5 Mistakes Businesses Make by Ignoring FTIC Guidelines

Businesses in the property and tenancy industry must follow regulations to stay compliant. One key set of guidelines is the FTIC (Fair Tenancy Industry Committee), designed to ensure fairness in tenancy agreements. However, many businesses overlook these important rules, leading to costly mistakes. In this blog post, we’ll highlight five common mistakes businesses make when they ignore the FTIC Tenancy guidelines, and how to avoid them.

1. Lack of Transparent Rent Terms

A common mistake businesses make is not outlining rent terms clearly in contracts. FTIC guidelines emphasize transparency in rental agreements to avoid disputes. If rent increases, payment schedules, and penalties aren’t specified, businesses risk damaging relationships with tenants and facing legal issues.

How to Fix It:
Always ensure that rent terms are clear. Include payment dates, potential increases, and late fees. Regularly update your tenancy agreements to stay in line with the FTIC guidelines.

For more on FTIC’s guidelines, check out the FTIC Infographic for the Code of Conduct (CoC) covering September and October 2024.

2. Ignoring Tenant Rights and Responsibilities

The FTIC Tenancy guidelines protect both landlords and tenants. When businesses overlook tenant rights, they can face serious consequences. Tenants must know their rights, including maintenance requests, repairs, and eviction procedures. Similarly, landlords must fulfill their obligations.

How to Fix It:
Learn tenant rights and ensure contracts align with FTIC standards. Give tenants an information pack outlining their rights and responsibilities to prevent confusion and disputes.

3. Inconsistent Rent Increases

Many businesses apply rent increases arbitrarily, without following FTIC Tenancy guidelines. The FTIC stresses the importance of fairness when increasing rent. When businesses fail to provide proper notice or justification, it can lead to tenant dissatisfaction and legal problems.

How to Fix It:
Follow FTIC’s rules for rent increases. Provide tenants with sufficient notice and clear reasons for any rent changes. Keep increases in line with market trends and inflation.

4. Not Having a Clear Dispute Resolution Process

Ignoring the FTIC guidelines for dispute resolution often leads to escalation. Without a clear process, conflicts can spiral, causing financial and reputational damage. Businesses must have an official process to resolve disputes quickly and fairly.

How to Fix It:
Set up a formal dispute resolution process, as recommended by FTIC. This may include mediation or a structured complaint procedure. Addressing conflicts swiftly and fairly will reduce the risk of costly legal battles.

5. Ignoring Mediation in Dispute Resolution

Ignoring the FTIC guidelines for dispute resolution often leads to escalation. Without engaging in mediation, conflicts can spiral into lengthy, costly legal battles, damaging both your business reputation and finances. Mediation is an important step outlined in the FTIC guidelines to resolve disputes quickly and fairly before they escalate.

How to Fix It:
Encourage mediation as the first step in resolving disputes. Familiarize yourself with the FTIC mediation process to ensure you’re following the best practices. This can help prevent issues from escalating into expensive lawsuits and preserve relationships with tenants.

Stay updated on CCCS reports to keep track of best practices in dispute resolution​ Ministry of Trade and Industry.

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Conclusion: Why FTIC Guidelines Matter

Ignoring the FTIC Tenancy guidelines can lead to mistakes that harm your business. By following FTIC principles—such as transparent rent terms, respecting tenant rights, and resolving disputes fairly—you’ll build stronger landlord-tenant relationships. Compliance with these guidelines ensures long-term success and protects your business from legal issues.

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Join SG TUFF: The Best Way to Stay Informed and Compliant

At SG TUFF, we’re committed to helping businesses stay compliant with FTIC Tenancy guidelines. Our membership offers valuable resources, expert advice, and networking opportunities with other property and tenancy businesses.

Why Join SG TUFF?

• Exclusive Resources: Access up-to-date guides, templates, and best practices for FTIC compliance.
• Expert Support: Get tailored advice from industry professionals to navigate tenancy laws.
• Networking Opportunities: Connect with like-minded businesses to share experiences and strategies.

Join SG TUFF today and take your business to the next level. Sign up for a membership!