Lesson 1 – Written Statements and Occupation Contracts

Learning Objectives

By the end of this lesson, learners will be able to:

• Understand the purpose of written statements under Welsh housing law.
• Identify the information that must be included within a written statement.
• Understand the different types of contract terms used in occupation contracts.
• Comply with service requirements for written statements and related documents.
• Implement effective record-keeping procedures.
• Recognise the consequences of failing to comply with legal obligations.

Introduction

The Renting Homes (Wales) Act 2016 introduced significant changes to the way residential rental agreements operate in Wales. One of the most important changes was the requirement for landlords to provide contract-holders with a written statement of their occupation contract.

The written statement forms the foundation of the contractual relationship between the landlord and the contract-holder. It sets out the rights, responsibilities, and obligations of both parties and provides clarity regarding how the occupation contract operates.

Failure to provide a compliant written statement can have serious consequences for landlords. In some cases, non-compliance may affect a landlord’s ability to recover possession of the property and may result in compensation being payable to the contract-holder.

This lesson examines the legal requirements surrounding written statements and occupation contracts and explains how landlords can maintain compliance.

What Is a Written Statement?

A written statement is a document that sets out the terms of an occupation contract.

The written statement replaces the traditional tenancy agreement used before the introduction of the Renting Homes (Wales) Act 2016.

The purpose of the document is to ensure that contract-holders clearly understand:

• Their rights.
• Their responsibilities.
• The landlord’s obligations.
• How the occupation contract operates.

The written statement serves as evidence of the contractual arrangement and may become an important document in the event of disputes or possession proceedings.

Written Statement Requirements

Landlords are legally required to provide a written statement to the contract-holder.

The statement must accurately reflect the occupation contract and include all required terms.

Purpose of the Requirement

The written statement requirement was introduced to:

• Improve transparency.
• Simplify housing law.
• Reduce disputes.
• Ensure contract-holders understand their rights.
• Promote consistency across the Welsh private rented sector.

Information That Must Be Included

The written statement generally includes:

• Names of the parties.
• Property address.
• Rent details.
• Occupation date.
• Contract terms.
• Rights and responsibilities.
• Notice provisions.
• Other prescribed information.

Accuracy Is Essential

The written statement should accurately reflect the agreement between the parties.

Errors can create confusion and may result in legal complications.

Landlords should review documents carefully before they are issued.

Changes to Occupation Contracts

Where occupation contracts are varied, landlords may be required to provide updated documentation reflecting those changes.

Examples include:

• Rent increases.
• Changes to contractual terms.
• Amendments agreed between the parties.

Accurate records of variations should always be maintained.

Understanding Contract Terms

Occupation contracts contain different categories of contractual terms.

Understanding these categories is important because some terms can be modified while others cannot.

Fundamental Terms

Fundamental terms are core provisions established by legislation.

These terms provide important protections for both landlords and contract-holders.

Examples include provisions relating to:

• Occupation rights.
• Possession procedures.
• Landlord obligations.
• Contract-holder protections.

Certain fundamental terms cannot be changed.

Others may only be modified in limited circumstances.

Supplementary Terms

Supplementary terms are standard provisions provided by legislation.

They help govern the day-to-day operation of the occupation contract.

Examples may include provisions relating to:

• Property access.
• Maintenance responsibilities.
• Notification procedures.
• Security obligations.

Some supplementary terms can be varied by agreement.

Additional Terms

Additional terms are provisions agreed between the landlord and the contract-holder.

Examples may include:

• Garden maintenance responsibilities.
• Parking arrangements.
• Pet permissions.
• Property use restrictions.

Additional terms must be fair and consistent with legislation.

Terms that conflict with fundamental legal rights may not be enforceable.

Service Obligations

Providing the written statement is only one part of compliance.

Landlords must also ensure that documents are properly served.

What Is Service?

Service refers to the process of delivering documents to the contract-holder.

The objective is to ensure that the contract-holder receives important information relating to the occupation contract.

Documents Commonly Served

Examples include:

• Written statements.
• Variation notices.
• Rent increase notices.
• Possession notices.
• Compliance information.

