“I’ll see you in court!” – surely there is a better way?
Mike Morgan of NRLA partner the Property Redress Scheme Tenancy Mediation Service explains more about the role of mediation in resolving conflicts that may arise during a tenancy, drawing on two case studies to illustrate the benefits of mediation.
Most tenancies end amicably, with the tenant handing back the keys and agreeing with the landlord or agent on any costs that need to be met. But a percentage end up in dispute over how the property has been left.
Mediation is an interactive way of sorting out disputes between landlords and tenants, with the help of a professional third person (an independent mediator) who won't take sides. Agents need to be aware of the service too – in some cases, agents instruct the scheme and act on behalf of their landlord customer. In others, agents signpost their landlords to the scheme to instruct the scheme direct.
The independent mediator helps both parties to work towards a negotiated settlement, if one is possible. It is a flexible and voluntary method of dispute resolution that is completely confidential. The mediator will set out alternative solutions to help the parties to reach agreement.
Mediation case studies
Here are some case studies showing how mediation has been able to help with problems during the course of a tenancy.
Rising rent arrears
Alison’s tenant was getting increasingly behind on his rent and the situation was getting worse. She could have started eviction proceedings and chased the rent arrears through the courts – but this can often lead to landlords writing off the rent arrears as they become desperate to get their property back to remarket or sell. Instead, she informed her tenant of her intention to involve the Property Redress Scheme tenancy mediation service to come to a solution.
The tenant had stopped answering emails and calls. Sometimes this is to be expected because the tenant feels that we are on the landlord’s side, as they are the ones who instructed us. But the truth is, we work with all parties because the landlord can only get their rent arrears back if the arrangement works for the tenant too.
Thanks to our persistence and understanding the tenant realised this and opened up about his personal and financial difficulties before agreeing to a plan that he could afford. This was all achieved without Alison losing a good rapport with a decent tenant. The arrears were paid off in three months and Alison still has a paying tenant in her property.
A change of circumstances
Graham’s tenant had contacted him following the loss of his job. He recognised that staying in the property was not realistic without sufficient income to pay both his rent and his arrears, and had some options for moving out quickly. Of course, a tenant in the property paying no rent was doing Graham no favours – but he was understandably reluctant to write off the arrears.
We were able to get hold of the tenant, who agreed to take part in mediation. The tenant explained that he’d been able to find a new job but was still afraid that with arrears he could not afford, his days were numbered.
We were able to agree a payment plan that Graham and his tenant were both happy with. The tenant would agree to leave the property now and pay half of the arrears over the next three months. While this left Graham with some unpaid rent, Graham recognised that this was a small price to pay compared to the time and cost of court proceedings.
Why use mediation?
Mediation is quick and effective - using legal proceedings takes time and money. The Property Redress Scheme tenancy mediation service can resolve the situation amicably:
- 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
Mediation gives you a chance to be heard - it gives both parties the chance to have their say through an impartial mediator. They won’t take sides and will help the parties explain what led to the dispute. This helps agree exactly what the problem is, saving time and avoiding misunderstandings.
Mediation is confidential - only the parties need to know the dispute was settled. If it wasn’t possible to reach an agreement, offers and concessions made to help to resolve the dispute are set aside and legal proceedings can be used.
Mediation can be a win win - mediation helps the parties find a solution they both agree to. Neither party should feel they have ‘lost’ and any agreement made is much more likely to work because both parties have bought into it.
Mediation helps relationships - sometimes parties need to continue a relationship together (such as landlord and tenant). Using mediation rather than court proceedings finds amicable solutions, helping parties to continue to work together in the future.
