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Since May, the complexity of lettings compliance has increased. Landlords now face up to £7,000 in civil penalties for breaches of the Act and up to £40,000 and prosecution for offences. And the consequences aren’t just limited to financial damage. Non-compliance can also wreck a landlord’s reputation and it’s easier to slip up than you might think.

Failure to supply the information sheet

The government’s information sheet outlines the changes introduced by the RRA and should have been provided to all tenants by 31 May. But there are certain conditions to its provision that are easy to overlook. If the property is managed by an agent, for example, the agent must also provide the sheet, even if the landlord has already done so.

It must also be supplied in the correct manner, either printed out and posted or handed to the tenant or sent as a PDF attachment – not a link – by email.

Repeated non-compliance of RRA

Penalties of up to £7,000 can be imposed for a number of reasons under the RRA, from rental discrimination to rental bidding, both of which are forbidden under the new act. Other more serious breaches are offences, open to prosecution and a civil penalty that has increased from £30,000 to £40,000.

However, if initial breaches remain unresolved, penalties can multiply and become offences, with councils able to impose up to the £40,000 maximum. So even if the fault was minor initially, it can quickly escalate if it’s not resolved or is repeated.

Rent repayment orders

Rent repayment orders have also been strengthened under the RRA. They have been extended to superior landlords and company directors and will also apply to new offences in the act. Landlords who have previously been subject to enforcement action for an offence will be required to pay the maximum rent repayment order amount if they repeat the offence.

Most importantly, the maximum rent that a landlord could be ordered to pay has doubled, up from 12 months to 24. Meanwhile, the time in which a tenant or local authority can apply for a rent repayment order after the offence has also doubled to 24 months.

Process and paperwork failures

As witnessed with the way the Information Sheet must be provided, much of the RRA relies on strict adherence to the correct process, as well as accurate record keeping to document compliance. This ranges from deposit protection to repair requests. Failure to keep such records can jeopardise a landlord’s position during disputes.

Failing to meet Decent Homes Standards

Although it has yet to apply, another element of the Renters’ Right Act will be the introduction of the Decent Homes Standard, which will require landlords to ensure that rental properties are hazard-free and maintained to acceptable standards.

Tighter HMO licensing

Many councils are also tightening their HMO licensing, with many smaller properties previously not subject to an HMO licence now requiring one. This is in addition to breaches of HMO management, such as failing to comply with an improvement notice or contravening an overcrowding notice. Renting out an unlicensed HMO could result in an unlimited fine.

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