When a significant disagreement arises between a landlord and a tenant, the traditional path to resolution is the court system. However, litigation can be an incredibly slow, expensive, and adversarial process. To avoid this, many modern lease agreements now include clauses that require the parties to first attempt to resolve their disputes through alternative methods, primarily mediation and arbitration. These processes offer a more private, efficient, and often less confrontational way to settle conflicts.
Mediation is a voluntary and collaborative process. If a dispute arises, the landlord and tenant agree to sit down with a neutral third party, the mediator. The mediator’s role is not to make a decision or impose a solution. Instead, their job is to facilitate a structured conversation, help both sides understand the other’s perspective, and guide them towards finding their own mutually acceptable agreement. For example, in a dispute over a security deposit deduction, a mediator could help the parties negotiate a compromise on the repair costs. The entire process is confidential, and if no agreement is reached, the parties are still free to pursue their case in court.