Property Management

1. Tenancy Agreements and Requirements

The Landlord and Tenant Act, 2022, is a significant piece of legislation in Uganda that regulates the relationship between landlords and tenants, reforms and consolidates the law o...

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The Landlord and Tenant Act, 2022, is a significant piece of legislation in Uganda that regulates the relationship between landlords and tenants, reforms and consolidates the law on the renting of premises, and specifies the responsibilities of both parties. It repeals the older Rent Restrictions Act.

Here are some of the key provisions and highlights:

1. Tenancy Agreements and Requirements

  • Form of Agreement: Tenancy agreements can be in writing, by word of mouth, partly in writing/partly oral, or implied from the parties' conduct.
  • Enforceability: For a tenancy agreement with a value of UGX 500,000 or more (25 currency points), it must be in writing or in the form of a data message to be enforceable in court. Oral agreements of this value are generally not enforceable.
  • Identification: Landlords are mandated to obtain identification from the tenant (National ID, passport, etc.) before entering an agreement.
  • Rent Payment Currency: Rent obligations must be expressed and settled in Uganda Shillings (UGX), unless the parties mutually agree otherwise in the tenancy agreement.
  • Receipts: Landlords must issue a receipt for rent payments, immediately for in-person payments, or within five working days otherwise.

2. Rent and Payments

  • Advance Rent Limit: A landlord cannot require a tenant to pay more than three months' rent in advance for a tenancy of more than one month, or two weeks' rent for a tenancy of less than a month, unless the parties mutually agree otherwise.
  • Rent Increase Limit and Notice:<ul>A landlord generally cannot increase the rent at a rate of more than ten percent (10%) annually, unless mutually agreed in the agreement.
  • A landlord must give the tenant at least sixty (60) days' notice of a proposed rent increase.
  • Rent cannot be increased at intervals of less than twelve months.

3. Duties and Responsibilities

Party

Key Duties/Responsibilities

Landlord

- Keep the premises fit for human habitation (residential).

- Keep the premises maintained in good repair (excluding tenant-caused damage).

- Pay all taxes and rates imposed by law on the premises.

- Ensure the tenant has quiet possession and enjoyment.

- Not refuse to rent on grounds of sex, race, religion, disability, etc. (non-discrimination).

Tenant

- Pay rent on time.

- Pay for separately metered utilities (e.g., electricity, water) unless otherwise agreed.

- Use the premises only for the intended purposes and not for illegal activities or to cause a nuisance or interference.

- Keep the premises and fixtures clean and in good repair (reasonable maintenance).

- Not make alterations or install fixtures without the landlord's consent.

4. Access, Default, and Eviction

  • Landlord's Right to Enter: A landlord can enter the premises for inspection or repair only after giving the tenant at least twenty-four hours' notice (written, message, or word of mouth), unless it's an emergency.
  • Eviction for Rent Arrears:<ul>If a tenant fails to pay monthly rent, the landlord must issue a 30-day notice of eviction.
  • If the default continues for more than 30 days after the notice, the landlord is entitled to re-enter and repossess the premises.
  • The re-entry and repossession must be done in the presence of the Local Council (LC) and the Police.
  • The Act abolishes the remedy of distress for rent (seizing a tenant's property to recover arrears).

5. Termination of Tenancy

  • Notice Periods for Residential Tenancies:<ul>Weekly tenancy: 7 days' notice.
  • Monthly tenancy: 30 days' notice.
  • Year-to-year tenancy: 60 days' notice.

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