Can You Legally Be a Tenant Without Paying Rent in Wales?

Tenancy law in Wales can be confusing, especially when it comes to unusual situations—such as being a tenant without paying any rent. Whether you’re living in a property rent-free by agreement, as a favour, or due to a breakdown in payments, it’s important to understand how Welsh law views your rights and status. This guide examines what it means to be a tenant without paying rent in Wales and what legal protections you may (or may not) have.

Understanding Tenancy and Rental Payments in Wales

In Wales, tenancies are primarily governed by the Renting Homes (Wales) Act 2016. This legislation sets out who is considered a tenant or ‘contract-holder’, what agreements are required, and what rights come with different arrangements.

Usually, paying rent is a key feature of a tenancy or occupation contract. However, there can be rare situations where someone occupies accommodation without a formal rent payment.

Can You Be a Contract-Holder Without Paying Rent?

Under the Renting Homes (Wales) Act 2016, a ‘contract-holder’ is a person who has a right to live in a property from a landlord under an ‘occupation contract’. Most occupation contracts involve rent, but the law also recognises that some contracts could exist without a rent being charged—often known as ‘rent-free’ or ‘peppercorn’ tenancies.

• If the landlord does not require any payment for occupation, they may still create a legally binding occupation contract by providing exclusive possession and setting out rights and responsibilities.
• The agreement can be written or verbal, but written is highly recommended for clarity and proof.

Although rare, this might happen when living in a property owned by friends, family, or an employer.

Occupiers With No Rent and No Contract

If you are not paying rent and have no formal contract, you may be considered a ‘licensee’ or simply a guest. In these cases, you often have fewer legal rights than a tenant or contract-holder. You can usually be asked to leave with little notice.

For example, if you are house-sitting for someone or staying temporarily with their permission, you are likely not a contract-holder. Read more about the different types of housing occupancy in Wales.

What Legal Rights Do Rent-Free Contract-Holders Have?

Even if you are not paying rent, you may still have legal rights as a contract-holder if there is a clear agreement. Rights can include:

• Protection from eviction without proper notice (usually with a ‘notice seeking possession’ under the law)
• Requirement for written occupation contracts as of 2022, under Part 2 of the Renting Homes (Wales) Act 2016
• Access to repairs and safe standards under housing health and safety regulations

Relevant Official Forms and How to Use Them

• Form RHW2 – Written Statement of Occupation Contract
  Use this form if your landlord hasn’t provided a written contract after you start your agreement. You can download model written statement forms here. For example, if you live rent-free in your friend’s flat and want clarity, you can request this statement to confirm your rights.
• Notice Seeking Possession (Section 173 Notice)
  This is served if your landlord wants to end a standard occupation contract (including rent-free cases). It must give you at least 6 months’ notice. For more, see the official government guidance.
• Application to the Residential Property Tribunal Wales
  If there is a dispute between you and your landlord (for example, regarding repairs or notice), you can apply to the Residential Property Tribunal Wales.

Check official forms and deadlines carefully to make sure your rights are protected.

Key Points to Remember

• It is possible to live as a contract-holder in Wales without paying rent if you have a clear, exclusive agreement with the landlord.
• Without a rent payment or a proper contract, you might be classed as a ‘licensee’ and have fewer rights.
• Written occupation contracts provide stronger legal protection.
• For legal disputes or applications, contact the Residential Property Tribunal Wales.

Frequently Asked Questions

1. Can I stay in a property in Wales without paying rent if I have permission?
   If you have exclusive possession and a written or verbal agreement, you may be a contract-holder even without rent. With only informal or temporary permission, you are likely a licensee with fewer rights.
2. What rights do I have if I don’t pay rent as a tenant in Wales?
   You may still have rights to notice before eviction, repair standards, and protection from unfair treatment if you are a contract-holder under an occupation contract, even rent-free.
3. Can my landlord evict me without notice if I don’t pay rent?
   If you are a contract-holder, your landlord must follow eviction notice procedures (such as a Section 173 Notice with 6 months’ notice). Licensees or guests can usually be asked to leave at shorter notice.
4. How do I request a written occupation contract?
   You can ask your landlord directly. If they refuse, use the Welsh Government’s model forms or seek support from Shelter Cymru.
5. Who handles disputes about rent-free tenancies in Wales?
   The Residential Property Tribunal Wales handles most disputes about residential tenancies.

Need Help? Resources for Renters

• Welsh Government – Renting Homes guidance
• Shelter Cymru – Free confidential advice for tenants
• Residential Property Tribunal Wales
• Citizens Advice Cymru – Housing help

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1. Renting Homes (Wales) Act 2016
2. Welsh Government – Renting Homes: changes for tenants and landlords
3. Residential Property Tribunal Wales

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