Form RHW6: Head Landlord’s Decision to Treat Sub-Occupation Contract as a Periodic Standard Contract in Wales
Form RHW6 is one of the statutory forms created under the Renting Homes (Wales) Act 2016. The Act fundamentally changed the way residential tenancies operate in Wales by replacing traditional tenancies and licences with “occupation contracts.”
The purpose of these reforms was to simplify and standardise renting arrangements, making rights and responsibilities clearer for both landlords and contract-holders.
In the context of sub-occupation contracts, Form RHW6 plays a crucial role for head landlords in managing and regularising the tenancy arrangements within their property portfolio.
It allows the head landlord to formally notify a sub-holder that their sub-occupation contract will be treated as a periodic standard contract.
Let us explore what this means in practice, why this form exists, and when landlords in Wales should use it.
What Is a Sub-Occupation Contract?
A sub-occupation contract arises when a tenant (called a contract-holder in Welsh law) lets all or part of their rented home to someone else.
The original agreement between the head landlord and the primary contract-holder remains in place, but there is now an additional contract between the primary contract-holder and the sub-holder.
Under the Renting Homes (Wales) Act 2016, both of these arrangements are recognised and regulated. The sub-holder has their own rights and obligations under their sub-occupation contract. However, complexities can arise if the primary contract ends or if the head landlord wants greater oversight over who is occupying the property.
This is where Form RHW6 becomes essential.
Purpose of Form RHW6
Form RHW6 is the prescribed form used by a head landlord to notify a sub-holder that their sub-occupation contract will be treated as a periodic standard contract directly with the head landlord.
In simple terms, it transforms the sub-occupation relationship into a direct contractual relationship between the head landlord and the sub-holder.
This process has several key purposes:
Continuity of occupation: If the original contract-holder’s occupation contract ends, the sub-holder does not automatically lose their right to live in the property. Instead, the head landlord can choose to recognise them as a direct tenant, ensuring continuity and avoiding the need for eviction proceedings.
Regulatory clarity: By formalising the new arrangement, both the landlord and the sub-holder have a clear, legally recognised periodic standard contract. This reduces ambiguity and potential disputes about rights and responsibilities.
Management of occupancy: It allows landlords to regularise occupancy within their properties, especially in Houses in Multiple Occupation (HMOs) or other shared housing situations, by formalising who is entitled to stay.
What Is a Periodic Standard Contract?
Under the Renting Homes (Wales) Act 2016, there are two main types of standard occupation contracts: fixed term and periodic.
A periodic standard contract is one that runs indefinitely from period to period—usually month to month—until either the landlord or the contract-holder ends it with the appropriate notice.
These contracts are more flexible than fixed-term agreements, making them particularly useful for landlords who want to maintain greater control over occupancy, or who anticipate changes in tenant arrangements.
When a head landlord uses Form RHW6 to convert a sub-occupation contract into a periodic standard contract, they ensure that the sub-holder becomes their direct tenant on these periodic terms.
When Should Welsh Landlords Use Form RHW6?
There are specific scenarios when Form RHW6 should or may be used. It is not something used arbitrarily, but is designed to address a defined legal situation arising from the end of a head occupation contract that included a sub-tenancy.
Key scenarios include:
End of the superior occupation contract: If the primary contract between the head landlord and the original contract-holder ends (for example, through surrender, notice, or termination), the sub-occupation contract does not automatically end. The head landlord can choose to treat the sub-holder as their direct tenant by issuing Form RHW6.
Desire to retain the sub-holder: In some cases, the head landlord may value the sub-holder as a reliable occupant and prefer to keep them rather than seek new tenants. Form RHW6 enables the landlord to formalise that arrangement without requiring the sub-holder to move out.
Compliance with legal obligations: The Renting Homes (Wales) Act 2016 requires landlords to use prescribed forms when performing certain legal acts. Form RHW6 is the only valid way to serve notice of this particular decision.
Landlords should note that if they do not serve Form RHW6, they may need to take possession action to remove the sub-holder if they do not wish to grant them a new tenancy.
Legal Effect of Serving Form RHW6
Once a head landlord serves Form RHW6 on the sub-holder, the sub-occupation contract transforms into a periodic standard contract between the head landlord and the sub-holder.
This means:
The sub-holder becomes the direct contract-holder with the landlord.
The new contract is a periodic standard contract, subject to all relevant terms of the Renting Homes (Wales) Act 2016.
The landlord and the sub-holder both gain clear, statutory rights and obligations.
