Post by High Priestess on Dec 29, 2017 6:35:16 GMT
Why it can be beneficial to put into your rental agreement a clause requiring binding arbitration to resolve disputes.
Primary reason: it means it's then not possible for the guest/renter to sue you. They have to use binding arbitration, and this means that they will have to pay to hire an arbitrator -- whereas if they want to sue you, if they find a lawyer to take the case on contingency, they won't have to pay anything up front. No risk or cost at all to sue someone if you find a lawyer to take the case on contingency, whereas there is an upfront cost to binding arbitration.
Also, as indicated in this thread, if you withhold a renter's security deposit and they say they will sue you in small claims court, they can't do that if you have a binding arbitration clause.
ask.metafilter.com/266740/Binding-arbitration
Primary reason: it means it's then not possible for the guest/renter to sue you. They have to use binding arbitration, and this means that they will have to pay to hire an arbitrator -- whereas if they want to sue you, if they find a lawyer to take the case on contingency, they won't have to pay anything up front. No risk or cost at all to sue someone if you find a lawyer to take the case on contingency, whereas there is an upfront cost to binding arbitration.
Also, as indicated in this thread, if you withhold a renter's security deposit and they say they will sue you in small claims court, they can't do that if you have a binding arbitration clause.
ask.metafilter.com/266740/Binding-arbitration