Attention HMO landlords
Rent repayment orders: what Liverpool HMO landlords need to know
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I am an HMO owner myself — so I know what I’m talking about
See two of my HMOs below.
What our landlords are saying
“Noel HMO management has freed us from day to day operations so we can focus on finding more properties.”
Olimpo Garcia
“Now I have peace of mind when I think about my HMOs — Noel’s agency has everything under control. If I have inspections from the council I know everything is ok. I can breathe.”
David Baracaldo
What our tenants are saying
A rent repayment order lets a tenant — or the council — reclaim rent you have already received and spent. It is the enforcement mechanism most landlords have never heard of and the one with the largest single financial consequence.
What a rent repayment order is
It is an order requiring a landlord to repay rent that has already been paid. For offences committed on or after 1 May 2026 the maximum is two years' rent: on an HMO producing £3,000 a month, that is a £72,000 exposure — considerably more than most fines. The tenants can apply for one themselves, and so can the local authority, and the First-tier Tribunal decides the amount.
This is national law in England, not a Liverpool-only council rule. Different rules apply to offences committed before 1 May 2026: the maximum is one year's rent, and the tenant has one year to apply rather than two. Check the dates of the offence against the current GOV.UK guidance.
It does not require anybody to have been harmed. Operating a property that should have been licensed and was not is enough on its own.
How landlords end up exposed
Rarely by deliberate avoidance. Far more often by not realising the property needed a licence at all — a fourth tenant moves in, a household splits, or the council designates a new selective licensing area around a property that never needed one before.
That is why the licensing position is worth re-checking against the address rather than remembering what was true when you bought it.
Common questions
What is a rent repayment order?
An order requiring a landlord in England to repay rent already received. For offences committed on or after 1 May 2026 it can cover up to two years' rent; for earlier offences the limit is one year. Tenants can apply for one themselves, and so can the local authority. It is national law, not a Liverpool-only council rule, it is separate from any fine or prosecution, and it is usually the larger number.
How much rent can a tenant reclaim?
For offences committed on or after 1 May 2026, up to two years' worth of the rent paid — on a property producing £3,000 a month that is a £72,000 exposure. For offences committed before 1 May 2026, the maximum is one year's rent. The First-tier Tribunal decides the actual award, and where the landlord has already been convicted or fined for the same offence it must award the maximum unless there are exceptional circumstances. It applies to rent you have already received and in all likelihood already spent.
Can a rent repayment order be made if nobody was harmed?
Yes. The usual trigger is operating a property that required a licence without having one. No injury, complaint or disrepair is needed — the absence of the licence is the offence.
How do I make sure I am not exposed?
Check the licensing position against the specific address, not against what was true when you bought it. Occupancy changes and council designations both move, and either can pull a property into licensing without anybody telling you. If it needs a licence, apply before letting rather than after.
Licensing designations and inspection intervals vary by council and change over time. Confirm the position for your specific address with the local authority.
Checked against GOV.UK — Rent Repayment Orders: guidance for tenants. Last reviewed 6 October 2026.
I know how difficult it is to run an HMO
Let me share a secret with you: I manage my own HMOs because I have yet to find an agency I can trust to keep them compliant with all the necessary checks.
I take a hands-on approach because I have learned from experience — working with the local council, dealing with issues such as tenant evictions, and more. You name it, I’ve faced it.
I know that HMOs are challenging to manage. But throughout my journey I have developed systems to stay organised and make sure I never overlook any important action required to keep these valuable assets in optimal condition.
I’ve encountered rogue agencies and individuals who want to “earn without making an effort”, leaving landlords overwhelmed by the problems those mediocre agencies create.
As an HMO landlord I understand your needs: peace of mind to enjoy your life while your HMOs generate the cash flow that allows you to do so. Let’s have a conversation if you need someone to manage your HMOs.
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