The New Reality of Rent Repayment Orders (RROs)

New Renters Rights Act 🚨

The landscape of private renting in England has fundamentally changed. With the recent passage of the Renters Rights Act, landlords are facing a pivotal moment that brings with it unprecedented financial risks and compliance challenges.

It's no longer enough to be a 'good' landlord; you must now be a fully compliant landlord to protect your investment. The new law significantly strengthens the hand of tenants and local authorities, empowering them with severe financial penalties for non-compliance.

Threat 1: The New Reality of Rent Repayment Orders (RROs)

Rent Repayment Orders (RROs) have always been a serious threat, but the new Act dramatically increases their danger.

The law now allows tenants to claim back up to two years' worth of rent from non-compliant landlords – a sharp increase from the previous 12-month cap.

This change means a single breach of the rules could cost you double what it would have before. RROs are not just for the most serious criminal offences; they can be applied for offences like:

• Failure to comply with an Improvement Notice issued by a local authority.
• Operating an unlicensed property where a licence is required (e.g., an HMO or in a Selective Licensing area).
• Unlawful eviction or harassment of an occupier.

The expansion to include superior landlords is a critical consideration for those in complex letting arrangements (like rent-to-rent). The ultimate property owner can now be held jointly and severally liable, ensuring authorities can target the 'asset-rich' party.

Threat 2: Civil Penalty Notices – Bigger Fines, Broader Scope

The Act has also significantly strengthened the enforcement powers of local councils through the use of Civil Penalty Notices (CPNs).

Councils now have a wider range of non-compliance issues for which they can issue CPNs, and the financial bite is much sharper:

• For serious or repeated non-compliance, civil penalties could rise to up to £40,000, with lower penalties of up to £7000 for first or minor breaches.
• New grounds for penalties include a wide array of new Act breaches, such as failing to comply with the new Decent Homes Standard or unlawfully refusing a tenant's request for a pet without a 'good reason'.
• Councils can impose these financial penalties without the need for a criminal court hearing, making enforcement swifter and more resource-efficient for them.

This creates a high-stakes environment where administrative oversight or a slow response to maintenance could easily result in thousands of pounds in fines.

The Decent Homes Standard and Awaab's Law

Beyond RROs and CPNs, the Act brings the Decent Homes Standard and Awaab's Law into the Private Rented Sector (PRS). This means:

• Higher Property Standards: Your properties must now meet clear health, safety, and condition standards to be legally compliant.
• Strict Timeframes for Repairs: The inclusion of Awaab's Law will impose legal deadlines for responding to and fixing serious health and safety hazards, particularly damp and mould. Failure to meet these deadlines opens you up to CPNs, RROs, and potential prosecution.

This is a fundamental shift from reactive maintenance to a regime of proactive compliance with hard deadlines.

Your Essential Compliance Managing Letting Agent

The old ways of managing a tenancy are gone. To safeguard your financial future in this new era, you need an updated strategy.

Our fully managed service will ease all the threats posed by the Renters Rights Act and give you peace of mind while mitigating your risk:

Part of our service:

• 🔍 Understanding the Triggers: Pinpoint the exact scenarios that now make you vulnerable to a 2-year Rent Repayment Order.
• 🛡️ Building a Defence Strategy: Understanding the compliance checklists and record-keeping practices that provide a robust defence against Civil Penalty Notices.
• ⚖️ Navigating the New Grounds for Possession: Understanding the abolition of Section 21 and how the enhanced Section 8 grounds work to ensure you can still regain possession when you legally need to.

Don't wait until a penalty notice lands on your doormat. The time to act is now.