If you’ve been hit with a Rent Repayment Order and need more information on what this means, and if/how you can appeal the decision, you’re in the right place.
As property management experts, we want to make your life as a landlord easier. This includes helping you navigate the challenges that may come with being a landlord, such as receiving or being threatened with an RRO.
Before we go into what offences qualify for a Rent Repayment Order, let’s find out more about what they actually are…
What is a Rent Repayment Order in the UK?
A Rent Repayment Order (RRO) is a legal order in the UK which gives tenants the opportunity to reclaim up to 12 months worth of rent if their landlord has committed certain housing offences.
When Were Rent Repayment Orders Introduced?
Rent Repayment Orders were first introduced in England and Wales under the Housing Act 2004. They were originally used by local authorities to penalise landlords for Housing in Multiple Occupation (HMO) licensing offences.
Since the Housing and Planning Act 2016, RROs are now also used to protect landlords by giving them the right to make a claim for illegal eviction, breach of banning order, and other offences. We’ll touch on the specific offences below!
What is the Purpose of RROs?
The purpose of Rent Repayment Orders is to hold landlords accountable for housing offences, and to protect tenants by providing compensation to those affected.
By enabling tenants to reclaim a portion of their rent payments, RROs aim to rectify injustices such as illegal eviction, harassment, or failure to meet legal obligations regarding property licensing and maintenance.
Why Have I received a Rent Repayment Order?
You will only be issued a Rent Repayment Order if you have committed a housing offence, and there is sufficient evidence to prove this.
Offences That Can Lead to a Rent Repayment Order
For a tenant to successfully obtain an RRO, one of the following offences must have taken place (as set out in the Housing and Planning Act 2016);
Who is Responsible for a Rent Repayment Order?
Applications for a RRO can be submitted by either a local housing authority, or by tenants themselves.
The responsibility of processing a Rent Repayment Order lies with the First-tier Tribunal (Property Chamber), which handles applications and issues orders.
Who Gets the Repaid Rent?
If a Rent Repayment Order is granted, the repaid rent typically goes to the tenant(s) who made the application. Alternatively, the money may be sent to the local housing authority if the rent was initially paid through housing benefit, or the housing element of Universal Credit.
How Do RROs Work With Joint Tenants?
In cases where multiple tenants are involved, the refunded amount may be divided among them based on their share of the tenancy. This ensures that everyone affected by the misconduct receives fair compensation.
How Much Do I Need to Repay in a RRO?
The amount that landlords need to repay in a Rent Repayment Order (RRO) can vary depending on the specific circumstances of the case.
Generally, it can cover up to 12 months’ worth of rent payments. However, the exact amount is determined by the First-tier Tribunal (Property Chamber) based on factors such as the severity of the landlord’s offence and the financial impact on the tenants.
How to Pay a Rent Repayment Order
If you have received a Rent Repayment Order, you must follow the instructions provided by the tribunal that issued the order.
Should you not wish to dispute the order, you must stick to the deadline set for payment, as well as the method of payment requested from you.
It’s vital that you carefully adhere to these instructions to fulfil your legal obligations and avoid further penalties.
Appealing a Rent Repayment Order
Of course, it’s best to avoid getting involved in RROs where possible, by following legislation and maintaining a good relationship with your tenants. But where do you stand if you do find yourself with a Rent Repayment Order?
Can a Rent Repayment Order be Appealed?
Yes, landlords have the right to appeal a Rent Repayment Order (RRO) if they disagree with the decision made by the tribunal. The appeal process typically involves submitting an appeal application to the Upper Tribunal (Lands Chamber). The case will then be reviewed and a decision will be made based on the evidence presented.
Costs involved with Contesting an RRO
One of the most important things to consider when deciding whether to appeal a Rent Repayment Order is how much it may actually cost you to do so.
There are likely to be some steep legal costs to pay out, and your appeal may not be successful anyway, adding to your expense. Having said this, if you think you have a strong case to appeal, it could be worthwhile to protect your reputation as a landlord.
The exact costs involved with contesting a RRO vary from case to case, but as a general guide you may be looking at the following costs…
Is it Worth Trying to Appeal a Rent Repayment Order?
In many cases, landlords will decide it’s not worth the stress and potential extra money to pay trying to appeal a RRO. Ultimately, it depends on the circumstances of the case, how likely you think it is that you’ll win the appeal, and whether you’re willing to risk the extra costs and stress involved.
How Regular Landlord Inspections Help Avoid RROs
A key aspect of preventing disputes with tenants is ensuring the property you’re renting out is in good condition and avoiding improvement notices.
Having a check in report, regular mid-term property inspections, and check out reports, is the best way of spotting any issues early. If you are aware of issues or potential hazards, you can proactively address these before they become bigger problems.
For expert property services, reach out to the team at Arnold Inventories today to discuss how we can help you.