Conflicts are never welcome. They not only affect productivity, but also give rise to numerous secondary problems. Yet, they are unavoidable in many cases. In fact, surprisingly conflicts are quite common between a landlord of commercial property and a tenant. A landlord and a tenant might run into conflict for multiple reasons. It might be serious issues like eviction, rent irregularity, subletting etc. or smaller concerns like noise, cleanliness, damages etc. Whatever the reason, conflicts can take very little time to escalate into legal disputes.
A legal dispute is seldom worth the hassle, especially in the case of landlord-tenant disagreements. It is always a good idea to resolve theses problems with negotiations out of the court. This can be done through transparent dialogue or mediation by a reliable third party. Several property management services take up the role of mediator and help the parties to reach a suitable compromise.
Here are five reasons why landlord-tenant disputes should be settled out of court:
Legal proceedings are always accompanied with a large unwanted costs. The fee of the lawyer, the expense of the legal tools and notices, the opportunity costs of court dates and other time consuming activities etc. might even exceed the amount of money at stake in the primary dispute. A settlement, on the other hand, always tries to ensure a win-win situation for both the parties.
Legal disputes can be extremely time consuming. Both parties generally take their time finding suitable attorneys; and once the case starts, the subsequent appeals and re-appeal from both sides can prolong the case interminably. A settlement keeps the clock from just ticking away precious time.
Needless to say, a legal dispute is never peaceful. Visits to the courtroom are not particularly enjoyable. It can be a source of added mental stress to both the landlord and the tenant at the cost of their health. A non-court settlement helps both parties stay stress free.
4. Professional relationships
Business is all about relationships within the industry. A legal dispute has the potential to ruin several professional relationships. Which is why a non-judicial settlement is the best way to keep professional relationships from souring in the long run. Moreover, a negotiation sends a positive message within the industry and helps people look upon you more favorably.
A legal dispute scars the records of both the tenant and the landlord. Who wins the case is immaterial; the tenant might find it difficult to get a good property for rent. Similarly the commercial property for lease might gain a reputation and miss out on good tenants because of it. A settlement nullifies this possibility and ensures that both parties can move on from the dispute with the least consequences.
The best way to prevent legal disputes is to ensure a detailed lease contract incorporating all the clauses and define all areas clearly. It is also the duty of the commercial real estate management to make sure that both parties have understood the clauses well, thereby, reducing the chances of misunderstandings in the future. Indeed, a healthy landlord-tenant relationship not only benefits both but also goes a long way to enhancing the value of the property.