Harmonious relationships are always better than non-harmonious ones. This is as true in business as it is in life. It certainly applies to the relationship between landlords and tenants. Keeping a relationship harmonious requires having a process for settling disputes between the parties. This has strong relevance to the world of property investment, where disputes can arise over anything from guest visits to rent levels.
Preventing disputes using a tenancy agreement
A Tenancy agreement essentially sets out the ground rules for a tenancy. Effective tenancy agreements strike the right balance between detail and flexibility. The detail makes sure everybody knows where they stand on key points. The flexibility allows both landlords and tenants a reasonable amount of room to manoeuvre.
Given the nature and purpose of tenancy agreements, it usually makes sense to use them to steer off common problems between landlords and tenants. For example, they should cover the following points:
- when and how rent is to be paid
- acceptable noise levels and guest visits
- conditions for keeping pets and/or requesting to be permitted to keep a new pet
- expectations for the maintenance of the property, including the landlord’s access rights
- any requirements based on local authority regulations
A tenancy agreement should also set out the process for settling any disputes and what action will be taken if the tenants break the conditions of the agreement.
Ways to settle disputes with tenants
The options for setting disputes with tenants are largely the same as the options for settling other disputes. Ideally, disputes will be settled through direct communication between landlords and tenants. In a worst-case scenario, they will be settled by the courts.
In-between these two options, there are various alternative dispute resolution (ADR) methods. Of these, mediation is likely to be the most appropriate.
What is mediation?
Mediation is a voluntary and confidential method for resolving disputes. It is facilitated by an impartial third-party mediator. This process of mediation promotes communication and negotiation between landlords and tenants, empowering them to collaboratively reach a mutually agreeable resolution.
In mediation, the mediator creates a safe and structured environment for both parties to express their concerns, interests, and viewpoints. They help clarify misunderstandings, identify underlying issues, and explore potential solutions. The mediator remains impartial throughout the process, ensuring fairness and balance.
The role of the mediator is to facilitate effective communication and guide the parties toward a resolution. They employ active listening skills, ask clarifying questions, and encourage open dialogue. Mediators may also offer creative problem-solving techniques to help generate options for agreement.
Advantages of mediation in landlord-tenant disputes
The advantages of mediation in landlord-tenant disputes are much the same as the advantages of mediation in other types of disputes. Here are 5 key benefits:
Cost-effectiveness
Mediation is more cost-effective than formal legal proceedings as it avoids the need for extensive court fees, solicitors’ fees, and other associated costs.
Time-efficiency
Mediation also tends to make better use of the parties’ time. As the people involved have more control over the process, they can schedule mediation sessions at their convenience. These days, people can even participate in mediation remotely for even greater convenience.
This means that mediation can be completed in a matter of weeks or even days, whereas it can take months or even years just to get a date for a court hearing. What’s more, dates for court hearings are at much higher risk of having to be postponed for various reasons.
Confidentiality
The discussions and information shared during mediation are confidential, creating a safe and open environment for the parties to express their concerns. This confidentiality encourages honest communication and reduces the fear of information being used against either party in the future. Court hearings, by contrast, are generally made public. They are only kept private if there are compelling grounds for doing so.
Less bound by legal procedure
Any agreement reached should be legally enforceable. The parties must form a valid contract if any changes to a tenancy agreement that they’ve agreed on during mediation are to be legally binding, and any changes they’ve agreed on must comply with the law. For example, payment of prohibited tenants’ fees should not be agreed upon. However, the parties making the agreement do not have to operate under the constraints of legal (ie court) procedures.
Preserves the relationship between the parties
Unlike litigation via the courts, which often strains relationships and escalates animosity, mediation promotes cooperation and understanding. By actively involving the parties in finding a resolution, mediation helps to rebuild trust and maintain a positive working relationship. This is particularly beneficial in cases where the landlord and tenant have a long-term rental agreement or where either party is hopeful of ongoing collaboration.
Having a comprehensive tenancy agreement is key to avoiding disputes. You can use Rocket Lawyer’s templates to create yours. If a dispute does arise with a tenant, consider using mediation to resolve it and Ask a lawyer if you have any questions.
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