Tenants (contract Holders notice) Wales regs?

Tenants (contract Holders notice) Wales regs?

11:45 AM, 26th January 2022, About 4 months ago 18

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While reading the new Welsh Contract holder regulations due to come into effect, it left me with questions, I have many but the main three are:-

Firstly – Is it correct that tenants (sorry contract holders) can terminate a fixed-term contract at any time, just by giving 4 weeks notice? This seems stupid that the landlord must give 6 months, but that the contract holder can simply give 4 weeks. We have always given a 12 month tenancy to provide security for the tenant and us, but 4 weeks notice no longer gives the landlord any security.

Secondly – If a tenancy agreement is in place at the switch over, does anyone have a template that should be sent to the tenant, to tell them that they are now called “contract holders”?

Thirdly – It seems that the tenant is allowed to take in a “lodger” without asking for Landlord permission. This can invalidate landlord insurance and if the house is licenced for “X” occupants then it would breach the licence terms if a lodger made it “X+1”

Many thanks

Chris



Comments

by Chris Bradley

13:12 PM, 26th January 2022, About 4 months ago

Further to this post the one month notice clause that I read was the periodic contract which makes sense, but the fixed term contract template which was in section 3 doesn't have a place to enter the term of the contract just a place to say when the tenant can't live in the property- maybe for students over summer holidays, but surely if they pay rent you can't actually stop them from living there

by Paul Maguire

21:11 PM, 26th January 2022, About 4 months ago

This sounds similar to the Scottish "Model Tenancy Agreement" which became law a few years ago. No minimum or maximum term [for the tenant] but it doesn't allow lodgers, unless the landlord gives permission. It works well for tenants as it allows them to move in to one property whilst allowing them time to look around for another more suited property. If a tenant simply needs a property for a couple of months due to a job contract away from their own area it gives them a cheaper short-stay option. From the landlord's point of view it's impossible to calculate annual overheads when future income is uncertain. Rents were raised.

by Chris Bradley

21:22 PM, 26th January 2022, About 4 months ago

The model says that lodgers or sub contractor holders need landlord permission, but they can move anyone in providing they don't make them a lodger or sub contract holder.

Which means someone in theory could move several family members in provided they do not over occupy according to maximum occupancy rules.

So you could rent to a single person with one child, who could in theory move a boyfriend and their 4children in, and as long as no money exchanges hands landlord permission is not needed. Which could still be under the max occupancy rules, but would put extra wear and tear on the house than the landlord had budgeted for.

by Dylan Morris

22:07 PM, 26th January 2022, About 4 months ago

Fortunately my rental properties aren’t in Wales ……but if they were I’d sell up immediately whilst it’s still a good sellers market.

by David Price

7:32 AM, 27th January 2022, About 4 months ago

Both Landlord and Tenant are 'Contract Holders'.

by Chris Bradley

7:38 AM, 27th January 2022, About 4 months ago

Reply to the comment left by David Price at 27/01/2022 - 07:32
Technically yes, but the new Welsh tenancy agreement refer to the landlord and the contract holder(the tenant). While all the previous tenancy documents I issued always used the term "tenant" followed by what was permitted or denied for the tenant so there was no confusion the new model contract refers to the contract holder as "you or yours" and when I'm reading it of course it's confusing as the land lord is not you or yours.

by David Price

7:55 AM, 27th January 2022, About 4 months ago

Reply to the comment left by Chris Bradley at 27/01/2022 - 07:38I feel confused.conned! So pleased that I do not have any property in Wales

by Old Mrs Landlord

10:04 AM, 27th January 2022, About 4 months ago

Reply to the comment left by Paul Maguire at 26/01/2022 - 21:11A further, and I would think greater, concern for Scottish landlords according to Property Investor Post is that there are now no mandatory grounds for eviction as the temporary suspension of mandatory grounds brought in during Covid restrictions is being made permanent.

by Old Mrs Landlord

10:15 AM, 27th January 2022, About 4 months ago

Reply to the comment left by Chris Bradley at 27/01/2022 - 07:38
In other words, the contract is written entirely from the tenant's^ point of view. Can this be legal?

^Regardless of the terminology, he/she is still a tenant in law.

by Chris Bradley

10:22 AM, 27th January 2022, About 4 months ago

Reply to the comment left by Old Mrs Landlord at 27/01/2022 - 10:15
In Wales the tenant ceases to be a tenant under the new law in July 2022. The term tenant will no longer be recognised. The tenant from that date on becomes the "contract-holder".

The typos, the ordering of terms and use of complicated terms makes it difficult to read and understand. It's horrendous and the consultation that occured beforehand also pointed out that the ordering and terms were poor, and the response was that they mimic the terms and ordering in the Act. Well I think that the Welsh government missed out on an opportunity to provide an easily understood contract that could have been the forefront of the industry. In fact it's tooany steps backward to make it practical to use, which means many will use their own made up version, instead of the model contract. (I hate to say this but the England model contract makes so much more sense)

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