Converting a tenancy into an occupation contract

Last updated 7 June 2023 - updated templates for those serving written statements late

Introduction

On December 1 2022, when Renting Homes Wales came into force, all existing assured shorthold tenancies and licences in Wales converted into occupation contracts.

These new occupation contracts operate differently, with a number of significant changes that landlords and tenants need to comply with and be aware of. 

To ensure that everyone is aware of their changing rights and responsibilities, landlords are required to provide updated terms to their tenants no later than May 31 2023. The new contracts will be a blend of clauses from the existing AST and the mandatory terms from the legislation.

Alongside this, landlords need to be aware that some of the Renting Homes Wales legislation operates differently for pre-existing tenancies. For example, notice periods differ depending on when the contract began. Landlords with converted contracts are also given additional time to comply with some of the regulations around providing information and fitness for human habitation.

This page provides guidance on converting an existing tenancy agreement into a new occupation contract. It also provides guidance on the key differences in law for converted contracts.

Renters' Rights Act contract update (1st June 2026)

The Renter's Rights Act is legislation aimed primarily at England but it does affect occupation contracts in Wales by inserting new fundamental terms into most occupation contracts.

These new terms prevent discrimination against families and tenants receiving benefits in Wales. You can read more in our full guidance on the changes here. 

None of the other rules in the Renters' Rights Act, such as the ban on fixed term tenancies, the changes to possession grounds, or the ban on taking rent in advance will apply to Welsh landlords. In Wales, these requirements come into force on 1 June 2026.

When does this apply to my occupation contract?

The terms below will be inserted into your occupation contract on 1st June unless you, or your superior landlord, have taken out insurance before 1st June that restricts you from accepting tenants in receipt of benefits or allowing children to live in or visit the property. In these cases, the changes to your occupation contract do not apply until the existing insurance product ends. Once it does, you will need to serve this statement of variation within 14 days. 

How do I comply with these requirements?

If the changes to your contract apply, you will need to add new clauses to the occupation contract. This needs to be given to the tenants by 14 June 2026.

You can either give this to your tenants by providing an updated copy of your full written statement of terms, or by providing a statement of variation explaining the changes. 

Converted contracts

If your tenancy is a converted contract (ie it began before 1st December 2022), then the wording of the statement of variation will change depending on which provider you used. 

As our conversion templates are based on the Welsh Governments model written statement, you can use the wording provided by the Welsh Government for this. It is available here.