Tenants are likely to go after every plausible target when tougher rent repayment orders take effect later this year, a solicitor has warned.

Robin Stewart, of Anthony Gold, predicts that when so-called superior landlords and company directors are included with the immediate landlord, tenants will bring the claim against everyone they can, particularly in cases of rent-to-rent agreements.

“That’s a big problem if you’re a director of a bigger business acting as a landlord,” he said.

“In reality, they will go after the owner of the property because that’s easier,” says Stewart.

Rent repayment orders

“For bigger businesses where directors are not making a profit, they will have to think very carefully about how they are protected and what indemnities and insurance they need.”

Where a rent repayment order is brought against both the immediate and superior landlord in a rent-to-rent agreement, they will be held jointly liable.

This is regardless of whether one is guilty and the other simply didn’t understand their obligation, he explained.

Along with harder and harsher rent repayment orders, there will also be more situations where tenants can apply.

They currently have 12 months after the offence in which to make an application - which will increase to 24 months - while the bill will require landlords to pay the maximum amount for repeat offences and the maximum award will double from 12 to 24 months’ rent.

Misusing a possession ground

New offences under the rent repayment order system include landlords misusing a possession ground, and a breach of restriction on letting or marketing a property, such as landlords who serve an eviction notice saying they will move in or sell the property but then re-let it within three months.

Stewart predicts that there will be more incentive for tenants to stay put in an unlicensed HMO to get a windfall later.

He added: “The position for landlords is that this is no time for complacency or leaving your agents to get on with it unsupervised.”

Stewart was speaking as part of Landlord Law’s conference on the Renters’ Rights Bill.

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