Rent Repayment Orders
Where a tenant lives in a property that should have been licensed but was not, they can apply to the Residential Property Tribunal to claim back any rent they have paid during the unlicensed period (up to a limit of 12 months).
Councils may also reclaim any Housing Benefit that has been paid during the time the property has been without a licence.
What is a Rent Repayment Order?
A Rent Repayment Order (RRO) is a financial penalty that can be imposed upon a landlord who, without reasonable excuse, manages or lets a property which ought to be licensed under Part 2 or 3 of the Act and is not licensed.
An application to the Residential Property Tribunal for an order may only be made if the landlord has been convicted of the offence of operating a licensed property without a licence (see sections 72 and 95), or the local authority is satisfied the offence has been committed (even though the landlord has not been prosecuted for offence).
The Residential Property Tribunal may make an order if it is satisfied that the landlord has been convicted of the offence, or, that he has committed it.
Financial Impact of an RRO
The Residential Property Tribunal has the power to make an RRO for an amount equivalent to any rent received during the period of the offence up to a maximum of 12 months.
Who can apply for an RRO?
A Local Housing Authority (LHA) may apply for an order where housing benefit has been paid to that landlord during any period when such an offence was being committed. Different rules apply to decisions in respect of those applications depending on whether or not the landlord has been convicted of the offence.
Occupiers (including former occupiers) are also permitted to make an application to the RPT for an RRO where an order has already been granted to an LHA in respect of the same property or where the landlord has been convicted of the offence. (But any order made in favour of an occupier cannot relate to any sums paid by means of Housing Benefit). Any sum ordered to be paid under a RRO is recoverable as an ordinary civil debt. Sums owed to the LHA under a RRO are local land charges.
Sections s73, 74, 96 & 97 of the Act deal with Rent Repayment Orders.