You have complied with the terms of the lease, but something has gone wrong. Your tenant has stopped paying rent and isn't responding to your messages. Or maybe you're the tenant and your landlord refuses to return your security deposit for no reason. Now what?
The first thing that comes to many people's minds is "I'm going to sue," but is that really the best option? Going to court can be costly, time-consuming and exhausting. Are you willing to wait months (or years) for a solution?
Before you throw yourself into a grueling legal process, there are other options: negotiation, mediation, arbitration and other alternative dispute resolution methods. Here's how to resolve a rental dispute without lawyers and courts.
Imagine this situation: you have rented your apartment to a tenant who, at first, seemed reliable. But months go by, the payment doesn't arrive and the excuses pile up.
Or maybe you are the tenant and, at the end of the lease, your landlord finds "reasons" not to return your deposit.
You have two options:
1️⃣ Go to court: spend money on lawyers, wait months (or more) and assume the uncertainty of the outcome.
2️⃣ Opt for negotiation, mediation or arbitration: Find a quick, legal and effective solution without going to court.
If the second option sounds better, read on.
It's easy to get caught up in anger when you feel cheated. But before you act, ask yourself this question:
What is the real root of the problem?
🔹 If you're a landlord: is the tenant not paying because they have financial problems or are they simply avoiding their obligation? Is the contract clear about penalties for non-payment?
🔹 If you are a tenant: Does the landlord have legal grounds to hold the bond or is he just taking advantage of the situation? Have the terms of the contract been met?
It's very different to negotiate with someone who wants to pay but can't, to someone who deliberately avoids doing so. Understanding the reason for the dispute is key to resolving it.
Here's a fun fact: the first offer in a negotiation often determines the direction of the deal.
How can you use this to your advantage?
📌 If you're a landlord: Instead of demanding full payment right away, you could offer a payment plan with clear dates.
📌 If you are a tenant: Instead of threatening a complaint, you could propose a partial bond return agreement to avoid lengthy disputes.
Example of structured message for negotiation:
"I've noticed that we still haven't settled the payment issue. I want to avoid making this more complicated for both of us. How about finding an agreement that benefits both of us?"
A well-stated proposal reduces the other party's resistance and opens the door to a workable solution.
If after several attempts the other party is still unresponsive or unwilling to negotiate, it's time to apply some strategic pressure , but without breaking bridges.
🔹 If you are a landlord: You can remind the tenant that non-payment can result in legal action with additional interest. You can also mention that there are mediation options before going to court.
🔹 If you are a tenant: You can mention that, if an agreement is not reached, there are legal procedures that could force the landlord to return the deposit with penalties.
Key phrase to generate pressure without confrontation:
"I would like to resolve this in the best way possible and avoid legal action that can be wearing for both of us. How can we reach a fair agreement?"
What if after trying everything, the other party still refuses to negotiate?
This is where negotiation and arbitration come into play.
Negotiation allows both parties to exchange proposals in an organized manner and without the pressure of a direct confrontation. Through a specialized platform, they can define clear terms and reach a legally valid agreement.
Mediation is a process in which an impartial third party, the mediator, helps both parties to communicate and find a mutually beneficial solution. Unlike arbitration, the mediator does not impose a decision, but rather facilitates dialogue so that the parties can reach an agreement on their own. It is a flexible and less confrontational option, ideal for preserving business or personal relationships.
Arbitration is similar to a trial, but faster and more private: a specialized arbitrator evaluates the case and issues a binding, i.e., enforceable, decision.
In many countries, rental contracts include alternative dispute resolution clauses. If you don't have them in your lease, now is the time to start including them.
If you are facing a problem with your tenant or landlord, the question is not "do I want to solve it?", but "how do I want to solve it?",
✔️ Would you rather waste time and money on a lawsuit?
✔️ Or do you want a quick, practical and effective solution through negotiation or arbitration?
Before making a drastic decision, try negotiating strategically. A well-directed alternative dispute resolution can save you months of frustration and thousands of euros in legal costs.
And you, if you were in this situation, what would you do first?
Find out how the Arbitirum alternative dispute resolution platform works.
Instead of resorting to a long and costly trial, Arbitrium offers you a quick and effective solution. Through our platform, you can negotiate directly with your landlord or tenant to agree on payments. If they fail to reach an agreement, you can opt for impartial arbitration, obtaining a binding resolution without going through the courts.
🔹 Avoid unnecessary lawsuits. Reach an agreement with Arbitrium.