Problem Tenants? How Dispute Resolution Can Work For You

Most of the time having tenants is going to be a rewarding experience for all involved, however it is a sad fact that even with the most stringent vetting process, this is not the case all of the time.

Problem tenants not paying their rent on time, partially paying rent, not maintaining the property in a reasonable or hygienic state, blocking access for repairs to be made, or not adhering to other terms of the tenancy agreement can cause stress and anxiety.

It is important to remain calm in this situation and to understand that often tenants are unaware of the terms of the tenancy agreement, or the fact that it is a legal document that they agreed to comply with when they signed it.  A formal letter, or email, setting out the facts may be enough to resolve the issues.

However, if you have communicated calmly and politely to explain why behaviour is not appropriate, or breaches a tenancy agreement, and there are still no improvements, then the relationship with the tenant/s can break down.

Dispute Resolution is a next step to take to resolve issues with problem tenants.  A third party, not involved in the dispute, can clarify the situation from a legal perspective.

What is Dispute Resolution?

Dispute Resolution Services can involve mediation services, arbitration and litigation (going to court).  Below are brief descriptions of what each of these are and why/when to use them:

Mediation

It is always preferable to avoid costly court proceedings and a judge will often look favourably when alternative methods of resolution have been attempted before going to court.

Mediation has to take place with both parties consent and involves a neutral third party who helps reach an agreement that is acceptable to both parties.  If agreement can’t be reached through mediation then arbitration, or litigation, are next steps to resolve issues with problem tenants.

Arbitration

Many leases contain an “Arbitration” clause that specifies that if the landlord and tenant have a dispute, that the dispute will be referred to an “arbitrator”.  An arbitrator is an independent third party that examines the evidence and makes a legal decision (called an “award”), that is legally binding on both parties (unlike mediation).  You avoid going to Court but the dispute is dealt with by someone who has expertise in relevant matters. An arbitrator’s decision (“award”) can be enforced through the Courts if needs be.

Litigation

Litigation simply means that you are resolving issues in the court system.  It is far more costly and time consuming than mediation or arbitration.

If you are experiencing issues with problem tenants and would like to know the best way to proceed, or how our Dispute Resolution Services can help resolve the issues, simply give us a call to discuss, we will be pleased to help.

Useful Notes:

• Always have a Tenancy Agreement
• Keep records of times, dates, and communications with problem tenants
• Be calm and respectful in your communications with problem tenants
• Always have Landlord Insurance
• Deposit Disputes?  Receive free Deposit Dispute Resolution Support: https://www.gov.uk/tenancy-deposit-protection/disputes-and-problems
• Further information: National Landlords Association https://www.nrla.org.uk/