10:23 AM, 26th April 2021, About 6 months ago 6
A theoretical question for a hypothetical tenant living in an HMO. Let’s assume the tenancy agreement was for one year, commencing on 1st January 2021 and ending on 31st December 2021.
The landlord’s HMO licence is a five-year licence and expires on 1st July 2021 (midway through the tenancy). I understand this would be an offence (having control of, or managing, an unlicensed house in multiple occupation) under s.72 of the Housing Act 2004.
If the tenants are aware of this, then being good citizens they would be empowered to apply for an RRO or liaise with their local authority to do so.
If the tenants report it to the landlord or the local authority straight away (say, before July 2021), and the landlord reapplies for their licence before 1st July, then no RRO would transpire as there would not have been an actual period of offence.
However, if the tenants delay reporting the offence until after the end of their tenancy, then there would be a period of offence of six months. This would lead to a considerable RRO (six months’ rent).
Surely from a tenant’s perspective, they are predisposed to delay notification of a potential offence for as long as possible, so as to maximise the potential value of the RRO, provided there are no adverse effects of living in an unlicensed HMO that have a material impact on the tenants in the interim.
Food for thought, unless I have misunderstood the concept of RROs?
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