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Covid-19 Commercial Rental Independent Evaluation Service

Business Rent Mediation Service

TENANTS - are you a commercial tenant finding it difficult to make your rent payments?

LANDLORDS - Do you have a commercial tenant who hasn’t been able to pay rent?

The rent moratorium is about to end, and the government is encouraging landlords and tenants to deal with these matters quickly and rationally.

The Government strongly encourages disputes over business rent arrears to be resolved by mediation.

Where mediation has been attempted and/or settlement has not been agreed, landlords and tenants will be required to use arbitration to finally resolve these disputes.

RICS can help you resolve these complex issues quickly and inexpensively through its tailored RICS Business Rent Mediation Service.

RICS Business Rent Mediation Service

• Conducted by an independent, skilled mediator who will help the landlord and tenant to agree a way forward
• Allows parties to resolve matters quickly, cheaply and effectively
• Creates the opportunity for a clear, balanced dialogue between landlord and tenant
• Is incisive and robust to Separate genuine issues from arguments with less relevance
• Is carried out by an RICS Mediator who has years of practical experienced in similar negotiations
• Control of the dispute remains with the landlord and tenant

What is Mediation?

RICS mediation is a robust negotiation process, facilitated by an independent and expert mediator. It allows the mediator to intervene and use their experience and sector expertise to analyse and test the proposals made by each party, helping them to reach a responsible, commercial agreement.

Benefits of RICS Mediation

✔ Is a cost-effective intervention proportionally matched to the size of the dispute

✔ Ensures that the final decision on how to proceed is kept within the control of the parties

✔ An insightful analysis of the tenant’s grounds for non-payment alongside the landlord's requirements

✔ An opportunity to engage external specialist advice to examine the proposals made and the documentation on which they are premised

How to appoint a Mediator

Complete an application to appoint an impartial mediator and submit it to drs@rics.org

The RICS mediator will be appointed within five days and will work with the parties to resolve the issues within 28 days. The Mediator will bring professional, real-world experience of dealing with similar negotiations to the mediation process. They will maintain a balance between the parties in negotiations, crystallise issues, and help parties agree the way forward.

Download the form

Pricing

RICS will not charge an administration fee to the parties. Instead, RICS will recover its administrative costs from the appointed arbitrator on the basis of a small percentage of their fee.

To provide an affordable and cost-effective service, each party will be responsible for the payment of their half share of the fees unless they agree otherwise, and the following rates will apply:

Properties where the annual passing rent is:

Guide duration of Mediation Session*

Hourly rate

less than £50,000

up to 4 hours

£150 + VAT

£50,001 - £150,000

6 hours

£250 + VAT

greater than £150,000

8 hours

by agreement

* If the mediation session is extended over the guide duration a set hourly rate will be agreed between the parties and the mediator.