What is an Occupation Contract?
Occupation contracts set out the rights and responsibilities of the parties. These have replaced most assured shorthold tenancies and licences to occupy. They are referred to as contracts and not tenancies. The parties to the occupation contract are known as the landlord and contract-holder. The property is known as the dwelling. There are two types of occupation contracts: 1) Standard; and 2) Secure.
Secure occupation contracts are intended for use by community landlords. We focus on standard occupation contracts which are used by private landlords.
Almost all tenancies and licences are occupation contracts where:
• Rent is payable (or other consideration);
• The contract is granted to at least one individual (who must be 18 or over); and
• The individual has the right to occupy a dwelling as a home (this does not have to be the contract-holder’s only or principal home).
There is no limit on rental value so occupation contracts include tenancies where the rent is over £100,000.
There are exceptions, for example, holiday lets, accommodation that is shared with the landlord and farm business tenancies.