Renting Homes (Wales) Act 2016 – Converted Contract Reminder

Did you have an existing tenancy or licence, usually an Assured Shorthold Tenancy (AST), on the 1 December 2022? If yes, the written statement of the converted contract must be provided to the contract-holder(s) by the 31 May 2023.

You must also give the contract-holder(s) an address to which documents may be sent that are intended for you, using form RHW2.

What do you need to do?

Conversion strikes a balance between the required terms necessary for the occupation contract to operate under the Renting Homes (Wales) Act 2016,

whilst making specific provision for some existing terms of your original tenancy or licence to be maintained within the converted contract. There is no model written statement (MWS) of contract available from the Welsh Government for a converted contract as existing ASTs will vary considerably. However, a good starting point is to use the model written statement from Welsh Government for new occupation contracts and then compare it with your previous AST to produce a new bespoke version of a written statement specific to your rental.

Important reminder for converted contracts: Act before 1 June 2023

You need to do the following:

1. Look at your old AST and compare it to the Read all the fundamental (F and F+) terms in the MWS and if any are incompatible with the terms in the AST, remove the terms in the AST and keep the ones from the MWS.
2. Look at the remaining terms of the AST, and assess whether they are incompatible with the supplementary terms of the MWS? If so, remove the terms from the MWS and keep the ones from the AST.
3. Lastly, any existing terms of the AST which remain after this comparison process is

completed will form part of the occupation contract as additional terms.

Your new converted contract will now likely contain four sets of terms:

• Key Terms (e.g. address of the dwelling and parties to the contract)
• Fundamental Terms
• Supplementary Terms
• Additional Terms (comprised of previous terms of the AST that are not fundamental terms or supplementary terms)

This is what you issue to the contract-holder(s) as the written statement.

What are the penalties?

Failure to provide a complete Written Statement by 31 May 2023 could result in 2 months rent being paid back to the contract holder in compensation. It may also result in your Rent Smart Wales licence being revoked. You will also be unable to issue a landlord’s notice for six months, starting with the day the written statement was actually provided.

Who does it affect?

All tenancies (such as ASTs) and licences in place before the 1 December 2022 which then converted on that date.

However, on the 25 April 2023, the Welsh Government created new Regulations to clarify the position on when to issue a converted written statement in the following instances:

Where a substitute contract has arisen after the initial converted contract has ended

For example: where the initial converted contract was a fixed term AST, but the contract-holders have stayed in occupation after the fixed term and created a new ‘substitute contract’ (whether fixed or periodic).

Where there has been a change in the identity of initial contract holder(s)

For example: on a shared contract or where someone has succeeded the contract.

In these instances, landlords have additional time to issue a written statement:

Circumstance	New Timescale
A change in the identity of the contract-holder (under a converted or substitute contract) during the period 01/12/2022 and 31/05/2023	The landlord is required to provide a written statement within 14 days of either 1 June 2023 or, if later, the day on which the landlord becomes aware of the change in contract-holder
Where a substitute contract comes into existence during the period 01/12/2022 and 31/05/2023	The landlord has 14 days from 1 June 2023 to provide a written statement
Where a substitute contract comes into existence after the 31/05/2023	The landlord has 14 days from the date of occupation under that substitute contract to provide a written statement

  

Additional Guidance and Help

A step-by-step guide to creating your converted written statement can be read here on the Welsh Government website.

It is important landlords review this guidance and the frequently asked questions even if they have already issued their written statement. The Regulations recently passed by the Senedd may require you to take additional actions. Renting Homes: FAQs.

You can download model contracts, standard forms and guidance on the Welsh Government website. Click here to view resources.