Rent Smart Wales - Penalties for not complying

Enforcement, Penalties And Restrictions

Breaching any of the several requirements under the Act is in the main a criminal offence and a licensing authority or local housing authority have powers of prosecution. Further, there are severe penalties and restrictions that also apply for breaches.

A tenancy will remain valid and enforceable even if any one of the several requirements under the Act are not complied with (except for rent which has been ordered to be stopped or repaid or the inability to serve a section 21 notice).

Fixed Penalty Notices

For the majority (but not all) of the offences, Rent Smart Wales or a local authority may offer the person who has allegedly committed one of the offences the opportunity of discharging any liability to conviction by payment of a fixed penalty.

If the person pays the fixed penalty within the period of 21 days, the person will not be convicted of the offence.

The amount of the fixed penalty will be either £150.00 or £250.00 depending on the offence.

Rent Repayment Or Rent Stopping Orders

Where a landlord carries out property management activities or a landlord appoints an unlicensed agent, Rent Smart Wales (or local housing authority) may make an application to the Residential Property Tribunal for a rent stopping order.

The person who is alleged to have committed the offence does not have to have been charged or convicted of an offence for a rent stopping order to be made.

The effect of a rent stopping order is to stop, for a period, any rent payable by a tenant. Legally the tenant will be considered to have paid this rent and no rent arrears claim could be made.

A rent repayment order works in a similar way but applies to periodic payments of rent that have already been paid to a person during a period when some breach of the legislation had occurred. In addition to Rent Smart Wales or a local authority applying for a rent repayment order, a tenant may also apply.

Section 21 Notice

No section 21 notice may be given if:

• the landlord is not registered, or
• the landlord is not licensed and the landlord has not appointed a person who is licensed to carry out all property management work in respect of the dwelling on the landlord’s behalf.

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