The sub-holder can only be evicted in accordance with the terms of the new contract and the legal requirements for ending a periodic standard contract.
Importantly, this process avoids the legal uncertainty that could otherwise arise if a head occupation contract ends but a sub-holder remains in occupation.
Practical Considerations for Landlords
Using Form RHW6 is not just a legal technicality—it is also good property management. Landlords should consider the following practical issues before using it:
Suitability of the sub-holder: Landlords should ensure they are comfortable taking on the sub-holder as their direct tenant. They may wish to conduct referencing or affordability checks before serving the notice.
Negotiating new terms: While the periodic standard contract will have standard terms set by law, there may be scope to agree certain additional or supplementary terms with the new contract-holder.
Record-keeping: Landlords should retain copies of the completed Form RHW6 as proof that the notice was properly served and that the new contractual relationship is valid.
Communication: Clear communication with the sub-holder is essential. Explaining the effect of the notice can help avoid misunderstandings or disputes.
Why Is Form RHW6 Important?
Form RHW6 embodies one of the key policy goals of the Renting Homes (Wales) Act 2016: protecting occupants from homelessness when tenancy arrangements change, while also protecting landlords’ ability to manage their properties effectively.
Without a mechanism like Form RHW6, the end of a primary occupation contract could create a legal limbo for sub-holders. They might be considered trespassers or require formal eviction proceedings, even if they were paying rent and behaving responsibly.
By using Form RHW6, landlords can adopt a fairer and more transparent approach, offering security to the sub-holder and ensuring continued rental income without disruption.
How to Complete Form RHW6
Form RHW6 is a prescribed form with mandatory information fields, typically including:
The name and address of the head landlord
The name and address of the sub-holder
Details of the property in question
A clear statement that the head landlord is treating the sub-occupation contract as a periodic standard contract
The date the notice is given
Landlords must ensure all required fields are completed accurately. An incomplete or incorrect form may be invalid, leaving the landlord unable to rely on it to establish the new contractual relationship.
Service of Form RHW6
The Renting Homes (Wales) Act 2016 requires landlords to serve prescribed notices correctly. Form RHW6 should be delivered to the sub-holder in a manner that can be proven if necessary. Acceptable methods typically include:
Personal delivery
Post to the address
Electronic delivery, if agreed with the sub-holder
Landlords should keep records of when and how the notice was served, in case there is ever a dispute about its validity.
Consequences of Not Using Form RHW6
If a head landlord does not serve Form RHW6 when the primary occupation contract ends, they may lose the ability to regularise the sub-holder’s occupancy through a new periodic standard contract. The sub-holder may remain in the property without a formal contract, which can create difficulties in enforcement or rent collection.
In some cases, the landlord might have no option but to seek possession through the courts, which can be time-consuming and costly.
Using Form RHW6 proactively can save significant hassle by providing a clear, lawful, and fair basis for the continued occupation of the property.
FAQ
What is the purpose of Form RHW6 in Wales?
Form RHW6 enables a head landlord to formally notify a sub-holder that their sub-occupation contract will now be treated as a periodic standard contract directly between them. It clarifies legal rights and responsibilities after the original (superior) occupation contract ends.
When should a Welsh landlord use Form RHW6?
A landlord should use Form RHW6 when the head occupation contract is ending but they want the sub-holder to remain as a direct tenant on a periodic basis.
Is Form RHW6 mandatory?
It is mandatory if the landlord wants to treat the sub-occupation contract as a periodic standard contract. Without it, the landlord cannot unilaterally establish this new contractual relationship.
What happens if Form RHW6 is not served?
The sub-holder may remain in occupation without a valid contract, complicating enforcement of terms or requiring possession proceedings to remove them.
Does the sub-holder have to accept Form RHW6?
No formal acceptance is required. Serving Form RHW6 unilaterally establishes the new periodic standard contract under the law.
What is a periodic standard contract?
It is a rolling tenancy without a fixed end date, typically renewing monthly, until ended by appropriate notice from the landlord or tenant.
How should Form RHW6 be served?
By personal delivery, post, or agreed electronic means. Landlords should keep evidence of service.
Useful External Links
Renting Homes Wales Act 2016 official legislation (legislation.gov.uk)
Welsh Government Renting Homes guidance pages
Shelter Cymru advice for landlords and tenants in Wales
Rent Smart Wales—Landlord Registration and Licensing
These resources offer authoritative guidance for landlords seeking to comply with the Renting Homes (Wales) Act 2016 and ensure they use Form RHW6 correctly when managing sub-occupation contracts.
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