As a letting agency operating in Pembrokeshire for almost 20 years, we’ve witnessed first hand the challenges landlords face since the introduction of the Renting Homes (Wales) Act. While the Welsh Government’s model occupation contracts were designed to simplify the rental process, the reality is far more complex. The Renting Homes (Wales) Act represents the biggest change to housing law in Wales for decades, and many landlords are unknowingly putting themselves in vulnerable positions by attempting to navigate these waters alone.
The Illusion of Simplicity
The Welsh Government provides model written statements for occupation contracts, which on the surface appear straightforward. However, these model contracts can put landlords in a weaker position than they should be. The devil, as they say, is in the details – or more accurately, in what’s missing from these templates.
5 Critical Omissions That Leave Landlords Exposed
1. The Deposit Deduction Catastrophe
Perhaps the most shocking omission from the Welsh Government’s model contract is the complete absence of any provision allowing landlords to make deductions from deposits. While the model contract allows landlords to take deposits, it provides no contractual basis for making deductions to cover losses from tenant breaches.
This isn’t a minor oversight – it’s a fundamental flaw that renders deposit protection meaningless for landlords using the model contract. Deposit protection schemes can only authorise deductions where there’s clear contractual wording permitting them. Without this, landlords face the prospect of having to pursue costly court action for every claim, regardless of how legitimate or straightforward it might be.
Some deposit schemes are already refusing claims where appropriate wording doesn’t exist, and this problem will only worsen as more tenancies end. Landlords who assumed they had standard deposit protection are discovering they have virtually no protection at all.
2. Missing Property Management Clauses
The government templates frequently omit crucial property management provisions that professional agents include as standard:
- Clear guidelines on garden maintenance responsibilities
- Specific requirements for tenant-requested modifications
- Detailed inventory and check-in procedures
- Professional cleaning obligations at tenancy end
These omissions may seem minor, but they create ambiguity about responsibilities during the tenancy and at its end. Without clear property management terms, disputes over maintenance, modifications, and property condition become inevitable. What should be straightforward issues—who maintains the garden, what cleaning standard is expected—can escalate into costly disagreements when there’s no contractual clarity to reference.
3. Problematic “Unfit for Human Habitation” Provisions
The Welsh Government’s model contract includes a supplementary term stating that contract-holders are not required to pay rent for any period when the dwelling is “unfit for human habitation.” While this appears reasonable, the problem lies in the lack of definition around what constitutes “unfit” and the process for determining this.
This term is placed prominently as the second term in the model contract, making it highly visible to tenants who may use it as leverage in disputes. Without proper procedural safeguards, tenants could potentially withhold rent based on subjective interpretations of habitability, leaving landlords in difficult positions.
4. Absence of “Tenant-Like Manner” Provisions
A critical omission from the Welsh Government’s model contract is the lack of clear provisions requiring tenants to use the property in a “tenant-like manner.” This legal concept, well-established in property law, requires tenants to take proper care of the property and carry out minor maintenance tasks that a reasonable tenant would be expected to perform.
Without explicit tenant-like manner clauses, landlords may struggle to hold tenants accountable for:
- Failure to undertake basic maintenance such as changing lightbulbs or bleeding radiators
- Not reporting minor issues that could develop into major problems
- Neglecting to maintain adequate heating and ventilation to prevent damp and mould
- Failing to keep the property reasonably clean during the tenancy
- Not taking reasonable steps to prevent frost damage or other preventable issues
Professional contracts include detailed tenant-like manner provisions that set clear expectations and provide recourse when tenants fail to meet these basic obligations. This protects both the property’s condition and helps prevent minor issues from escalating into costly repairs.
5. No Primary Residence Clause: The Abandonment Nightmare
Another critical omission in the Welsh Government’s model contract is the lack of a clause requiring tenants to occupy the property as their primary residence. This seemingly minor gap can create major complications when dealing with property abandonment.
Without a primary residence clause, landlords face significant difficulties when tenants stop living at the property but don’t formally end the tenancy. The property may sit empty for months while rent goes unpaid, yet the landlord cannot easily prove abandonment or regain possession. The tenant maintains legal rights to the property even if they’re not living there, and the landlord is left in legal limbo.
Professional contracts include clear primary residence requirements, which provide crucial evidence when pursuing abandonment procedures. This clause establishes that the tenant’s failure to occupy the property as their main home constitutes a breach of contract, giving landlords a clear legal pathway to regain possession. Without it, the abandonment process becomes significantly more complex, time-consuming, and expensive.
The False Economy of DIY Property Management
Many landlords are attracted to the apparent cost savings of managing properties themselves using the government’s free template. However, this approach often proves to be a false economy. In our practice, we’ve recently seen landlords unable to recover deposit deductions despite clear tenant breaches, tenants withholding rent based on broad interpretations of “unfit for human habitation,” and properties left in poor condition with no effective recourse due to weak maintenance clauses.
The hidden costs of going it alone include legal disputes from poorly drafted clauses, void periods from inadequate tenant screening, property damage not covered by basic agreements, and compliance penalties for regulatory breaches. A single legal dispute or compliance failure can cost thousands of pounds – far exceeding the annual cost of professional management.
The Professional Advantage
Licensed letting agents bring expertise that protects your investment. We customise our contracts to maximise landlord protection while remaining compliant, including properly drafted deposit deduction clauses, balanced habitability provisions, and comprehensive tenant-like manner requirements. We stay current with regulatory changes, ensuring all documentation meets the required 14-day timeframes, and we identify potential problems before they occur through carefully drafted contract terms and robust tenant screening.
Terms marked (F) cannot be omitted or modified, while those marked F+ can be omitted or modified with the contract-holder’s agreement only if they believe it’s in their benefit. Understanding these nuances requires professional expertise that’s constantly updated.
Protecting Your Investment
Property investment in Wales can be highly rewarding, but the regulatory landscape is complex and constantly evolving. The Renting Homes Act has fundamentally changed how residential lettings operate, and the government’s model contracts, while useful starting points, simply don’t provide the comprehensive protection that landlords need.
As a Welsh landlord, your property is likely one of your most significant investments. The question isn’t whether you can afford professional letting services – it’s whether you can afford to operate without them. Successful landlords recognise that professional expertise isn’t an optional extra – it’s an essential component of effective property investment.
Don’t let the apparent simplicity of model contracts lull you into a false sense of security. The risks are real, the consequences can be severe, and the professional solutions are readily available. Your investment deserves nothing less than expert protection.
For more information about professional letting services in Wales and how we can protect your property investment, contact us for a no-obligation consultation. Our team of licensed professionals is here to ensure your letting experience is both profitable and stress-free!
