When a tenant refuses to pay rent, it may be best to pursue dispute resolution outside of court. This is the most rational and cost-effective course of action. The cost of filing for eviction in civil court can run anywhere from $3,500 to ten thousand dollars. This doesn’t account for the damage that bad reviews can do to the reputation of a property rental business. Fortunately, there are alternatives to civil court that can help you avoid these costs.
Arbitration is another method of resolving disputes. Unlike litigation, arbitration is binding on both parties and can be used to resolve a variety of issues. A landlord and tenant can agree on the duration of the agreement and the rental payments, but not on the responsibility of the tenant for renovations caused by a pandemic. In this case, the arbitrator can rule on this, allowing the landlord or tenant to claim reimbursement for past expenses.
Besides mediation, arbitration can also be used to resolve disputes that are contentious. This means that the parties can still execute other agreements. They may agree on the rental amount and term, but disagree on the responsibility for repairs caused by a pandemic. A mediator will decide who is responsible for the renovations. If the arbitrator finds that the landlord is responsible for the renovations, he can also order reimbursement for the tenant’s expenses that were incurred.
Even if a dispute cannot be resolved through negotiations, mediation is the best option. The residential tenancies board (RTB) has trained mediators specializing in property disputes. This method is a great option if the parties are unable to settle the dispute through negotiation. While it is expensive, it is more cost-effective than litigation. The RTB’s services are free and are an excellent alternative for settling a dispute with a tenant.
Mediation can be extremely beneficial for both landlords and tenants. A trained mediator can help both parties identify the issues and reach an agreement that is fair to them both. The mediator can also negotiate a schedule for rent payment if the tenant is behind in paying rent. By implementing a schedule of payments, the landlord can also be rewarded for forbearance through a favorable percentage rent formula. In addition, a mediation can also be helpful for resolving disputes that have escalated to court.
When disputing with a tenant, mediation is a great solution. Mediation is a neutral third party who helps the parties come to an agreement. In many cases, a mediator will work with both parties to reach an agreement. In this way, both parties benefit from the mediation process. They won’t have to hire landlord and tenant lawyer in Chicago and will not lose money. In the end, they will be able to get their property rental back to normal.