What is a rent repayment order? A simple guide for landlords

If a landlord breaks the law, the tenant can apply to recoup up to 12 months of their rent. This is known as a rent repayment order (RRO). 

The vast majority of landlords don’t have to worry about RROs, but it’s important to be aware of the most common causes and how to avoid them. There are also changes to rent repayment orders expected as part of the upcoming Renters’ Rights Bill.

What is a rent repayment order? 

Rent repayment orders give tenants and local authorities the powers to take action against landlords who break tenancy laws.

Landlords who are found guilty by an independent tribunal can be ordered to return thousands of pounds of rent they’ve been paid.

RROs have been around since 2004, but it wasn’t until measures were introduced as part of the Housing and Planning Act 2016 that tenants were able to use them. 

How does a rent repayment order work?

Tenants can apply for a rent repayment order to recover up to 12 months’ rent from their landlord. To apply, the tenant has to pay a fee which they can recover if their case is successful.

The application can be made against a landlord for an offence committed in the previous 12 months. 

The tenant has to apply to the First-Tier Tribunal (FTT) for a RRO. The tribunal must be satisfied beyond reasonable doubt that the landlord has committed the offence.

Rent repayment order guidance states that the landlord doesn’t need to have been criminally convicted for the offence for the tenant to apply for a rent repayment. 

The FTT will also award legal costs. These are likely to be awarded in favour of the tenant, unless their RRO claim is unfounded. 

Local authorities can also apply for an RRO if a tenants’ rent is paid using housing benefit or Universal Credit.

Changes to rent repayment orders under the Renters’ Rights Bill

The government has outlined a number of changes to rent repayment orders as part of the Renters’ Rights Bill that’s currently making its way through parliament. 

The maximum amount a tenant can claim, and the period in which the offence was committed, will be doubled to 24 months.

And with the aim of penalising repeat offenders, landlords will be required to pay the maximum RRO if they commit the same offence again.

The list of offences that a tenant can apply for a rent repayment order for will also be expanded to include: 

• recklessly or knowingly misusing a possession ground
• supplying false information to the Private Rented Sector Database
• breaching restrictions on letting or marketing a dwelling-house

And if landlords are fined for the following offences and continue to break the rules, they could be ordered to repay tenants’ rent for:

• failing to register with the Private Rented Sector Database 
• breaching tenancy reforms 
• breaching landlord redress scheme regulations

“Innocence of law” is no defence for landlords who break the rules

Landlords should be aware that failing to know the laws they need to follow isn’t seen as a defence for being ordered to repay rent. 

This follows the Leibel v Baird case from 2021. A landlord’s tenant realised the property, which had five occupants, didn’t have an HMO licence. At first, the landlord claimed only four tenants lived at the property and that he wasn’t aware it would need a licence. 

It then became clear that he had been receiving rent payments from five tenants and was ordered to repay rent due to his breach of the law. After trying to mislead the tribunal, the landlord was ordered to pay a rent repayment order of over £5,000 as well as costs of over £20,000.

Lack of licence common cause of rent repayment orders

The most common example of landlords being ordered to repay rent is for failing to have the correct licence.

If you rent out an HMO, it’s highly likely you’ll need a licence. And depending on the location of your property, there may be a local licensing scheme that you need to sign up to.

Having the right licence in place means you won’t be breaking the law and will be less likely to be ordered to repay rent to your tenants.

Do you have any unanswered questions about rent repayment orders? Let us know in the comments below.

Useful guides for landlords

• HMO requirements – what is the minimum bedroom size in the UK?
• How often should landlords redecorate a rental property?
• Rental property noise complaints: a guide for landlords
• Are landlords responsible for pest control in rental properties?

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