🔄 Renewals & Termination of Letting Agreements in Wales

Under the Renting Homes (Wales) Act 2016, the process of renewing or ending a tenancy—now called an occupation contract—has been simplified and standardised across the rental sector. Whether you're a landlord or a contract-holder (tenant), understanding your rights and responsibilities is key to a smooth transition.

🔁 Renewing an Occupation Contract

Renewals can be handled in several ways:

• Automatic Continuation: If no new contract is signed, the existing agreement continues on a periodic basis (usually monthly).
• New Fixed Term: Landlords and contract-holders may agree to a new fixed-term contract, which must be issued in writing.
• Updated Terms: Any changes to rent, responsibilities, or property conditions should be clearly documented and agreed upon.

💡 Tip for Agents: Ensure renewal terms are communicated early—ideally 2–3 months before the end of the fixed term—to allow time for negotiation and compliance.

❌ Terminating an Occupation Contract

Termination rules vary depending on the type of contract and reason for ending it. Key scenarios include:

1. No-Fault Termination (Landlord’s Notice)

• Minimum 6 months’ notice required.
• Notice cannot be served within the first 6 months of the contract.
• Applies to Standard Occupation Contracts (private sector).

2. Breach of Contract

• If the contract-holder breaches terms (e.g. rent arrears, anti-social behaviour), the landlord may issue a possession notice.
• Notice periods vary depending on the breach and evidence required.

3. Mutual Agreement

• Both parties may agree to end the contract early.
• Best practice: confirm in writing and document any agreed terms (e.g. final inspection, deposit return).

4. Abandonment

• Landlords may reclaim possession if the property is abandoned, but must follow a formal process including a 4-week warning notice.

📋 Legal Requirements

• All notices must be in writing and follow the prescribed format.
• Landlords must respect contract-holder rights, including protection from retaliatory eviction.
• Deposit schemes, final inspections, and rent reconciliation must be handled transparently.

🛎️ Support for Contract-Holders

Letting agents play a vital role in guiding tenants through renewals and terminations. Clear communication, fair treatment, and legal compliance help build trust and avoid disputes.