Mike Morgan, Legal Division Manager at Hamilton Fraser discusses the ways in which mediation can help should you encounter difficulties with a long standing tenancy.
Pandemic and the lockdown have brought many challenges, but they have also shown how many landlords have had the best interests of their tenants in mind throughout such difficult times. It can be easy for some tenants to take advantage of that good nature – but using an independent mediator keeps tenants focused and landlords protected.
Valerie’s story
Valerie had a long-standing tenant who got into difficulty with their rent during lockdown. She first contacted the Property Redress Scheme tenancy mediation service for help last year. Valerie had a well-established and happy relationship with the tenant and wanted to help them out as far as she could. She was, understandably, nervous about making a bigger problem for herself further down the road.
When Valerie first contacted us, we were able to speak with the tenant to find out what their financial position was and what rent they could afford during lockdown. Valerie was happy to accept a small reduction in rent but for no more than a year. We agreed a payment plan with the tenant, who committed to pay £650 rather than £800 rent per month for that period of time. We also included an acknowledgement that landlord and tenant would review the payment of the shortfall at the end of that period.
Valerie contacted us again as the year passed to ask if she was able to use us again. The tenant was asking for more time at a reduced rent, whereas Valerie thought she had done enough to help. We were able to agree that if the tenant wanted to remain in the property, they needed to pay their normal monthly rent and start clearing the arrears. We were able to agree a payment plan that Valerie and the tenant were both happy with. The tenant committed to paying their normal monthly rent, plus extra each month which would clear the arrears in a little over six months – Valerie was able to recover £3,000 worth of rent.
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 members
Call 0203 907 1857 to find out more or start your mediation.