The Guilds' Occupation Contract Terms

The terms of the occupation contract produced by Tenancy Builder have been summarised below for your convenience. Please be aware this is not a definitive list, and additional terms may exist. Furthermore, the terms below have been taken from the periodic version of the occupation contract. If choosing a fixed term, some terms may vary.

Terms of occupation contract

Contract's date of signing and parties' names: The contract's date and the names of the landlord and contract holders.

Dwelling details: The address of the rented property and the occupation date. If applicable, the fixed term period or period the tenant is not entitled to occupy the property.

Rent and deposit details: The amount of rent, when it's payable, and the payment method. If applicable, the amount of the deposit. The details can vary based on the type of rent (normal in advance, months in advance, student, or custom).

Landlord's Rent Smart Wales registration and licence number: The registration and licence number of the landlord provided by Rent Smart Wales (optional).

Occupation date and periods of contract: The occupation date is the day after the end of the fixed term. The rent and rental periods will be as stated in the contract.

Initial requirements of the contract: The landlord lets the dwelling to the contract-holder under the terms of the occupation contract. If the occupation date is earlier than the first rent payment date, a proportionate amount of rent must be paid.

Payment of rent: The contract-holder must pay rent in advance, on time, and as outlined in the contract. Any payment made by another person will be considered payment on the contract-holder's behalf.

Receipt of rent: The landlord must provide a written receipt for any rent paid within 14 days of request.

Periods when the dwelling is unfit: The contract-holder is not required to pay rent for any period during which the dwelling is unfit for human habitation.

Right of set-off: If the landlord is liable to compensate the contract-holder, this can be offset against the rent.

Deposit details: Deposits must be held in a deposit scheme and dealt with according to the scheme's requirements. The deposit is paid as security and can be used to cover reasonable costs or losses. The tenant cannot use the deposit to pay rent without the landlord's consent.

Prohibited conduct: The contract-holder must not engage in behaviour that could cause nuisance or annoyance to others, use the dwelling for criminal purposes, or encourage others to do so.

Use of the dwelling: The contract-holder cannot carry out any trade or business at the dwelling without the landlord's consent. They must use the dwelling as a private residence, which must be their primary or only home.

Shared usage: The contract-holder can use shared access points, stairways, and communal parts in common with others.

Parking: Vehicles or other items cannot be parked in any forecourt, parking space, or similar area without the landlord's consent. If consent is given, it might be subject to additional payments and terms.

Use of landlord's furniture and appliances: The contract-holder can use the landlord's furniture and appliances as outlined in any inventory. The landlord is not responsible for repairing or replacing any items unless required by law.

Permitted occupants: The contract-holder can allow specific named individuals to live in the dwelling as a home.

Pets: Pets or other animals are not allowed in the dwelling without the landlord's consent.

Right to occupy without interference: The landlord cannot interfere with the contract-holder's right to occupy the dwelling unless they reasonably exercise their rights under the contract.

Landlord's right to enter the dwelling: The landlord can enter the dwelling to inspect its condition, carry out repairs, or deal with emergencies. However, they must give at least 24 hours notice before entering the dwelling unless it's an emergency.

Landlord's right to enter for other purposes: With 24 hours notice, the contract-holder must allow the landlord or their representative to view the property for prospective tenants, buyers, or other reasonable management purposes. The contract-holder may be liable for any costs or losses resulting from a breach of this condition.

Duty to care for the dwelling: The contract-holder is responsible for the dwelling's upkeep but not for fair wear and tear. They must not remove fixtures, alter the dwelling's decorative order, or keep anything that poses a health and safety risk.

Safety and dangerous or flammable goods: Certain items and activities, such as using paraffin heaters or burning solid fuel, are prohibited for safety reasons. The contract-holder is also responsible for maintaining smoke and carbon monoxide alarms, keeping common areas clear, and promptly reporting any issues.

Garden and grounds: If applicable, the contract-holder must maintain the garden and grounds neat and avoid altering its layout or character.

Broken glass: The contract-holder must replace broken glass promptly where they or a visitor causes the breakage.

Rubbish, waste, and vermin: The contract-holder must dispose of rubbish and waste correctly, not cause blockages in drains, and take steps to prevent and manage vermin infestations.

External appearance: The contract-holder must maintain the dwelling's exterior appearance, including not placing any advertising or offensive notices visible outside and keeping windows clean.

Pipes and drains: The contract-holder must not block the drains and pipes and must prevent damage caused by frost to pipes and installations.

