Rent Repayment Orders (RROs) are an important mechanism for protecting tenants in England and Wales, ensuring that landlords adhere to their legal obligations and promoting fair rental practices. Here, we will explore what rent repayment orders are, how they operate, and provide insight on how landlords can avoid facing these orders.

What is a Rent Repayment Order?

A Rent Repayment Order is a legal provision that allows tenants to reclaim rent, that has been paid, in specific circumstances. This will be where a landlord has been convicted of a specific criminal offence, or where the applicant (the tenant or local housing authority) can prove that an offence has been committed (to the criminal standard of proof). This could be due to, for example, rent collected when a property is unlicensed (where licensing is required).

These orders were introduced under the Housing Act 24 and expanded under the Housing and Planning Act 2016, and they empower tenants to seek reimbursement of rent paid during periods where they were ineligible to be charged such rent (due to the landlord’s illegal actions).

How Do Rent Repayment Orders Operate?

To pursue a Rent Repayment Order, tenants will need to apply to the First-tier Tribunal (Property Chamber). The process usually involves the following steps:

1. Gathering Evidence: The tenant will need to collect all relevant documentation as evidence of their claims. This may include payment receipts, tenancy agreements, and correspondence with the landlord.
2. Filing an Application: The tenant must submit their application to the First-tier Tribunal, detailing the circumstances leading to the claim for a Rent Repayment Order, including the amount of rent being sought.
3. Tribunal Review: The Tribunal will review the application and the accompanying evidence. If the case meets the necessary criteria (i.e. essentially proving that the landlord has been convicted of a specific criminal offence, or where the applicant can prove that an offence has been committed to the criminal standard of proof), they may issue a rent repayment order in favour of the tenant.
4. Enforcement: Should the landlord fail to comply with the order to repay the specified amount, further enforcement actions can be initiated by the tenant (such as seeking a County Court judgment, which is done by way of the tenant filing a Tribunal decision with the county court for this to be recognised as a County Court Judgment).

How Can Landlords Avoid Rent Repayment Orders

Landlords can take several proactive steps to mitigate the risk of being issued a Rent Repayment Order, which includes as follows:

1. Understanding Their Legal Obligations: Landlords should familiarise themselves with their responsibilities under the Housing Act 2004, the Housing Health and Safety Rating System (HHSRS), and other applicable regulations. A well-informed landlord is less likely to violate any tenant rights.
2. Ensuring Proper Licensing: For properties that are in relevant designated areas, ensure that appropriate licenses are obtained to avoid penalties. This is crucial for Houses in Multiple Occupation (HMOs) or other regulated rental properties.
3. Maintaining Habitable Conditions: Regularly inspect and maintain rental properties to ensure that they meet health and safety standards, and address any repair issues promptly to stay compliant.
4. Complying with Deposit Protection Schemes: If taking a security deposit, ensure that it is protected in a government-approved scheme and that the tenant(s) receive the prescribed information regarding their deposit rights.
5. Open Communication: Maintain open lines of communication with tenants regarding any issues or concerns. A responsive landlord can resolve many issues before they escalate to legal disputes.

By understanding the framework surrounding Rent Repayment Orders and taking proactive measures, landlords in England and Wales can protect themselves from potential claims while fostering positive relationships with their tenants. Ultimately, adhering to the legal requirements not only minimises financial risks but also enhances the overall experience of renting for everyone involved.

How we can help

If you are a landlord and need advice on a rent repayment order or to mitigate your risk of being issued one, our highly experienced Disputes Resolution team who specialise in Property Litigation are here to help. Contact us on 0203 440 8000 or email disputes@tvedwards.com.