Can mid-tenancy mediation help resolve rent arrears?
NRLA partner TDS Resolution share a recent rent arrears case study, and how their team could help solve the matter.
As a landlord, ensuring a consistent rental income is crucial for maintaining a healthy property portfolio. However, encountering rent arrears can be a difficult situation to know how to navigate, especially in the midst of the current cost of living crisis.
In this blog post, we'll delve into a real-life rent arrears case study and how it was solved by TDS Resolution.
TDS Resolution, in partnership with the NRLA, is a mediation and conciliation service for mid-tenancy disputes.
The free service aims to help landlords and tenants agree on rent repayment plans to avoid tenants being evicted.
It also helps landlords demonstrate that they have complied with the Pre-Action Protocol relating to proceedings before Court, but more importantly, helps both landlords and tenants to agree on rent arrears repayment plans.
Case Study: How TDS Mediation helped resolve rent arrears and restarted payments
In this mediation case study from the Tenancy Deposit Scheme, the landlord asked TDS Resolution to mediate on a matter of rent arrears. The tenant accepted the invitation to mediation, and we began the conciliation process.
The dispute
The tenant had not paid rent for several months. The landlord had a mortgage to pay, and the lack of rent was causing them a lot of stress and worry, but the landlord did not wish to start lengthy possession proceedings and hoped to keep the tenancy in place.
The tenant had withheld rent as they believed the landlord had breached their legal obligations with regards to the property and the tenancy. The tenant felt this issue had caused them to have unnecessarily high bills in respect of certain aspects of the property. As a result, they felt the landlord should offset this cost against rent owed by way of compensation.
The landlord remedied the issue once the problem was brought to their attention and felt that, as the issue with the property was now resolved, rent should be paid, including the arrears.
The mediation
Through TDS Resolution, the parties were able to air their grievances, explain their concerns and discuss options going forward in a neutral setting with our impartial mediation. By giving each a platform to explain and listen, the landlord and tenant were able to understand each perspective better.
This process resulted in the landlord offering the tenant a proposal with regards to the arrears, to include an amount of compensation for the tenant. The tenant accepted this proposal on their behalf. The tenant, in return, agreed to resume normal rental payments.
The resolution
The dispute was mutually resolved, enabling the parties to draw a line under their grievances. The tenant, having been compensated, agreed to restart usual rental payments, which enabled normal landlord and tenant relations to resume.
Communication is often all that’s required to resolve a situation like this case. Frequently, both parties want the tenancy to continue but high emotions and a breakdown in communication can prevent that from happening.
The team at TDS Resolution carry out over 20,000 tenancy deposit dispute resolutions each year and are skilled at resolving disputes between landlords and tenants. If you need impartial and confidential help in resolving tenancy issues including rent arrears, repair, entry rights, breach of tenancy terms, contact us here.
Webinar “Meet the Mediator” Q&A
Join the Tenancy Deposit Scheme for Session 2 of our popular mediation webinar series on Thursday 7th September between 1-1.45pm, where we present a special "Meet the Mediator" session.
This webinar will shed light on the mediation process and its value to landlords and agents, especially in the face of the current cost of living crisis. You’ll have the opportunity to ask Sara Hesp, our Lead TDS Adjudicator and a highly skilled Mediator for our TDS Resolution and Redress Services, all your pressing questions. You can submit questions beforehand or live on the day.
“Excellent communication and knowledge of her subject were among the things your lead mediator did well in this webinar. I would unquestionably accept her judgement if I were in the dispute position and heard the content of her presentation. Highly rated!” Mediation webinar attendee.
Not with the Tenancy Deposit Scheme?
Deposit protection with the Tenancy Deposit Scheme not only provides protection for the deposit but also helps resolve any disputes that may arise at the end of the tenancy, and free mediation with TDS Resolution for any mid-tenancy disputes, such as rent arrears or breach of contract.
By joining the Tenancy Deposit Scheme, you'll unlock the ultimate toolkit with templates, tools, and our comprehensive deposit protection management dash-board.
Signing up is a breeze, plus NRLA members enjoy a special discount on TDS In-sured.
Please note that some resources are exclusively accessible for landlords who use the free custodial deposit protection scheme (TDS Custodial Scheme) or the insured deposit protection scheme (TDS Insured Scheme).
