What Is A Rent Repayment Order & How Could You End Up Liable To Pay Back More Than £20,000 In Rent To Your Tenants!

Rent Repayment Orders & the Renters' Reform Bill: Why Self-Managing Landlords in Hailsham Are at Risk

As the government continues to strengthen tenant rights and rental sector regulation, landlords across Hailsham, Eastbourne, Polegate, Stonecorss and surrounding areas are increasingly exposed to legal and financial risks—especially those choosing to self-manage. One of the most serious threats? Rent Repayment Orders (RROs).

With the upcoming changes outlined in the Renters' Reform Bill, landlords who are not fully compliant could now face repaying up to two years’ worth of rent. Here's what you need to know.

What Is a Rent Repayment Order?

A Rent Repayment Order (RRO) is a legal mechanism that allows tenants (or local councils) to reclaim rent from a landlord who has breached certain housing laws. Previously, RROs were typically limited to offences such as renting out an unlicensed HMO (House in Multiple Occupation), unlawful eviction, or harassment.

With the Renters’ Reform Bill strengthening tenant protections, the scope of RROs is expected to broaden further, and enforcement will be more stringent.

How the Renters' Reform Bill Changes the Game

Under the proposed reforms:

• RROs could apply in a wider range of compliance breaches, including failures related to licensing, safety certificates, and illegal eviction practices.
• Tenants may find it easier to make a claim directly, without relying on local authority involvement.
• The penalty for landlords could be more severe, with rent repayments of up to 24 months (2 years) in serious or repeated offences.

If you self-manage your property and miss even one key legal requirement—such as failing to serve a valid How to Rent guide, not protecting a deposit correctly, or missing a gas safety renewal—you could unknowingly open the door to a costly RRO claim.

The Hidden Risks of Self-Managing

While managing your own rental property may seem cost-effective, the reality is starkly different in today’s regulatory environment:

• Compliance laws are complex and frequently changing.
• A single oversight could lead to hefty financial penalties or even a Rent Repayment Order.
• Without expert guidance, many landlords aren’t even aware they’re in breach—until it's too late.

Real Consequences for Landlords

Imagine renting out a property in Hailsham or Eastbourne and discovering, after a routine tenant dispute, that your property lacked a required licence. Even if the error was unintentional, you could be ordered to repay up to 2 years’ rent to the tenant—an amount that could easily exceed £20,000.

That’s not just a minor setback. It could devastate your rental income and put your entire portfolio at risk.

How Bates & Co Lettings Protects You

At Bates & Co Lettings, we specialise in keeping landlords fully compliant, so you don’t have to worry about falling foul of the latest legislation.

Here’s how we safeguard you:

• Full legal compliance with all current and emerging landlord responsibilities.
• Regular checks and updates in line with the Renters' Reform Bill.
• Access to our Guaranteed Rent Scheme – ensuring income stability and peace of mind.
• Expertise in handling licensing, safety certification, and tenant relations correctly and professionally.

Whether you have one property or a growing portfolio, we make sure your investment is protected.

Don’t Risk an RRO – Let Us Handle the Legal Process

In a tightening legal landscape, self-management is no longer the safe or profitable option it once seemed. The cost of a mistake could be catastrophic—but it’s entirely avoidable with the right letting partner.

Contact Bates & Co Lettings today for a free compliance health check or to find out how we can help you stay protected, profitable, and stress-free.

Based in Hailsham – Serving Eastbourne, Polegate, Stonecross and surrounding areas.

Call us on 01323 844 845 or Email Lettings@batesandco.co.uk to book your free consultation.

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