An owner letter template for unlawful residential premises risk
While v Moffitt concerns a question that may have significant practical and financial consequences for the rental sector: when premises are found to be unlawful for residential use, should rent ordinarily be refunded in full or can the fact that the tenant received the benefit of accommodation justify a reduced refund as a “special circumstance” under section 78A of the Residential Tenancies Act?
The eventual Court of Appeal decision will likely clarify how s78A is applied, how narrowly “special circumstances” should be approached, and the extent of potential rent-refund exposure where premises are “unlawful residential premises”.
A sensible property management agency knows this is not the time to sit on your hands nor speculate on how the Court will rule. The question to ask now is: are we comfortable continuing to market and manage this property without being satisfied that it can lawfully be used as a home?
This owner letter template gives you a practical way to put that question to the owner - clearly, professionally and on the record. It invites confirmation of lawful residential status, requests the documents that support it, and makes clear that uncertainty around a property’s status is a business risk worth resolving, not filing away.
It does not assume the property is unlawful or predict the outcome in While v Moffitt. It gives you a clear way to ask the right questions, obtain the relevant information and decide whether further investigation is needed. More importantly, it shows owners that you are not waiting for a tenant complaint, Tribunal claim or financial shock to take an interest. You are actively protecting their asset, identifying risk early and helping prevent avoidable exposure. That is proactive property management and a value owners can see.