Recovering rent arrears shouldn't mean losing a tenant
Mike Morgan, legal division manager at the Property Redress Scheme highlights a recent case involving a landlord with a tenant in rent arrears, and how mediation helped to resolve the situation amicably.
A very well-known colleague of mine has a saying, “good tenants don’t turn bad overnight”. At the Property Redress Scheme tenancy mediation service, we understand what this statement really means – tenants aren’t ‘good’ or ‘bad’, they may simply have had a change in circumstances and not know where to turn.
In my last article I spoke about Alison, a landlord who managed to recover 100 per cent of her unpaid rent using our mediation service. But this time, I wanted to look at why mediation was so effective for her: because it considered the needs of the tenant as well.
Rising rent arrears
Alison’s tenant was getting increasingly behind on his rent and the situation was getting worse. Does this sound familiar? It is common that when people get into debt, they are left unsure and worried about the options that are available to them.
At this stage Alison had a couple of options. She could have started eviction proceedings and chased the rent arrears through the courts.
This can often lead to landlords writing off the rent arrears as they become desperate to get their property back so they can either remarket it or sell it. Instead, she informed her tenant of her intention to involve the Property Redress Scheme tenancy mediation service to come to a solution.
We're here to help everyone
After initially agreeing to mediation and the presentation of a payment plan, the tenant stopped answering our 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.
The tenant realised this after failing to keep up with an initial plan. Thanks to our persistence and understanding, he finally 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.
Financial difficulties
Like many others, Alison’s tenant had been adversely affected by the pandemic and was experiencing financial difficulties. He didn’t know what to do and hoped that his difficulties would just go away. What both the landlord and tenant needed was an impartial third party to help them, and that is exactly what we did.
Many landlords have been extremely accommodating to their tenants during the pandemic, offering payment holidays, reduced rent, and other help. But a lot of landlords are feeling the financial strain too. Some landlords don’t want to lose the rapport they have built up with their tenant but cannot afford to do nothing. Evicting your tenant and chasing the rent arrears through the court will almost certainly irreversibly damage your relationship, but mediation can resolve the situation amicably.
Why should you use mediation?
- 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
Call 0203 907 1857 to find out more or start your mediation.
