Finding yourself in a dispute with your tenant can be stressful. Even if you have a high-quality Washington DC property management company by your side, litigating in court should be avoided if possible. So, how can you resolve conflict between you and a tenant? There are plenty of reasons to settle a rental home dispute out of court. Today, we’ll review how to avoid conflict and why you should resolve it outside the court system.
Contents of This Article:
- Why Should You Avoid Landlord-Tenant Disputes?
- How to Avoid a Rental Home Dispute
- 5 Reasons to Settle a Rental Home Dispute Out of Court
- Let BMG Help Settle Landlord-Tenant Disputes
Why Should You Avoid Landlord-Tenant Disputes?
As civil lawsuits hover near 300,000 per year in the United States, it is no wonder property owners fear landing in court opposite of their tenants. Time, energy, and, of course, money are always involved when facing a court appearance. And there is always the chance you will lose. In the case of a loss, you risk costly compensation judgments and a ruined reputation as a property manager.
Luckily, there are other ways to settle a rental home dispute outside of appearing in court.
Today, we will look at some of the best ways to avoid landing a rental home dispute. Additionally, we will look at five reasons you should make every attempt to settle your rental home dispute out of court should you find yourself dealing with some legal trouble.
How to Avoid a Rental Home Dispute
Disputes are bound to happen at some point when you are in the rental property business. Whether you self-manage your rental properties or enlist the help of professional property management, you will have to deal with tenant disputes regardless.
Luckily, according to AllBusiness, there are some proven ways to help prevent landlord-tenant disputes:
- Understand the Laws- When owning a rental property, it pays to understand the state and local laws regarding the rental property business. While you want to profit, you risk losing everything in a dispute.
- Keep Detailed Records of Any Dispute- Document everything if you have a dispute with your tenant. Sometimes, just showing your tenant this documentation can be enough to get the tenant to stop pursuing a legal dispute.
- Have a Meeting- This is especially helpful if you have a property management company helping you to manage your rental properties. Sitting down with an upset tenant can sometimes smooth a potential problem out quickly without involving the courts.
In the end, in addition to following the above advice, being proactive about possible disputes is one of the best things you and your property management company can do to avoid a day in court.
5 Reasons to Settle a Rental Home Dispute Out of Court
For those times when you just can’t avoid a rental home dispute, and you have to resolve a significant issue, you should try your hardest to avoid going before a judge. Here are some of the main reasons why.
- It’s Expensive
- Court Is Unpredictable
- It Takes a Long Time
- Court Is Stressful
- Trials Are Public Record
It’s Expensive
Everyone knows that going to court is expensive. The cost of an attorney, filing fees, and, ultimately, settlements can be very expensive. Whether you hire an attorney with a flat retention fee or charges by the hour, you will soon find yourself with thousands of dollars owed to the people representing you in court.
Some legal proceedings, such as an eviction, may take months to resolve. All the while, you will continue to pay your lawyer and any other related legal fees. All property owners want to avoid this, as should any tenant looking to get out of trouble with their landlord.
Don’t forget–even if you win your case, your lawyer will likely take a large percentage of any settlement you receive.
Therefore, in the interest of cost alone, sometimes it is best to try to settle a dispute outside of court so that neither party goes down financially. In the end, so long as you resolve the issue amicably, it won’t matter to either party where it was resolved.
Court Is Unpredictable
When you go to court, the judge sometimes awards the other party much more damages (a.k.a. money) than you or your attorney expected. On the other hand, you may lose when you thought you were a shoo-in for a win. Worse yet, the judge may exclude your key piece of evidence, your witnesses may not show, or you may find you are just up against a more experienced attorney. The truth is that you never know what you will be up against in court until you are already there. And by then, it is too late.
Unfortunately, you take these risks when you go to court to settle any dispute.
By settling outside of court, you remove the unpredictable nature from the equation. Each side presents what they will gladly settle for, and when an agreement is made, that’s it. Whatever was agreed upon is a done deal, and each party moves forward with their lives.
It Takes a Long Time
The court process is always slow, even for the simplest of cases. So many cases flow through the court system at one time, and only a certain amount of manpower is available to handle them all. Plus, certain legal procedures must be followed in a court case, which can lead to lengthy proceedings. These include finding an attorney, deposing each side, preparing interrogatories, assigning court dates that are often rescheduled multiple times, and more.
Time wasted in court settling a rental home dispute causes many problems for property owners, including the following.
- The more time spent in court, the more the attorney gets paid
- Additional proceedings add to the filing fees, and time it takes to officially file the paperwork
- If you are in court dealing with a significant rental home dispute, your property is likely vacant = a loss in income
- Your vacant home is at risk for vandalism, squatters, or damages
You always hope your case will settle in a few months or so, regardless of the major dispute. However, there is always a chance your case will slog through the system and take upwards of years to settle fully. This can damage your entire rental property business and is another reason to avoid going to court if possible.
Court Is Stressful
Court Is StressfulDealing with a rental home dispute that has escalated into a court case is very stressful. Before you know it, all of your private matters are being discussed openly in court amongst many people. You may have to take the stand and testify about uncomfortable situations, and your family and friends may even become involved.
Moreover, don’t forget the general worry that lingers when going through a court dispute. After all, you may lose your case and owe a lot of compensation to the other party, plus any fees you accumulate during the proceedings. This includes fees to your attorney plus any fees you might owe the opposing party (a.k.a. your tenant).
By settling outside of court, you know exactly the outcome and how much each party will owe because that’s the only way the issue will settle. More so, you will never agree to anything without knowing all the terms, lessening the angst that a court case can often cause.
Trials Are Public Record
If you face your tenant in a rental home dispute in court, every court proceeding will become a matter of public record. This means anyone, including future tenants interested in leasing from you, will have access to every last detail regarding the dispute. You can easily see how this may negatively affect your rental property business. In the end, unless a judge orders your case’s records sealed, your proceedings will be available for anyone in the public to read.
On the other hand, the involved parties control all settlements made outside of court. This means whatever you wish to remain a private matter, including the settlement amount, will stay private forever.
Let BMG Help Settle Landlord-Tenant Disputes
In the end, entertaining a rental home dispute is no light matter. Should a dispute end up in court, there are serious consequences for both parties. That’s why it is so important to try to settle a rental home dispute outside of court if possible.
If you own a rental property in the Washington, DC, area and worry about resolving a tenant dispute, contact Bay Management Group today. We will not only stand by your side during any legal dispute you may encounter, whether it settles outside of court or goes to trial, but we will also manage everything else property-related for you.
