The Landlord's Guide to Rent Repayment Orders

Rent Repayment Orders (RROs) are becoming increasingly common and will soon gain more power when the Renters’ Rights Bill becomes law.

In the government’s own words, Rent Repayment Orders were introduced to deter landlords from non-compliance and empower tenants to take action against criminal landlords.

While most landlords work hard to provide a high standard of living and professional service to their tenants, it’s important to familiarise yourself with the offences that can result in an RRO. Understanding the rules is key to ensuring compliance and avoiding penalties.

The Renters’ Rights Bill is introducing several important changes to Rent Repayment Orders. With the bill poised to become law around summertime this year, now is a good time to familiarise yourself with the upcoming changes. The new legislation will strengthen Rent Repayment Orders, hold landlords accountable to stricter standards, and provide tenants with greater protection against poor-quality rental properties and unscrupulous landlords.

In this article, we’ll explain key information about how Rent Repayment Orders work, including the offences that can lead to an order and how the process works. We’ll also cover everything you need to know about the upcoming changes to RROs being introduced by the Renters’ Rights Bill.

What is a Rent Repayment Order (RRO)?

Rent Repayment Orders were first introduced in the Housing Act 2004 and later expanded by the Housing and Planning Act 2016.

Currently, RROs allow tenants or local authorities to claim back up to 12 months’ worth of rent if they can prove beyond reasonable doubt that the landlord is guilty of one of the seven specified offences.

RROs were introduced as a deterrent. By penalising unscrupulous landlords, the law aims to encourage landlords to take their legal responsibilities seriously and improve the quality of housing in the private rented sector.

Today, RROs can only be made against the immediate landlord, not a superior landlord (in the case of a rent-to-rentsituation). However, this is just one aspect of RROs that is set to be transformed by the Renters’ Rights Bill. More on that later.

When can tenants apply for a Rent Repayment Order?

Tenants, or in some cases, local authorities, can apply for a Rent Repayment Order if their landlord has committed one of seven qualifying offences.

Violence for securing entry.
Eviction and harassment of occupiers.
Failure to comply with an improvement notice.
Failure to comply with a prohibition order.
Control or management of an unlicenced house.
Control or management of an unlicenced HMO.
Breach of a banning order.

When applying, tenants must provide sufficient evidence to support their claim, and the First-tier Tribunal will then assess whether the offence has been proven beyond reasonable doubt.

What is the process for applying for a Rent Repayment Order?

Tenants can apply to the First-tier Tribunal for a rent repayment order if their landlord has committed one of the seven offences outlined above. If the application is successful, the tribunal will order the landlord to pay back a specified amount of rent to the tenant.

The whole process can go through the tribunal; the landlord doesn’t need to be convicted of an offence in the courts.

The landlord is accountable for the offence and will need to pay the penalty, even if the breach was committed by a letting agency they have instructed to manage the property on their behalf. This highlights just how important it is that landlords are proactive about overseeing and ensuring that their property is being managed in full compliance with the law.

When deciding how much rent the landlord must repay to the tenant, the First-tier Tribunal considers several factors, including:

The conduct of the landlord and the tenant.
The financial circumstances of the landlord.
Any previous convictions.

A successful application can currently result in the landlord being instructed to repay up to 12 months of rent to the tenant.

What happens after a Rent Repayment Order is issued?

If the First-tier Tribunal approves a tenant’s RRO claim, a letter is then issued to the landlord confirming the tribunal’s decision. The letter will contain details of how much rent is to be repaid and when it must be repaid by.

The landlord must then arrange to repay the amount within the specified timeframe. If they fail to do so, the tenant or local authority may take further legal action, such as applying for a court enforcement order or seeking interest on the unpaid amount.

An RRO is not a criminal conviction. However, being on the receiving end of one can still have long-term consequences, including increased scrutiny by local authorities, reputational damage, and ineligibility for property licences.

Rent Repayment Orders and the Renters Rights Bill

The Renters’ Rights Bill aims to give private renters greater security and stability and improve the standard of living in the private rented sector (PRS). It is set to introduce many changes to the sector, including the abolition of Section 21 no-fault evictions, the introduction of a new private rented sector database, and the application of the Decent Homes Standard to the PRS.

