How One Landlord Avoided Eviction and Saved $9,143.00 with HousingShield

John and Sarah had been married for 5 years, renting the same duplex unit for 3 of those. They moved in after being in a one bedroom apartment for the first 2 years of their marriage, deciding they were ready to start building their family, and they would need more space, and a yard for the dog they planned to adopt. The dog, named Maverick, was first in the order of operations for obvious reasons.

Unfortunately, they have experienced a string of hiccups on their way to starting their family. John had a somewhat extended bout of unemployment after a layoff, and they had to spend some time working with a fertility specialist. These challenges put serious strain on their young marriage, and they have spent several months working with a counselor. Despite all the hard work, they were unable to repair their relationship, and decided to divorce. Both were devastated, and to make matters worse, neither John nor Sarah could afford the rent for their town home alone. Sarah didn’t want to leave. After a venting call with her sister, Claire, the two realized one potential upside: Claire could possibly move in. The only problem: a 3 month gap between John’s departure, and Claire’s arrival.

This put Sarah in quite a predicament. She couldn't pay the entirety of her rent, and afford her other bills. These weren't luxury items or discretionary items; it was things like gas and food. She wondered if there was a way should could make partial rent payments, but a quick check of her lease shut that down: incomplete payments would result in an eviction.

As a last resort, she reached out to her landlord, who had been open and helpful in past interactions, and learned that her forward-thinking landlord secured help for situations like these. Actually, she’d been paying into this protection without even realizing. Her landlord was a HousingShield subscriber, and reached out to Mosaic for assistance. He received a callback within 24 hours, and within 72 hours they had a video call scheduled for emergency mediation. Together, they were able to collaborate on potential solutions like how they might keep Sarah in her town home until Claire arrives, and others. If they didn’t come out with an agreement, he’d call his attorney – but first, he'd see if they can work it out without the added expense.

Their mediator helped all parties to explore where their interests align, and what each of them might do if they can’t make a deal. Using HousingShield’s Cost Calculator, the landlord realized the high price of evicting and turning over the unit, and how much could be saved through an agreement, even if there are some associated costs. If they could do better than the equivalent of 3 months of lost rent plus the legal fees and make-ready expenses, the landlord was for it (with some assurances, naturally). $2100/month in rent plus the other fees really adds up, and the landlord knew it would be easy to get tenant applicants, but harder to get those that were qualified, something that made his stomach turn.

Additionally, the landlord was able to let John off his portion of the lease, without a derogatory mark to his rental history, and without a fine for breaking his lease. The landlord was only willing to do this after seeing the full solution outlined in a clear and enforceable Mediated Settlement Agreement (MSA), making it easy to sign after all the mechanics were worked out. Thankfully Sarah and John maintained a civil relationship, and in light of the landlord agreeing to let him off the lease, he was glad to contribute a portion of the would-be fees for breaking the lease to help Sarah – after all, it would still hurt him less than breaking the lease, and would help someone he still deeply cared for. Mediators are professionals at shaping creative, out-of-the-box solutions because they aren’t distraught with decisions that might lose them their housing. With their help, parties regained the clarity they need to see new solutions.

In Sarah’s case, she and John identified a solution that satisfied the landlord's needs: she was short for a few months until Claire moved in, but less so with John’s help. For the landlord, it was essentially a short-term loan with built-in collateral, a fair interest rate for the trouble, but more important than anything, a much better solution than the alternative of losing a tenant who would eventually stay problem-free for another 5 years.

This is the benefit of HousingShield and early intervention. Without the help of a professional mediator, this situation could have been a complete loss for both parties. Because the solution wasn’t initially obvious, they would have assumed it wasn’t there; because fear and defensiveness usually rule these conversations, they would not have engaged in the collaborative discussions that helped them both. Instead, Sarah, John, and Claire were able to make smooth transitions in a difficult situation. HousingShield’s rapid response guarantee prevented this situation from escalating into a full blown dispute and court battle, while Sarah and her landlord were able to work as a team to keep Sarah in her house, during an emotionally fraught time of life where she desperately needed some stability.

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