Insights and Opinions Mike Morgan 11/01/2022

Mediation can help beat the New Year blues

The month after Christmas is not just about feeling the ‘New Year’ blues – it’s also often about suffering the financial consequences of Christmas, an early pay day in December, and a rude awakening when the bills start arriving in January.

Tony’s story

Tony had tenants who had a new arrival to their family following lockdown and were understandably excited about baby’s first Christmas. But alarm bells rang when Tony only received half the rent due in December. After speaking to his tenants they explained that they had got a bit carried away with their Christmas spending, so Tony talked to them about catching-up on the rent in January. However January’s rent payment was not made at all, and Tony found that after this the tenants were difficult to get hold of.

When Tony contacted us, we were able to speak with the tenants to find out what their financial position was and what rent they could afford. They had been avoiding Tony because they thought that they would lose their home and weren’t aware that things like rent repayment plans were a possibility. Tony was happy to agree a payment plan with the tenants to pay an agreed amount each month on top of the normal monthly payment, clearing the arrears over the next four months. We documented this in an agreement, making it clear to the tenants that falling down on the payment plan meant that Tony could indeed look to recover possession of the property.

Both Tony and his tenants were keen to avoid a similar problem in the future. Realising that they could afford to overpay in some months, Tony and his tenants also said they’d speak about whether the tenants could do this before next Christmas to ‘flex’ their payments over the festive period.

How mediation can help

Using one of our mediators brings both common sense and expertise to find solutions that work for both landlords and tenants. Disputes can relate to rent arrears or other issues that have arisen during a tenancy. Landlords should consider using mediation to resolve issues with their tenants because:

  • It’s quick – we typically reach an agreement in 10 to 15 working days
  • It works – tenants work with us once they realise we’re not just on the landlord’s side
  • It saves you time, money and stress – we find fast, practical solutions without incurring expensive court proceedings. Our charges start from £200 plus VAT for NRLA landlord members

Call 0203 907 1857 to find out more or start your mediation.

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Mike Morgan

Mike Morgan

Legal Division Manager, Hamilton Fraser

As Hamilton Fraser’s Legal Division Manager, Mike leads the PRS tenancy mediation service, giving quick and cost-effective solutions to disputes, saving the time, cost and delay of court proceedings.

A qualified solicitor and previously the Tenancy Deposits Scheme’s Dispute Resolution Director for over 13 years, Mike is passionate about preventing disputes through access to the best advice and guidance, and also resolving them quickly and easily where problems do arise. He is a Qualified Adjudicator (ACIArb), and has a Professional Award in Ombudsman and Complaints Handling Practice (Queen Margaret University and Ombudsman Association).

See all articles by Mike Morgan