Standard Occupation Contract Wales: What Landlords Need to Include

Since 1 December 2022, the Standard Occupation Contract (SOC) has been the required tenancy agreement for most private rentals in Wales. If you're letting property in Wales, you need to know what a valid SOC must contain — and how it differs from the Assured Shorthold Tenancy (AST) most English landlords are used to.

This guide walks through the key clauses and legal requirements for a Standard Occupation Contract in Wales.

Why you can't use an AST in Wales

The Renting Homes (Wales) Act 2016 replaced ASTs for Welsh residential lettings. Any new private residential tenancy in Wales must use an occupation contract — for the vast majority of landlords, this means a Standard Occupation Contract. Using an AST-style agreement for a new Welsh letting may leave you with an unenforceable contract and could affect your ability to recover possession.

The three layers of an occupation contract

Before diving into individual clauses, it helps to understand the legal structure of an SOC. The 2016 Act divides the terms into three categories:

Fundamental provisions — set by statute and cannot be changed. These include the core rights of the contract-holder and the landlord's key obligations.
Supplemental provisions — statutory defaults that apply unless you and the contract-holder agree otherwise.
Additional terms — anything extra that both parties agree to include, such as a pet policy or specific maintenance arrangements.

Your written statement must clearly identify which terms fall into which category.

Required clauses in a Standard Occupation Contract

1. Parties

Your SOC must identify:

The landlord's full name and correspondence address
The contract-holder's full name and current address
Your Rent Smart Wales registration number — this is a legal requirement under the Housing (Wales) Act 2014

Note the terminology: under the 2016 Act the person renting from you is called the contract-holder, not the "tenant". Using the correct term throughout your document demonstrates compliance.

2. The dwelling

A full description of the property being let, including the complete address and postcode.

3. Occupation date and fixed term

The start date (the "occupation date") and, if you are granting a fixed-term contract, the end date. Fixed-term SOCs are common — a typical initial term is 6 or 12 months.

4. Rent

The monthly rent amount, the day of the month it is due, and how it should be paid. As with any tenancy, be precise — vague rent terms cause disputes.

5. Security deposit

If you take a security deposit, the SOC must state:

The amount (which must not exceed 1 month's rent — this is a hard statutory cap under section 45 of the 2016 Act)
The name of the authorised protection scheme (TDS, DPS, or MyDeposits)
A statement that the deposit will be protected within 30 days

The 1-month deposit cap is considerably lower than the England cap of 5 weeks' rent. Taking more than 1 month's rent as a deposit is unlawful in Wales.

6. Contract-holder's obligations

The fundamental obligations for a contract-holder include:

Paying rent on time
Taking proper care of the dwelling and its contents
Allowing the landlord access on 24 hours' notice for inspections or repairs
Not subletting or assigning the contract without consent
Not making alterations without consent
Returning the dwelling in the same condition at the end of the contract (fair wear and tear excepted)

7. Landlord's obligations

The 2016 Act places significant obligations on landlords. Key ones to include:

Fitness for Human Habitation (FFHH): Under section 91 of the 2016 Act, you must ensure the dwelling is fit for human habitation throughout the contract. This replaces and extends the old section 11 Landlord and Tenant Act 1985 standard.

Mandatory safety certificates: You must provide a valid:

Gas Safety Certificate (annual)
Electrical Installation Condition Report (EICR) — every 5 years
Energy Performance Certificate (EPC) — minimum band E

Smoke and CO alarms: Required by law — smoke alarm on every floor, CO alarm in rooms with solid fuel appliances.

Written statement: You must provide a written statement of the full contract to the contract-holder within 14 days of the occupation date. This is one of the most important obligations under the 2016 Act.

Quiet enjoyment: The contract-holder's right to live in the dwelling undisturbed.

8. Break clause (optional)

If you want to allow either party to end a fixed-term contract early, include a break clause. Typically exercisable after the first 6 months, on 2 months' written notice. This is optional — if you don't want a break clause, omit it entirely.

9. Ending the occupation contract

In Wales, the equivalent of the English section 21 "no-fault" notice is a section 173 notice under the 2016 Act. Key points:

You cannot serve a section 173 notice in the first 6 months of the occupation contract
You must give at least 6 months' notice
Possession proceedings can only start after the notice period expires

For grounds-based possession, the relevant provisions are under section 186 and Schedule 9 of the 2016 Act (equivalent to section 8 in England).

10. Data protection

A brief clause confirming that you handle the contract-holder's personal data under UK GDPR, with the lawful basis being performance of a contract.

11. Governing law

The occupation contract is governed by the law of Wales — the Renting Homes (Wales) Act 2016.

12. Signatures

Signature blocks for the landlord, the contract-holder, the date, and a witness.

The written statement obligation

This bears repeating because it catches many Welsh landlords out. A written statement is not just having a written contract — it is the formal document that sets out all the terms of the occupation contract in a prescribed format.

You must provide the written statement to the contract-holder within 14 days of the occupation date. If you fail to do this, the contract-holder can apply to the court for a financial remedy. The court can order you to pay up to 2 months' rent.

What about smoke alarms and carbon monoxide detectors?

Under the Renting Homes (Fitness for Human Habitation) (Wales) Regulations 2022, you must ensure there is:

A working smoke alarm on each floor of the dwelling
A working carbon monoxide alarm in every room where there is a gas appliance, solid fuel appliance, or oil appliance

You must test the alarms at the start of each occupation contract and keep a record.

Summary checklist for Welsh landlords

Before your contract-holder moves in, make sure you have:

[ ] Drafted a Standard Occupation Contract (not an AST)
[ ] Included your Rent Smart Wales registration number
[ ] Confirmed the deposit does not exceed 1 month's rent
[ ] Arranged deposit protection within 30 days
[ ] Prepared to deliver the written statement within 14 days of occupation
[ ] Ensured valid Gas Safety Certificate, EICR, and EPC are in place
[ ] Fitted and tested smoke and CO alarms

Getting all of this right from the start will save you time, money, and legal headaches later.

This article is for general information only and does not constitute legal advice. Welsh housing law is complex — consult a qualified solicitor if you have specific questions about your obligations.