Service charge disputes – can you afford to ignore them?
An unresolved dispute, no matter how minor, has the potential to seriously affect the operation and reputation of a Landlord.
It may delay or affect the ability to sell the property, as it cannot be truly “ready for sale” if service charge disputes exist, or historic service charge reconciliations have not been completed.
Tenants withholding money can lead to cash flow problems for landlords.
Landlords reputations can be irreparably damaged.
Most successful businesses understand the value of good service and landlords should adopt an equally proactive stance when dealing with disputes.
Speed in conflict resolution enhances confidence of stakeholders, ensures accurate property valuations and promotes loyalty from tenants.
Due to outsourced property management some landlords are simply unaware of the dispute until it has caused problems.
Agents ignoring complaints or dragging the matter out ultimately risk their clients reputation and bank balance so its the landlords responsibility to ensure prompt resolution of disputes by requiring ADR or linking strict service charge performance measures to management fees. The benefits of not ignoring disputes are surely worth it.