Since coming into full effect in December 2022, the Renting Homes (Wales) Act 2016 has significantly changed the way landlords operate across Wales.
From tenancy structures to safety obligations, every rental property, from a Barry flat to a rural Vale of Glamorgan cottage, must now meet the new legal standards.
For landlords, understanding the Act is essential not just to remain compliant but to protect both property and income. Here’s a straightforward guide to what’s changed, what’s required, and how to stay ahead.
1. Goodbye “Tenancies,” Hello “Occupational Contracts”
The Act replaced all former tenancy and licence agreements with a single, simplified agreement type known as an Occupational Contract.
There are two main kinds:
- Standard Contracts — used for most private rentals
- Secure Contracts — primarily used by community landlords (e.g., councils or housing associations)
For private landlords, this means every new tenancy must now use the Welsh Government’s Model Written Statement, adapted as needed for your property.
If you’re unsure whether your contract template is compliant, REMAX Estate Agents Barry can supply a fully updated version that aligns with the Act.
2. Mandatory Written Statements
Every landlord in Wales must provide tenants with a Written Statement of the contract within 14 days of the tenancy start date.
This document outlines all rights and obligations under the law; failure to issue it correctly can lead to penalties or difficulties in regaining possession.
Existing tenancies that began before December 2022 also needed to be converted, meaning that every landlord should have transitioned to the new format by then.
3. Stronger Safety and Fitness Standards
The Act introduced the “Fitness for Human Habitation” (FFHH) rules, ensuring every rented property meets minimum safety and living standards.
You must confirm that your property:
- Has a valid EICR (Electrical Installation Condition Report)
- Has working smoke alarms on each storey
- Has a carbon monoxide alarm near gas appliances
- Is free from severe damp, structural, or sanitary issues
Landlords who fail to meet these requirements could face rent suspension notices or enforcement from Rent Smart Wales.
4. Simpler Notice Periods — But More Tenant Protection
The Act standardised notice procedures across Wales, striking a balance between the rights of landlords and tenants.
- No-fault evictions (Section 173) now require at least six months’ notice once the initial fixed term has ended.
- Notices cannot be served in the first six months of a tenancy.
- Shorter notice periods still apply in breach situations (such as rent arrears or anti-social behaviour).
While this means landlords must plan further ahead, it also encourages longer, more stable tenancies, reducing void periods and turnover.
5. Joint Contract-Holders and Successions
Tenants are now referred to as “Contract-Holders”, and the Act provides more flexibility for joint occupiers.
- New tenants can be added or removed without ending the contract.
- If a contract holder dies, another household member may have a legal right to succeed to the tenancy.
This change reduces disruption for both landlord and tenants, making the management process smoother, particularly in shared or family lets.
6. Rent Smart Wales Licensing and Ongoing Compliance
All landlords and agents letting property in Wales must be registered with Rent Smart Wales. This involves completing an online registration form and paying a fee. If you manage your own properties, you must also hold a Rent Smart Wales licence, demonstrating that you understand your legal obligations.
If you manage your own properties, you must also hold a Rent Smart Wales licence, demonstrating that you understand your legal obligations.
Our lettings team at REMAX Barry are fully licensed and trained under Rent Smart Wales, meaning we can handle compliance, documentation, and management on your behalf. This can save you time and ensure that your properties are managed in full compliance with the law.
7. Practical Steps to Stay Compliant
To protect your investment and avoid penalties:
- Review all tenancy agreements to ensure they meet the Occupational Contract format.
- Keep EICR, GSR, and alarm certificates up to date.
- Provide tenants with the latest Written Statement within the legal timeframe.
- Maintain records of rent payments, inspections, and communications.
- Register or renew your Rent Smart Wales licence if you manage properties directly.
Even minor oversights can result in fines or limit your ability to serve notice, so it’s crucial to stay proactive. By taking practical steps to remain compliant, you can protect your investment and ensure a smooth tenancy experience for both you and your tenants. Remember, you have the power to navigate these changes successfully.
The Renting Homes (Wales) Act 2016 may seem complex, but its goal is clear: to create a fairer, safer, and more consistent rental market in Wales. For responsible landlords, it provides structure and stability, enabling you to build stronger relationships with tenants and mitigate long-term risk. Embrace these changes as they are designed to benefit both you and your tenants.
For responsible landlords, it provides structure and stability, enabling you to build stronger relationships with tenants and mitigate long-term risk. The Act’s provisions can foster better communication and understanding between landlords and tenants, leading to more harmonious tenancies.
If you’re uncertain about your current agreements or compliance status, remember that REMAX Estate Agents Barry is here to assist you. We can help you audit your paperwork, issue updated contracts, and manage your lettings in accordance with complete Welsh regulations. You’re not alone in this process.
