Should You Try Arbitration in the Case of Conflict?

Many organizations that offer mediation also conduct arbitration if the parties cannot reach an agreement. Almost any dispute with a tenant or party that can be litigated can be arbitrated. With arbitration, you can get a relatively quick and inexpensive solution to a dispute without going to court. The arbitrator is a neutral third party that has the power to hear the dispute and make a final decision. In binding arbitration, you agree in advance in writing to submit to arbitration and to be bound by the arbitrator's decision. In non-binding arbitration, neither party is bound by the arbitrator's decision.

What if the tenant doesn't reform, despite your reminders to remedy the situation? If you want to get the tenant out, you certainly have grounds for terminating. But in a way, you'll have to start over by delivering the tenant a formal termination notice that meets your state's law.

In a dispute between a landlord and a tenant, mediation is usually informal. The mediator will commonly let everyone sit down and give opinions on their issues, even emotional ones. This often calms people down and leads to a quick compromise. If this will not work, however, the mediator may talk to each person consecutively to try and to determine each person's bottom line. Then, shuttling back and forth, the mediator leads the parties to an acceptable solution. At some point, everyone has to get back together to sign off on the final decision.