The bill is also set to strengthen Rent Repayment Orders to increase their deterrent effect and make them more accessible to tenants. Below, we’ve outlined how the Renters’ Rights Bill is set to change Rent Repayment Orders.

Increase in maximum rent repayment amount

Under the Renters’ Rights Bill, rent repayment penalties will become more severe to further deter landlords from breaching the law.

Increase in maximum repayment amount: The maximum amount that a landlord can be ordered to repay will double from 12 months’ rent to 24 months’ rent.
Extended application window: The period in which a tenant can apply for a rent repayment order will increase from 12 to 24 months after the offence.
Mandatory maximum repayment: Landlords who are either convicted of a licensing offence or issued a financial penalty will be required to pay the maximum amount. This will also apply to repeat offenders.

New Rent Repayment Order offences

The Renters Rights Bill will expand the scope of RROs by adding six new offences, these are:

Knowingly or recklessly misusing a possession ground.
Breach of a restriction on letting or marketing a house.
Continuing or repeat breach of landlord redress scheme.
Providing false information to the PRS Database.
Continuing or repeat breach of PRS database.
Continuing breaches of tenancy reform.

New investigatory powers for local authorities

Local authorities will be granted new investigatory powers to help them investigate landlords who are suspected of offences. These powers will include:

The ability to enter business premises without prior notice.
Authority to request information from third parties like banks and accountants to build evidence against landlords.

Extending RROs to include superior landlords and company directors

Currently, RROS can only be issued against the immediate landlord. The Renters Rights Bill will extend this to include superior landlords and company directors to ensure that criminal rent-to-rent arrangements can be properly held to account.

Defending against a rent repayment order

If you’re facing a rent repayment order claim that you don’t feel is fair, you will need to gather plenty of evidence to defend your case.

Understanding the grounds for the RRO claim

The first thing you must do is make sure that you have a thorough understanding of the specific grounds under which the RRO claim is being made. Each offence has unique legal requirements, so knowing these will help to build an effective defence strategy.

Gather evidence

The type of evidence you require will depend on the offence that the tenant is claiming you have committed and the nature of the claim. Common examples include:

Property inspection records.
Safety certificates.
Communication records.
Proof that proper legal processes have been followed.
Evidence of exemption or mitigating circumstances.

Seek legal advice

For more complex RRO cases, it is highly recommended that you seek professional legal advice to help you build a strong case and achieve the best possible outcome.

Appealing a Rent Repayment Order

If the tribunal rules against you, you may have the option to appeal the decision. However, appeals are typically only granted if you can prove that the tribunal made an error in law.

How to avoid Rent Repayment Orders

If you maintain the condition of your rental properties, comply with the law, and provide tenants with a high level of service, then there should be no need to worry about Rent Repayment Orders.

RROs are there to deter landlords who are breaking the law, so the best way to protect yourself is to familiarise yourself with your legal obligations and take proactive measures to ensure you meet them to minimise the risk of receiving an RRO.

Ensure you have the right property licences

Not all properties require licences, but it is your responsibility to find out whether one is required and then apply for and renew the licence as needed. Most houses in multiple occupation (HMOs) require a licence, as do properties in areas with selective licensing schemes implemented by local authorities. Non-compliance with licensing rules is one of the most common reasons for RRO claims.

Keeping safety certificates up to date

You are also responsible for ensuring that your rental properties meet all relevant health and safety standards. This includes obtaining and maintaining safety certifications, including:

Gas Safety Certificate
Electrical Installation Condition Report (EICR)
Fire safety measures (like fire and carbon monoxide alarms)

Regularly inspecting and maintaining the property

Carrying out regular, routine property inspections can help you identify and address any issues before they become more serious. When carrying out an inspection, look out for any potential safety hazards and ensure that you resolve any issues identified promptly.

Documenting all tenant interactions and legal processes

Keep records of all communications you have with tenants, document property inspections, keep evidence of maintenance tasks carried out, and all servicing and safety inspection certificates. Maintaining thorough records can provide you with evidence and legal protection if you ever need to defend yourself against an RRO claim.

Rent Repayment Orders are designed to penalise landlords who fail to comply with housing laws. You can significantly minimise the risk of facing an RRO by staying informed about changes to legislation and taking proactive steps to meet your obligations as a responsible landlord.