
How Morgan Jones sets up your occupation contract
For every property we fully manage, Morgan Jones:
- chooses the right contract type for the house, flat or room, and issues the written statement inside the 14-day deadline;
- gives the electrical report, deposit required information and other documents the contract-holder must receive, on time;
- updates written statements when the law changes.
We hold the Rent Smart Wales agent licence, and you speak to the people who manage your property, not a call centre. Full management is 10% + VAT of the rent collected, with no setup fee and no exit fee. New landlords get their first 3 months of management free. Call 01792 651311 or send us a message.
Frequently asked questions
Is an occupation contract the same as a tenancy agreement?
Do I need a different occupation contract for a flat?
Can I use a template for an occupation contract?
Who writes the written statement of the occupation contract?
Is there an agency that helps landlords with occupation contracts in Wales?
Disclaimer
This guide is provided for informational purposes only and does not constitute legal advice. Regulations may change. Always verify current requirements with official sources such as Rent Smart Wales or seek professional legal advice for your specific circumstances.
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