Methods of Service

Service may be completed through:

• Personal delivery.
• First-class post.
• Email where permitted.
• Other agreed methods.

The occupation contract may contain provisions relating to acceptable methods of service.

Evidence of Service

Landlords should retain evidence demonstrating that documents were served.

Examples include:

• Certificates of posting.
• Delivery confirmations.
• Signed acknowledgements.
• Email delivery records.

Proof of service may become important if disputes arise later.

Record Keeping

Good record-keeping is one of the most effective ways to maintain compliance.

Accurate records allow landlords to demonstrate that they have fulfilled their legal obligations.

Why Record Keeping Matters

Good records can:

• Support possession claims.
• Resolve disputes.
• Demonstrate compliance.
• Protect landlords from allegations.
• Improve property management.

Documents to Retain

Landlords should keep copies of:

• Written statements.
• Occupation contracts.
• Variation notices.
• Correspondence.
• Rent schedules.
• Inspection reports.
• Compliance certificates.
• Notices served.

Electronic Records

Many landlords now maintain digital records.

Benefits include:

• Easier storage.
• Faster retrieval.
• Improved organisation.
• Reduced paperwork.

However, records should be backed up securely.

Retention Periods

Records should generally be retained for a reasonable period after the occupation contract ends.

This may assist in dealing with:

• Deposit disputes.
• Arrears claims.
• Possession proceedings.
• Legal challenges.

Compliance Failures

Failure to comply with written statement requirements can have significant consequences.

Landlords should treat compliance as a priority rather than an administrative formality.

Common Compliance Failures

Examples include:

• Failing to provide a written statement.
• Providing incomplete information.
• Providing inaccurate information.
• Failing to update documents after variations.
• Poor record-keeping.
• Failing to retain proof of service.

Consequences for Landlords

Compliance failures may result in:

• Delays to possession proceedings.
• Legal disputes.
• Compensation claims.
• Increased legal costs.
• Reputational damage.

Impact on Possession Proceedings

When possession proceedings are commenced, courts may examine whether the landlord has complied with their statutory obligations.

Failure to provide required documentation may affect the landlord’s ability to rely upon certain possession procedures.

Contract-Holder Remedies

Where compliance failures occur, contract-holders may have legal remedies available.

These remedies can include:

• Compensation claims.
• Defences to possession proceedings.
• Complaints to relevant authorities.

Compliance therefore benefits both landlords and contract-holders.

Practical Example

A landlord grants a standard occupation contract but fails to provide the written statement within the required timescale.

Several months later, the landlord wishes to recover possession using a no-fault procedure.

During the possession process, the failure to provide the written statement is identified.

The landlord may face:

• Delays.
• Additional legal costs.
• Potential compensation liability.
• Difficulties obtaining possession.

This example demonstrates why compliance should be addressed from the outset of every occupation contract.

Best Practice for Landlords

Landlords should:

• Use compliant occupation contract templates.
• Issue written statements promptly.
• Review documentation regularly.
• Record all variations.
• Retain proof of service.
• Maintain organised records.
• Conduct periodic compliance reviews.

A proactive approach can prevent many legal problems from arising.

Common Mistakes to Avoid

Landlords should avoid:

• Assuming verbal agreements are sufficient.
• Using outdated documentation.
• Ignoring changes to legislation.
• Failing to record contract variations.
• Losing important records.
• Failing to keep evidence of service.
• Delaying the provision of written statements.

Attention to detail is essential for maintaining compliance.

Lesson Summary

Written statements and occupation contracts form the foundation of residential lettings in Wales. Landlords must provide compliant written statements, understand the different categories of contract terms, fulfil service obligations, and maintain accurate records throughout the tenancy.

Failure to comply with these requirements can result in compensation claims, legal disputes, and difficulties obtaining possession. Effective documentation and record-keeping are therefore essential components of professional property management.

In the next lesson, learners will examine fitness for human habitation requirements and how property condition can affect possession proceedings and landlord compliance obligations.