How do you handle a dispute with a tenant?
Many tenant disputes with a landlord occur because of a breakdown in communication between landlord and tenant. There can be misunderstandings and misremembering of important rental policies and practices that can cause disputes over rents, deposits, repairs and maintenance, tenant privacy, and violations of lease terms and conditions.
Disputes are stressful, disruptive, and time consuming. The best way to handle a dispute is to avoid it by making sure the tenant understands the important rental policies and practices and what is expected from him during the tenancy. This is best done by reviewing lease terms and conditions during the new tenant move-in orientation and through ongoing tenant communications by various media such as tenant newsletters, reminder texts, or postings on tenant portals.
Your first step is to understand the situation by talking with your tenant to determine the nature and extent of the issue. You should keep an open mind and actively listen to the tenant’s side of the story. What does the tenant want? If you can determine what motivates your tenant, you may be able to reach agreement and settlement on the issue. Talking through the issue with the tenant will help you determine if it is a simple case of misunderstanding or if there is a larger issue involved that may require negotiation and settlement.
Review your lease agreement for relevant clauses regarding lease violations, warnings and notices, and remedies for resolution of defaults including legal actions that may be taken. A discussion of the appropriate lease clauses with the tenant may resolve the issue.
If you are unsuccessful in your negotiation and settlement talks, you may want to consider mediation. A mediator is an independent, neutral third party trained to help facilitate communication. The goal of mediation is to help parties work out their own solution to disputes. A mediator does not have authority to bind either landlord or tenant to an agreement. Either party is free to proceed with legal action if no compromise can be reached. Studies have shown however that those who agree to mediate their differences are more likely to be satisfied with the resolution that those who proceeded directly to court.
Also check your lease regarding language specifying that any disputes under the contract are to be settled by binding arbitration. You may have incorporated such language in your customized lease agreement. If you are using a generic rental agreement you may want to read it thoroughly for such language and act accordingly.
Arbitration is another non-judicial method of resolving disputes. An arbitrator is a neutral third party who reviews the case evidence and makes a final decision. Unlike mediation, the arbitrator has the authority to bind the parties to an enforceable decision. If the arbitration decision involves a money award and the losing party does not pay as required, the money award can be converted to a court judgment.
If a settlement is reached, it is important to document all details including signed written acknowledgment of the offer and acceptance by each party.
Alternatively, if the situation warrants it, you have the option to file a lawsuit against the tenant. Small claims court procedures are relatively simple and most landlords can easily represent themselves in court. However, it is usually advisable to be represented by an attorney if the tenant is using an attorney.
There is another consideration that could arise in landlord tenant disputes. If the tenant has exercised a legal right such as a complaint to a government agency, building or housing agency regarding code violations for health or safety, or has organized or become a member of a tenants’ union organization, any action taken by the landlord against the tenant is or is presumed to be retaliatory, which is a violation of state law. Retaliatory landlord action may take the form of raising the rent, reducing services to the tenant, or threatening to bring legal action for possession of the unit (eviction). Some states have an automatic presumption timeframe, ranging from 90 days to one year from the time of the tenant’s legal activity, during which a landlord’s action would be considered retaliatory.
However it may be that if the landlord can prove his action for possession is due to the tenant being in arrears for rent or that code violations are the tenant’s fault due to lack of reasonable care of the property, presumptive retaliation may not be applicable. To help avoid charges of retaliation you must accurately document the interactions you have with the tenant (e.g., repairs, complaints, or inspections), the type of action taken, and the date and time received/resolved.