A Rent Repayment Order (RRO) is an order from the First-tier Tribunal (Property Chamber) requiring a landlord to repay up to 12 months' rent to a tenant or the local authority. RROs were introduced by the Housing Act 2004 for unlicensed HMOs and extended significantly by the Housing and Planning Act 2016 and the Renters' Rights Act 2025. Understanding what triggers an RRO — and how to avoid exposure — is one of the most important compliance obligations for landlords in England.
Up to 12 months' rent — regardless of whether the tenancy continues
The First-tier Tribunal can order repayment of up to 12 months' rent. For a property renting at £1,200/month, that is up to £14,400. RROs can be applied for by both tenants AND local authorities. A tenant does not need to have vacated to apply — they can apply while still in occupation.
What triggers a Rent Repayment Order?
- Unlicensed HMO: Operating a property that requires a mandatory HMO licence (5+ occupants, 2+ households) without a licence — the original and most common trigger
- Unlicensed selective or additional licensing: Letting in a selective or additional licensing area without the required licence
- Breach of a banning order: Letting property when subject to a banning order under the Housing and Planning Act 2016
- Illegal eviction: Evicting a tenant without a possession order — forcing a tenant out by changing locks, removing belongings, or cutting off utilities
- Harassment: Conduct intended to make the tenant give up occupation or interfere with their quiet enjoyment
- Retaliatory eviction: Under the Renters' Rights Act 2025, serving a possession notice in retaliation for the tenant exercising their statutory rights (e.g. making a complaint to the local authority)
- Non-membership of PRS Ombudsman scheme: When the mandatory PRS Ombudsman scheme is operational, letting without membership is an RRO trigger
How much can the tribunal award?
- The maximum award is 12 months' rent — calculated as the actual rent paid during the relevant period (up to 12 months)
- The tribunal has discretion — it considers the severity of the offence, the landlord's conduct, and the financial impact on the tenant
- For minor or first-time offences (e.g. brief licence lapse), the tribunal typically awards a lower amount — 25–50% of the maximum
- For serious, deliberate, or repeated offences (e.g. illegal eviction, persistent unlicensed letting), the tribunal can award the full 12 months
- Both the tenant and the local authority can apply — if a local authority obtains an RRO, the money goes to the local authority, not the tenant
- Multiple tenants can each apply for their own RRO for the same property — the total award is not capped at 12 months' rent across all applicants
Defences available to landlords
- Reasonable excuse: For licensing offences — if the landlord had a reasonable excuse for not holding a licence (e.g. they applied and were awaiting a decision, or they were not aware the area had been designated), the tribunal may reduce or refuse the award
- No offence committed: If the landlord can demonstrate they were not in breach — e.g. the property did not require a licence, or the offence alleged did not occur
- Conduct and circumstances: The tribunal considers the landlord's overall conduct — a landlord who co-operated with the local authority, promptly applied for a licence on discovery, and maintained a compliant property will receive a lower award than one who ignored enforcement notices
- RROs cannot be challenged on the grounds that the rent was market rate or that the tenant received good value — the offence is the trigger, not the quality of the let
How to avoid RRO exposure
- Check licensing requirements before every letting — use the local authority's postcode tool
- Apply for a licence as soon as a designation takes effect — do not continue letting without a licence
- Never evict without a possession order — changing locks on an occupied tenant is always unlawful
- Respond to all tenant complaints in writing and within the required timeframes — do not ignore complaints or threaten possession as a response
- Join the PRS Ombudsman scheme as soon as registration opens
- Keep copies of all licence applications, responses, and communications with the local authority — these are essential defences in any RRO application