Reading a post from David Smith recently, it seems that many Welsh landlords are using the Welsh Government’s Model Contract in an unamended form.

By way of background information.

From 1 December 2022, new rules have come into effect in Wales.  These include prescribed terms for tenancy agreements (or ‘occupation contracts’ as they are now called), which are now mandatory.

But landlords using the model contract unamended obviously don’t realise that it omits many clauses which most landlords would expect to find.  Indeed I suspect landlords using the model contract will be shocked to learn that they are not there.

For example:

17 missing clauses in the Welsh Model Contract

• The contract does not set out the circumstances when landlords can make deductions from their deposit.  This is essential if the landlord wants to make a claim. Rendering deposits taken by landlords using the model contract useless.  (This is the main issue discussed in David’s post)
• The contract does not provide for rent to be payable in advance.  So the default position will apply – which is that rent is payable in arrears
• There is no prohibition of deductions (other than those allowable by law) from the rent
• It does not provide for interest to be payable on unpaid rent
• It does not provide for payment of utilities
• It does not say that tenants must use the property as their ‘only or principal home’ – meaning that the landlord will be unable to use the abandonment procedure or end a joint contract holder’s contract if they move out
• It does not place any limit on visitors
• It does not prohibit pets
• It does not provide for you to recover lost tradespersons fees when contract holders refuse them access
• It does not provide for landlords to be able to show the property to prospective contract holders or buyers
• It does not require contract holders to keep fire escapes clear
• It does not provide for the contract holders to look after any garden
• It does not require contract holders to obtain the landlord’s permission before doing redecorating
• It does not require contract holders to give vacant possession at the end of the contract (ie not leave lodgers living there)
• It does not require contract holders to provide a forwarding address and telephone number when they leave
• It does not provide for dealing with items left behind at the end of the contract
• It does not have any clauses relating to data protection

This is just a quick list made by looking through our Landlord Law Welsh Occupation Contract and listing some of the additional clauses we have added.

These aren’t the only ones, there are a lot more (and missing clauses is not the only problem). But these are some of the most important omitted clauses.

In the Welsh Government’s defence

The Welsh Government will no doubt say that these are all matters which landlords should to add to their contracts themselves. It is not up to government to help them.

Which is fair enough, save that by calling it a ‘model contract’ they are conveying the impression that it contains everything a landlord needs.

What it actually is, in fact, is a list of all the prescribed terms which need to be included in contracts.

It might be helpful if this were made clearer.

Make sure you use an amended agreement

So, if you are a Welsh landlord, please do not use an unamended model contract. You could find yourself in serious difficulty.

There are plenty of decent Welsh occupation contracts around – for example, the NRLA have them, and there is a Propertymark version, which will be used by many agents.

Needless to say, we have amended Welsh occupation contracts on Landlord Law for our members, which include all the additional clauses we consider necessary. They have also been checked over and approved by our Welsh members.

Find out more about the Landlord Law tenancy agreements and occupation contracts. You can also check out the content we have for Welsh members.

The post 17 Reasons NOT to use the Welsh Government’s Model Contract appeared first on The Landlord Law Blog.