The value of alternative dispute resolution to landlords and tenants

Ending up in a dispute can be both daunting and stressful. The House of Commons reported that in 2018, the County Courts received around 2 million claims with circa 1.8 million of these claims being for money.

Disputes can often arise during a tenancy for a number of reasons including issues with the cleanliness of the property, or as a result of damage. Parties often negotiate at the end of the tenancy using the tenancy deposit paid by the tenant at the start of the tenancy. But what happens when a dispute arises mid-tenancy as the tenant is unable to pay the rent on time, or in full? Some tenants will inevitably face financial difficulties, and this has been highlighted by Covid-19 which has led to loss of jobs and reduced income which, in turn, has affected the ability of some tenants to pay their rent.

As a result of the pandemic, Courts have had to close and now face a backlog of cases meaning parties could be waiting several months before their case is heard. There is an alternative to Court though. Alternative dispute resolution (ADR) includes a wide range of resolution processes which allow parties to reach an agreement without the need to engage in the time-consuming Court process.

TDS Resolution launched in July 2020 and focuses on facilitating agreements between landlords and tenants for rent repayment plans. The Dispute Service Ltd, who set up TDS Resolution, also runs the Tenancy Deposit Scheme which deals with around 15,000 disputes per year through adjudication. The fee for making a claim to the County Court for a claim of up to £300.00 is £25.00, and the fee for a claim of £500.00 to £1,000.00 is £60.00. The majority of the disputes dealt with by Tenancy Deposit Scheme fall within this category meaning the ADR service provided is saving consumers between £375,000 and £900,000 per year, as well as delivering a quicker, fair outcome.

TDS Resolution aims to provide a similar service, offering landlords and tenants a quicker resolution to the rent arrears in the form of helping to broker a rent repayment plan acceptable to both parties. Not only does this provide a resolution to the matter at hand, but it also allows to the parties to hopefully continue with the tenancy without the need for any further action, or an eviction to be undertaken.

To find out more please visit www.tdsresolution.com or get started now using our interactive form below.

Author

Steve Harriott