A Rent Repayment Order (RRO) is a legal mechanism in the UK that allows tenants, or local authorities, to reclaim rent that has been paid to a landlord when the landlord has failed to comply with certain legal obligations. These obligations often relate to property licensing and housing conditions under the Housing Act 2004 and the Housing and Planning Act 2016.
For letting agents and landlords, an RRO poses significant financial risk, as it can result in substantial repayments and reputational damage. Kamma’s platform helps letting agents avoid these risks by ensuring they are always up-to-date with property licensing requirements, preventing non-compliance that could lead to such orders.
In the context of property licensing, if a landlord has failed to obtain the correct licence for a rental property (such as an HMO or Selective Licensing), they may be subject to an RRO. This is especially relevant in areas where councils have introduced licensing schemes to ensure property standards and tenant safety.
Process
Tenant or Local Authority Application: The tenant or local authority applies to the First-tier Tribunal (Property Chamber) for an RRO.
Tribunal Hearing: The Tribunal reviews evidence and determines if the landlord is liable. The amount of rent to be repaid is decided based on the landlord's level of offence and other considerations.
Rent Repayment: If successful, the landlord is required to repay up to 12 months of rent or housing benefit received during the period of the offence.
N.B. Under the proposed Renters’ Rights Bill, RROs will increase from 12 months to 24 months of rent to be repaid.
When Can a Rent Repayment Order be Issued?
An RRO can be applied for if the landlord has committed one or more of the following offences:
Failure to obtain the appropriate property licence under the Mandatory HMO (Houses in Multiple Occupation), Additional HMO, or Selective Licensing schemes.
Illegal eviction or harassment of tenants.
Breach of a banning order (prohibiting landlords from renting out properties).
Violent entry into a property.
Non-compliance with an Improvement Notice or Prohibition Order related to housing standards.