Small reasonable jobs: The contract-holder is responsible for minor maintenance tasks, such as replacing lightbulbs and batteries and unblocking sinks or toilets.

Ventilation: The contract-holder must ensure all rooms are adequately ventilated and heated, and extractor fans are used and kept clean.

Cleanliness: The contract-holder must keep the dwelling and any appliances reasonably clean throughout the contract.

Insurance: The contract-holder must refrain from doing anything that could invalidate the dwelling's insurance or increase the premium. The landlord's insurance does not cover the contract-holder's possessions, so they are advised to get their own insurance.

Duty to notify the landlord of defect or disrepair: The contract-holder must inform the landlord of any defects or repairs that are the landlord's responsibility. If the contract-holder is responsible for the damage, they must carry out repairs or replacements within a reasonable period.

Landlord's obligation: The landlord must ensure the dwelling is fit for human habitation on the occupation date and for the duration of the contract. They must also keep the dwelling's exterior, structure, and installations in repair.

Further obligations: The landlord must repair any damage caused by works and repairs done to fulfil the landlord's obligations under sections 91 or 92 of the Act.

Limits on obligations: The landlord is not obligated to keep the dwelling in repair if the contract-holder is entitled to remove something from the dwelling or to rebuild or reinstate a dwelling damaged by fire, storm, flood, etc. Also, these obligations only arise once the landlord knows that works or repairs are necessary.

Contractor charges: If the contract-holder requests a repair or visit, and the problem has been caused by a failure on the contract-holder's part, the contract-holder will be responsible for the costs of the contractor’s visit.

Changes to the dwelling: The contract-holder cannot make any alterations without the landlord's consent.

Security of the dwelling: The contract-holder must notify the landlord if the dwelling will be unoccupied for 28 consecutive days or more, take reasonable steps to ensure the dwelling is secure, and may change any lock on the doors with the landlord's consent. They must also pay for the costs if a key or security device is lost.

Changes to locks: The contract-holder may change any lock on the external or internal doors of the dwelling if it provides no less security than before. If a new key is needed due to this change, the contract-holder must notify the landlord and provide a working copy of the new key.

General security: The contract-holder or other permitted occupiers must not exit the dwelling without a set of keys except in an emergency. The contract-holder is also responsible for any costs incurred due to lost keys or security devices, and they must activate and regularly check any burglar alarms in the dwelling.

No subletting, transferring or mortgaging: Contract-holders cannot create a sub-tenancy, transfer, or mortgage the dwelling without permission or legal order.

No lodgers without consent: Contract-holders cannot allow people to live in the dwelling as lodgers without the landlord's consent.

Adding a joint contract-holder: An additional person can become a joint contract-holder with the landlord's consent.

Rights of remaining joint contract-holders: When a joint contract-holder leaves, the remaining ones inherit all rights and responsibilities under the contract.

Joint and several liabilities: If multiple contract-holders exist, each is liable for the entire amount due under the contract, not just their proportionate share.

Termination of contract: The occupation contract can only be ended according to the terms in the agreement or by law.

Termination by agreement: The contract can be ended if the landlord and contract-holder agree.

Repudiatory breach by landlord: The contract ends if the landlord breaches the contract and the contract-holder gives up possession of the dwelling because of that breach.

Contract ends upon the death of the sole contract-holder: The contract ends a month after the sole contract-holder's death or sooner if the landlord is notified of the death.

Contract-holders’ obligations at the end of the contract: When the contract ends, the contract-holder must remove all their belongings, return the landlord's property to its original position, and return all keys.

Cleanliness at the end of the contract: The contract-holder must leave the dwelling clean and in the same condition as at the contract's start.

Repayment of rent or other consideration: The landlord must repay any pre-paid rent related to a period after the contract ends.

Early termination by contract-holder: The contract-holder can end the contract at any time before the occupation date or before receiving a written statement of the contract.

Termination of the contract with joint contract-holders: The contract can't be ended by one joint contract-holder acting without the consent of the other(s).

Contract-holder’s notice: The contract-holder can end a periodic standard contract by giving the landlord notice.

Contract-holder’s notice: minimum notice period: The notice must be given at least four weeks before the contract ends.

Termination of contract on contract-holder’s notice: The contract ends on the date given in the notice or when the contract-holder gives up possession of the dwelling.

Withdrawal of a joint contract-holder: A joint contract-holder can withdraw from the contract by giving notice to the landlord.

Possession claims: The landlord can only claim possession of the dwelling from the contract-holder in certain circumstances.

Possession notices: The landlord must give the contract-holder a possession notice before claiming possession.

