Getting into a dispute with a tenant is a stressful situation. Ideally, you want to avoid any sort of dispute from arising in the first place. But unfortunately, this cannot always happen. If a dispute arises, you should have tools to solve it.
This means having alternatives to litigation, too. While this is your best option in some cases, you may have better options in other cases.
Arbitration and its benefits
FINRA takes a look at mediation and arbitration, which act as alternatives to litigation. As mentioned, litigation is sometimes the best option. However, it is costly and time-consuming. On top of that, it almost always leaves relationships between conflicting parties destroyed.
Instead, you could consider trying arbitration first. This method holds many similarities with litigation. However, you do not need to go through an extensive court battle. It costs less money, too. You do not take your case to a judge. Instead, an arbitrator will examine it and hand down a ruling. From there, you must abide by the ruling, which will settle matters of your dispute.
Mediation and who it works best for
But if you and the opposing party are on decent terms, you can consider mediation instead. Mediation involves the use of a neutral third party, known as a mediator. They listen to everyone present arguments and facilitate discussion. They may step in to offer advice or opinions. They ensure everyone says what they want to say and deescalate any tense situations. However, they cannot make a legally binding decision. The final call is up to you and the other parties.
Depending on the nature of your dispute, any of these options may work for you. Consider contacting a legal expert to see which could hold the most benefit.