Back in the day – and I say “back in the day” because, really, with the way things have advanced, even a few years ago feels like another era – I’d block out a good hour or two of my day for mediation.

I’d have an actual calculator in hand, sitting at my desk, waiting for the office phone to ring. I haven’t seen or used one of those phones in at least four years. Why be tied to an office when the world is now attached to you wherever you go?

Pen and paper ready, I’d sometimes lock myself in the office so not to be distracted. Everyone knew when there was a mediation happening for rent arrears – and man, that was serious stuff! It felt like going into a mini war. You had to be prepared.

Fast forward to just two weeks ago – I took a mediation call for rent arrears while driving to another appointment. The mediator called me, then called the tenant, and before we even hung up from the three-way call, the order was already sitting in my inbox. Done and dusted.

The process of mediation and handling rent arrears is much easier now. Digital communication makes things faster and more efficient, and with the systems we use, we can pull up ledgers within seconds – there’s really no room for error.

Whilst there is advancement on some aspects, what’s still frustrating, though, is the time it takes to get to that point. And that’s why I prefer not to rely on mediation or court dates as my first option.

If there’s one person who knows the tenant’s situation and can work with them, it’s me as their property manager – or you, as their landlord. We have the relationship, and that’s worth tapping into when it comes to conflict resolution. Unpaid rent falls into this unpleasant category and has the potential to make or break a landlord.

• 20 December: Tenant missed rent. A reminder text was sent. A phone call was made. No answer.
• Day three of arrears: A 14-day notice to remedy was issued under Section 56 of the Residential Tenancies Act. No response.
• 30 December: We lodged an application to the Tenancy Tribunal. By then, the tenant was two weeks in arrears.
• 14 February: Mediation was eight weeks after our application and nine weeks in arrears. At $680 per week rent, that’s a lot of money building up. Even applying four weeks’ bond to the arrears, we’d still come up short.

We could have pursued termination under Section 55(1)(aa) once they were 21 days in arrears. But I don’t think my landlords’ insurers would be too impressed if we sat on our hands for that long. I have read some policies where I am expected to visit the property to make sure the tenant is still in place.

There is some good news, by the time mediation came around, the arrears were down to just $320 – instead of potentially over $6000.

That’s because we pursued the arrears and worked with the tenant outside of the Tribunal process, while still keeping the courts as our backup.

I later found out the tenant had gone overseas getting a tan and visiting family – no wonder I couldn’t get hold of them straight away. Otherwise, I would have taken advantage of FastTrack mediation. That’s where you come to an agreement with the tenant, and Tenancy Services simply puts it in an official order.

Even this process could use improvement. In another FastTrack mediation, where the tenant and I had already agreed to the terms of arrears, the mediator took what should have been a five-minute call and dragged it out to 15. She was walking on eggshells, over-explaining, and repeating herself multiple times.

How it could be better

More effective mediators would make the process better. Mediators should:

• trust the agreement and ledgers – if both parties are in agreement and understand the terms, the mediator should focus on documenting it clearly and swiftly – no need for lengthy explanations
• skip the over-explaining – less “walking on eggshells,” more professionalism and efficiency. A quick confirmation, a run-through of the key terms to ensure clarity, and then wrap it up
• quicker scheduling of mediation and hearing dates, with flexibility to contact tenants outside of standard working hours.

Some tenants are unable to take calls during business hours, and this can delay the process unnecessarily.

And again (because it can’t be said enough): the most important thing is having a good relationship with your tenants. Apply the law with respect and professionalism.

And for those feeling the weight of these challenges – get yourself a property manager.

For the rest of you, I’ll leave you on a happy note: there are positive signs on the horizon.

February showed some encouraging trends across the New Zealand property market, with increases in sales counts and more activity at auctions. While it’s been a tough climate for landlords recently, this could signal the start of renewed confidence and momentum for investors.

Let’s Rent is an award-winning property management company in Auckland dedicated to providing exceptional service for landlords, property investors and tenants. Founded on the principles of integrity, personalised service, and attention to detail, Let’s Rent stands out for its innovative approach to property management. letsrent.co.nz