Why it matters
What Rent Repayment Order (RRO) means for a landlord
A Rent Repayment Order hands rent back rather than paying a fine to the council, which is why it can hurt more than a penalty of the same size. Two changes from 1 May 2026 made it more serious: the maximum doubled to two years’ rent, and an order can now be made against superior landlords as well as the immediate landlord. In a rent-to-rent arrangement, the owner can be pursued alongside the operator who let the rooms, so handing a property to a guaranteed rent company does not hand over the risk.
Worked example
How it plays out
Five students rent rooms in an unlicensed HMO in Leeds from September 2026. The following summer they apply to the First-tier Tribunal for a Rent Repayment Order. The tribunal is satisfied beyond reasonable doubt that the licensing offence was committed and orders repayment of rent paid during the offence, taking the landlord’s conduct and circumstances into account. Because the rooms were let by a rent-to-rent operator, the tenants also name the owner, which the law now allows.
Common mistakes
Where landlords go wrong
- 01Assuming there is no risk without a criminal conviction.
- 02Believing a rent-to-rent arrangement protects the owner.
- 03Ignoring licensing because the tenants seem happy.
What to do
A short checklist
- Check licensing for every property, including any let through an operator.
- Keep records of when licence applications were made.
- Check any guaranteed rent agreement for who holds the licence.
Sources
- legislation.gov.uk: Housing and Planning Act 2016, section 44
- GOV.UK: Guide to the Renters’ Rights Act
- GOV.UK: House in multiple occupation licence
Checked against these sources on 16 September 2026. A guide to the rules in England, not legal advice: for a dispute or a possession claim, speak to a solicitor.