As a property owner, manager, or agency, dealing with disputes is an inevitable part of the job. However, the way you handle these disputes can make a significant difference in maintaining positive relationships with tenants, preserving property value, and ensuring all your property management operations run as smoothly as possible
This article will explore common property disputes and provide practical strategies for mitigating issues before they escalate and navigating conflicts without disrupting tenants and occupants. The focus will be on preventing disputes from escalating while keeping properties secure, well-managed, properly maintained, and comfortable.
Understanding common property disputes
Whether you’re managing a portfolio as an agent, working as a building manager or concierge, or overseeing some serviced apartments, disputes with occupants do arise. According to the National Residential Landlords Association (NRLA), the leading cause of tenancy disputes is cleaning followed by damage to fixtures and fittings with disagreements over who is responsible for repairs and maintenance.
Late or missed rent payments are among the most common disputes between landlords and tenants. These can stem from financial difficulties, misunderstandings about payment terms, or occasionally, deliberate non-payment. Renters might also challenge unfair rent rises through local rent assessment committees. If they do challenge rises and a disagreement ensues, an expert witness report might be required to provide a formal rental valuation that can be referred to if the issue goes to court.
Breaching property rules
Other common types of property disputes include gardening, interior/exterior decoration as well as rent arrears. In multi-occupancy buildings, noise complaints are a frequent source of tension, not only between tenants and landlords but also among neighbouring tenants. Disputes can occur when tenants breach lease terms, such as unauthorised pets, subletting without permission, or property alterations. The return of security deposits at the end of a tenancy often leads to disagreements.
For leasehold disputes, the dispute process is typically governed by specific legislation and might be handled by local authorities or at specialist tribunals. Meanwhile, for financial penalties, rent repayment orders, and improvement notices. Appeals against these can often be made to the First-tier Tribunal (Property Chamber). Disputes about licences for houses in multiple occupations are dealt with by local authorities, with appeals possible to higher tribunals.
Keeping informed on laws and regulations
To resolve property-related issues, a good place to look for advice is the UK Government website. Property laws and regulations can vary significantly according to where you’re based in the UK. However, staying well informed about what to do and how the law or local councils can help is important for managing properties effectively and avoiding legal disputes.
There are some useful online resources that you can review to keep updated about what’s going on in your local area as well as any changes to tenant’s rights if they change after the General Election, for example. You can also look out for industry talks and online forums to stay informed on best practices and legal updates.
Communicating clearly from the start
Establishing open and clear communication channels from the beginning of any tenancy is always recommended. This includes providing a comprehensive introduction pack with all relevant information about the property, local area, and emergency contacts. It's essential to clearly explain rental terms, including payment procedures, safety concerns, maintenance responsibilities, and house rules.
Building positive relationships with tenants can go a long way in preventing disputes and fostering a healthy relationship. With that in mind, being responsive to tenant concerns and feedback will be appreciated. Offering multiple ways for tenants to contact you or your management team, such as by phone, email, and online portals, can also help maintain open lines of communication. By setting clear expectations and maintaining open lines of communication, you can prevent many misunderstandings that often lead to disputes.
Conducting regular maintenance and checks
Conducting regular property inspections can help identify and address issues before they escalate into disputes. With your occupants’ safety and privacy of utmost importance, it's important to schedule inspections at reasonable intervals, respecting tenant privacy and providing adequate notice. Use these opportunities to check for maintenance issues and ensure the property is well maintained inside and out. Document the condition of the property with photos and written reports, and address any concerns promptly and professionally.
Implementing a streamlined system for tenants to report maintenance issues can help manage this process effectively. Prioritise urgent repairs to prevent further damage and maintain tenant safety. Keep tenants informed about the progress of repairs and expected completion dates. Using qualified professionals for all maintenance work ensures quality and compliance with regulations.
Dealing openly with bills and finances
To avoid disputes related to rent and security deposits, it's important to clearly outline all fees and charges in any rental agreement. Provide itemised receipts for all payments received and maintain detailed records of all financial transactions. Be transparent about how security deposits are held and the conditions for their return. Consider using a third-party deposit protection scheme for added transparency and trust.
A well-drafted lease agreement can prevent many disputes by clearly defining the rights and responsibilities of both parties. Include specific clauses addressing common issues such as pets, subletting, and property alterations. Clearly outline the process for rent increases and lease renewals. Specify the procedures for ending the tenancy and returning the security deposit. Having the agreement reviewed by a legal professional ensures compliance with local laws and regulations.
Therefore, having a fair and efficient dispute resolution process in place can help manage conflicts effectively. Establish a clear procedure for tenants to raise concerns or complaints. Respond to all complaints promptly and professionally, and document all communication related to disputes.
Seeking professional assistance
Sometimes, despite your best efforts, disputes may escalate beyond your ability to manage them effectively. In these cases, don't hesitate to seek professional help. If you’re unable to reach an agreement, you might need to resort to mediation services for more certain disagreements. Likewise, if a dispute is unresolved, a property law solicitor might need to be called upon to tackle complex legal issues.
A professional property management company or advice from experts if disputes become frequent or overwhelming. Engage the services of a professional mediator for particularly challenging conflicts. In essence, managing property disputes smoothly requires a proactive approach, clear communication, and a commitment to fairness and transparency. When conflicts do arise, having established procedures in place is key as is the willingness to bring in professional help.
Ultimately, effective dispute management not only minimises stress and financial loss but also contributes to a more satisfying experience for both property managers and tenants alike. In addition, with management assistance you can help to avoid disputes and minimise problems before they turn into issues that spark complaints.
The key to successful property management lies in preventing disputes before and handling any conflicts that do occur with professionalism, and a focus on mutually-beneficial resolutions.