Tenant Residential Claim Settlements

Owning rental property is not without its fair share of having to contend with a variety of tenant claims, ranging from discrimination to the property being inhabitable. Although, there may be no complaints from other tenants and a majority of them may be satisfied with their rented accommodation, a single dis-satisfied tenant can wreak havoc with his / her complaint.

If a tenant comes to you with a claim, it is best to adopt a friendly, though firm and businesslike manner. If the claim is untrue, you will have every opportunity to prove it so, as well, there are other ways to settle tenant claims without having to go to court.

However, the best way landlords can protect themselves from bogus claims is to maintain good records. Strong documentation regarding how incidents if any were handled, a written record of yours or tenant actions could prove invaluable, if a landlord finds himself / herself involved in a lawsuit, especially against a problem tenant.

At the very minimum, every landlord should maintain the following records:

• Keep a file on each of your tenants with their written rental applications, lease agreements, and lease addendums, if any. A record of all these documents can prove critical in a landlord / tenant lawsuit.
• Put down in writing any problems you may have with tenants, including the steps taken to resolve them. Each time a tenant breaches the lease agreement terms, document the incident. Anything, from something as simple as a late rent payment or as involved as intentional damage to your property should be put down in writing. A landlord’s record of events and his / her responses will come in handy, if a tenant’s version of events differs from yours. For example, if a tenant claims you never fixed the leaky faucet / shower / bath-tub, he / she complained about, you should have a record of each call, including the repair bill to prove your case.

With all records in place, a landlord can easily settle the claim, after taking necessary steps to do so.

First of all, attempts should be made to resolve the dispute amicably. If the claim proves to be a simple misunderstanding, ill feelings and expensive litigation can be avoided by simply discussing the problem with the tenant. As a number of cases have proved, a problem tenant could just be trying to see how far they can push the envelope. Recorded proof of your having acted fairly and legally may cause them to back down.

In case of a housing discrimination claim, on record rental applications and your reasons for denying the application can prove useful. In most cases, complete record keeping can cause a denied applicant to stop their claim at this point.

If, trying to resolve the claim on your own fails, the second step should be to go in for professional mediation. This means presenting both sides of the case to an impartial third party (the mediator). After hearing both sides of the story, the mediator will offer potential solutions. Often, a third party is all it takes to defuse hostile situations.

If mediation fails as well, binding arbitration should be your next step. What this means is an arbiters decision will be binding, and both parties will be asked to desist in any attempts for further action. Similar to mediation, this process is often the final step in settling a claim.

If a landlord wishes to allow for binding arbitration, a clause regarding the same should be inserted in the rental agreement, stating it will be used to solve any tenant / landlord disputes. Written records of all actions taken to resolve tenant claims permit a landlord to go in for binding arbitration, improving his / her chances of coming out on top.

However, remember the state law may impact the enforceability of arbitration provisions. Cities with rent control ordinances, such as San Francisco, certain rules and regulations have to be followed. Failure to comply with these can result in serious consequences requiring you to hire a seasoned landlord / tenant lawyer to represent you in tenant claims cases.

To avoid problems with tenants, selecting them carefully will ensure they remain with you for many years to come. Further, getting relevant information on rental application forms assists you screen prospective tenants, tenants who will not only respect and maintain your property, but limit property damage to only wear and tear, as well. For help in suitable tenant selection, visit www.e-renter.com for tenant screening and background check services, the best and only way to prevent expensive litigation, penalty charges or property damage.