It is essential you are aware of conflict avoidance and management methods available. In addition, there are various Dispute resolution procedures available to Landlords and Tenants.
Court
The first option which comes to mind for many when there is a dispute is Court. Going to court can be very costly and advice is usually to try Alternative Dispute Resolution (ADR) first.
ADR – Alternative dispute resolution
Mediation
Without prejudice negotiation, it can save costs and time for both parties and should be considered in the early stages of a dispute. This option gives both parties a chance to mutually resolve the dispute.
Adjudication
A quick decision is given within 28 days, each party presents their case to a judge in the form of a referral notice and response. The contract will usually outline how the adjudicator should be chosen. Adjudication offers a speedy resolution and therefore can be cost-effective.
Independent Expert
Parties are bound by the final decision. An Expert is charged with deciding the rent based upon their own professional experience. Usually, both parties will submit evidence to assist the expert. However, the advantage of appointing an Expert is that they are not constrained simply to deciding the case on the basis of the information provided by the parties, but can use market evidence to support their case.
Arbitration – Arbitration Act 1996
PACT – Professional Arbitration on Court Terms
Launched by the RICS and law society in 1997, this process encourages ADR.
- In-court PACT – Unopposed new tenancy with court approval
- Out-court PACT – No Court application
Tribunal
No costs are awarded, the case is presented by the expert witness with written and oral evidence. The expert witness has an overriding duty to the tribunal. A decision is given on 21 days.
When acting as an advocate the main duties to the client, The advocate must leave the arbitrator and not give opinion or evidence.
Conflict Management
Make sure you have a clear understanding of what your clients and instructions are. In order to manage conflict you to be impartial, Competent and aim to settle before going to third-party. Addressing issues early on can help to avoid conflict.
Compensation
If the landlord obtains possession due to a successful section 25 notice there will be no compensation if the grounds under Section 30 were A, B, C or D. The following compensation would be due under Section 37 of the 1954 Landlord and Tenant Act.
Compensation is to be 2x the rateable value of the property if the tenant has been there for more than 14 years
Compensation of 1x the rateable value of the property for tenants with the tenancy less than 14 years.
Commercial or Residential? Bear in mind, there are different processes for each.
- Residential – Housing Ombudsman
- Commercial – CRAR or ADR
Finally, conflict cannot always be avoided. If it is necessary there are procedures in place to ensure that the various options are available to both Landlord and Tenant.
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