Effects of Ground Rent Scandals

Scandals have consequences. This is the same case as with any ground rent scandal. Many people both the tenant and the landlord enter into lease contracts without considering the consequences of rent defaults of any other conflicts that can arise during the course of the contract.

How Scandals Affects the Landlord

Unsolved and prolonged rent scandals can greatly affect the landlord in different ways. Some of which include:

  • Losses: when a tenant fails to pay the agreed rent on a piece of and the landlord is most likely to suffer losses. This is because the tenant will keep using the land with no rent.
  • Unplanned expenditure: solving a ground rent scandal may at times involves hiring a lawyer or the necessary authorities in order to try to get the rent paid. This translates to the landlord spending money on acquiring these services.
  • Lack of trust: landlords who have been let down by previous tenants tend to lose trust when it comes to leasing out the land again. Such landlord draw very strict contracts to other tenants making it hard to lease out the land.
How Scandals Affects the Tenant

Tenants also get affected by rent scandals. Conflicts arising from rent issues can lead to:

  • Loss property: defaulting rent can cause a tenant to lose any property they have on the rented piece of land. This is because the landlord can legally choose to auction the property in order to get the owed money.
  • Loss of reputation: when rent scandals are reported to the relevant authorities, a tenant can find themselves behind bars or incurring huge penalties. This can translate to them having a criminal record.

Rented land scandals cause a lot of business to close down and this affects not only the profits but can also lead to loss of jobs for the employees.