Over the last two decades, the private rented sector has transformed. Licensing, deposit protection, and safety rules have improved standards and reduced the number of “rogue landlords”. But with nearly 400 separate regulations to comply with — and more on the way — many landlords still face serious risk of landlord fines and Rent Repayment Orders (RROs).
To avoid liability, the answer should be simple: landlords must comply with all legal requirements, including obtaining necessary licenses (like for HMOs), serving proper notices and improvement orders, and following housing laws and regulations for repairs and tenant safety.
Ignorance of the law is no defence – if your properties or practices are not 100% compliant, you could be forced to pay thousands in reclaimed rent, fines or compensation.
Unfortunately though, with reports of firms contacting tenants to encourage suing their landlords in pursuit of compensation under ‘no win, no fee’ schemes, even 100% compliance might not be enough to stop landlords being taken to court so landlords need to be prepared to defend themselves from opportunist exploitation of rules in the tenant’s favour.
Landlord should also keep all their paperwork in order and as proof of their compliance and efforts to address any problem or resolve any dispute.
In short, landlords should always be ready to fight back in case a tenant is tempted or convinced to exaggerate a claim for monetary gain!
What Are Rent Repayment Orders?
A Rent Repayment Order (RRO) allows tenants or local authorities to reclaim rent where a landlord has broken the law. Common triggers include:
- Letting an unlicensed HMO
- Failing to protect a tenant’s deposit
- Ignoring gas or electrical safety requirements
Currently, tenants can claim back up to 12 months of rent. But under the forthcoming Renters’ Rights Bill, this could double to 24 months, with twice as long to make a claim. Claims may also be extended to cover “superior landlords”, such as rent-to-rent operators and corporate landlords.
Examples of RPOs and The Cost of Noncompliance
Recent cases show how quickly costs can spiral:
- £9,000 – for ignoring repair notices in Brent
- £10,000 – for failing to provide an electrical safety certificate in Hastings
- £312,000 – for running an unlicensed HMO in Northampton
- £1.44 million – for repeated planning breaches in Ealing
Fines are not limited to licensing breaches. Landlords risk penalties for:
- Gas and electrical safety failures (up to £30,000)
- Not protecting deposits (up to 3x deposit amount)
- Breaching right-to-rent rules (fines increased February 2024)
- Illegal eviction (soon subject to civil penalties of up to £40,000)
- Tax reporting errors (Capital Gains Tax fines start at £100)
Additional Implications
The fine itself is only part of the problem. A breach can also mean:
- Being unable to evict a tenant
- Being named on a public “rogue landlord” register
- Expensive legal and court fees
- Negative press coverage damaging your reputation
- A banning order, preventing you from letting at all
How to Avoid Rent Repayment Orders and Landlord Fines
With new rules arriving under the Renters’ Rights Bill, compliance is becoming tougher. To protect yourself:
- Stay Informed
Keep up with national legislation and local authority licensing schemes. Rules can change quickly—during the pandemic, 47 regulations shifted in a matter of weeks. - Get Professional Support
If you self-manage, consider engaging professionals to take on the workload and ensure you are 100% compliant in everything you do. They can help you avoid costly mistakes. - Keep Records
Always provide tenants with safety certificates, “How to Rent” guides, EPCs, and deposit documentation. Keep proof of delivery.
Rent Repayment Orders and landlord fines are on the rise.
The number of RPOs and fines issued has already risen in recent years as tenants and councils target rogue landlords. The proposed Renters’ Rights Bill will only increase the risks for all landlords and those who cut corners or fail to stay up to date.
While there isn’t yet a flood of tenant-led “no win, no fee” claims, some landlord group members are already reporting legal representation authorities contacting their tenants encouraging them to make a claim with the prime objective being to take advantage of the ‘chance to sue’.
The days of being a casual landlord are fading fast. Those who don’t take their responsibilities seriously risk costly claims, fines, and reputational damage.
When Enough is Enough
With mounting pressures—from regulatory overload to punitive penalties—a growing number of landlords are calling it quits.
- 31% of landlords are actively considering exiting the private rented sector, citing financial and legal stress. Mortgage Solutions
- 59% say they’re mulling an exit strategy—with 88% planning to sell. Property118
- Nearly 50% of landlords expect to be out of the market within five years. Property118
If you’re feeling the strain and worry you might become another statistic, you’re not alone—and you don’t have to go it alone.
Ready to Opt Out? We’re Here to Help.
If the constant burdens of compliance, potential landlord fines, and Rent Repayment Orders are wearing you down, it may be time to consider your next move.
Whether you’re downsizing or ready to bow out altogether, professional support ensures you’re making a smart, secure exit.
Reach out to the Landlord Sales Agency— we are specialists in helping landlords exit the PRS smoothly and profitably. .
Contact Landlord Sales Agency now to protect your equity and privacy—because when liability looms, informed action today can spare you headaches tomorrow.