Breach of contract: If the contract-holder breaches the agreement, the landlord can claim possession.

Estate management grounds: The landlord can claim possession on estate management grounds.

Serious rent arrears: The landlord can make a possession claim if the contract-holder is seriously in arrears with rent.

Restrictions on making a possession claim: The landlord must give the contract-holder a possession notice before making a possession claim and cannot claim before a certain period after providing the notice.

Landlord Termination: Termination of periodic contract by the landlord with specified notice

Minimum Notice: Minimum notice period of six months from the day notice is given

Notice Restrictions: Restrictions on issuing new notices within six months of withdrawing a previous one

Possession Claim: A possession claim can be made if notice is given under section 173

Possession Claim Timing: Restrictions on making a possession claim before the specified date or after two months from that date

Contract Termination: The contract ends either on the day possession is given up or on a date determined by the order for possession

Notice Withdrawal: The landlord can withdraw notice within 28 days of notice given, or beyond this if no objection is made

Early Notice Restriction: Notice cannot be given until after the first six months of occupation

Retaliatory Claim Restrictions: Restriction on new notices for six months after a retaliatory possession claim

Statement Requirement: Notice cannot be given if a written statement of contract has not been provided

Late Statement Penalty: Notice cannot be given for six months from when a late written statement is provided

Required Information: Notice cannot be given if the landlord has not provided the necessary information

Energy Certificate: Notice cannot be given if a valid energy performance certificate has not been provided

Deposit Breach: Notice cannot be given if security deposit requirements have been breached

Prohibited Payments: Notice cannot be given if prohibited payments or holding deposits from the Renting Homes (Fees etc.) (Wales) Act 2019 have not been repaid

Alarm Requirements: Notice cannot be given if smoke alarms and carbon monoxide alarms are not installed and working

Electrical Condition Report: Notice cannot be given if an electrical condition report has not been provided

Gas Safety: Notice can only be given if a gas safety report has been provided if certain conditions are met.

Possession Order: The order for possession ends the contract either on the date possession is given up or when the order is executed

Contract Variation: Contract can be varied by sections 123 to 125 of the Act or by an enactment

Fundamental Term Restrictions: Fundamental terms may not be varied except by or as a result of an enactment

Variation Restrictions: Variation of fundamental terms is of no effect unless it improves the contract-holder's position or avoids incompatibility with another fundamental term

Rent Variation: Rent can be varied by the landlord with two months' notice, and subsequent rent changes must be at least a year apart

Consideration Variation: Other consideration can be varied by agreement or by the landlord with two months' notice

Statement Obligation: Landlord must provide a written statement of the contract before the end of 14 days from the occupation date

Variation Statement: If the contract is varied, a written statement of the terms varied, or the contract as varied must be provided within 14 days

Landlord Address: Landlord must provide an address for the contract-holder to send documents to within 14 days of the occupation date and update this address if it changes

Compensation: Compensation is owed for failure to provide an address for the contract-holder to send documents to

Inventory: Landlord may provide an inventory of the property's contents, and the contract-holder may comment on this inventory if one is provided. If comments are received within 14 days, the landlord must amend the inventory or inform the contract-holder that the comments are not agreed upon.

Council Tax: Council tax is either paid by the landlord or the contract-holder, depending on the agreement

Utilities: Gas, electricity, water, TV licence, and telephone/internet costs are paid by the landlord or the contract-holder, with several possible payment and invoicing structures depending on the agreement.

Supplier Changes: Contract-holder can change utility and service suppliers but must inform the landlord and ensure a supplier is in place when leaving the property

Meter Changes: If a utility meter changes to a pre-payment meter, the contract-holder must arrange for a non-pre-payment meter to be installed at the end of the contract

Default Penalties: The contract-holder must reimburse any charges payable by the landlord due to the contract-holder's default.

Late Rent Payment: If rent is not paid within seven days of the due date, the contract-holder must pay daily interest at a rate of 3% above the Bank of England base rate

Compliance Losses: The contract-holder is responsible for costs or losses incurred due to their failure to comply with the contract and must protect the landlord from loss arising from any breach of the contract

Written Communication: Any notice, statement, or other document must be given in writing and can be delivered electronically to specified email addresses

Mail Management: The contract-holder must keep safe any documents addressed to the landlord and pass them on as soon as reasonably possible

Certificates and Reports: The contract-holder must not request, obtain, order, or authorise specific certificates or reports without the landlord's consent.

Additional Terms: Any additional terms are specified in the contract.