Whichever side of the fence you find yourself on, whether on the landlord’s or tenant’s side, the real estate business is not a bed of roses. As a landlord, it will take time and money to develop your property to the level of it being desired by would-be tenants.

As a tenant, you must have enough money to pay your rent on time. Either way, there is work to do for both parties. I recently carried out a mini survey among landlords and tenants in Kampala, asking them whether they had formulated or signed a tenancy agreement and was surprised by what I found.

For landlord Moses Kaligidha, nothing was clear. He did not know how to formulate a tenancy agreement, especially what to include in it, so he decided to ignore it. Sooner than later, he found himself having to settle disputes with his tenants and whenever he ended up at the authorities’, the first thing they asked for was a written and signed document between him and his tenant, something that usually puzzled him.

“I wondered why everyone asked for that document. I don’t know what to include in it and what to leave out,” Kaligidah said, before revealing that he will engage a lawyer to help him draft one, so that he can use it to end the distresses with his tenants.

Experts say many landlords have ignored the importance of the tenancy agreement, but if they do not take it seriously, they are bound to get into trouble when their tenants raise a storm.

Experts define a tenancy agreement is a contract between a renter and a property owner or manager. It is signed along with the agreed upon initial payments and typically clears the way for a tenant to take occupancy of a rental property.

The tenancy agreement gives both the occupant and the property owner or manager a mutual understanding of the terms of the occupancy. It shows the date, amount of money and terms and conditions which the tenant must adhere to as he or she resides in the house. Ladarius Rwakafuzi, a human rights’ lawyer, states that after the document has been signed, it becomes a legally binding agreement.

The contents

Ronald Musoke, a landlord, notes that while signing the tenancy agreement, there must be a section that clearly shows the date of occupancy and states the date when the next rent payment should be made. This helps in tracking and knowing when rent should be expected and what should be done in case it doesn’t come on time.

Musoke notes that some landlords opt to fine tenants who do not pay rent on time, but if this is not clearly stated in the agreement, it becomes challenging for the tenant to accept to pay that charge.

Amount of money tenant pays for the house, how and when

Musoke says a tenancy agreement should clearly state the amount of money a tenant is expected to pay per month and when. It could be at either the beginning of a month or at the end.

Such things should be made clear to both parties for easy planning and also to avoid the two conflicting over rent. The mode of payment should also be stated as it could be through the bank, mobile money or giving the landlord or property manager his cash.

Definition of tenant/landlord roles

“Conflicts between landlords and tenants over issues like fixing broken pipes, toilet or clearing the dumping area and repainting the house often arise,” Rwakafuzi says.

He notes that to avoid such conflicts, it’s important that landlords clearly state their roles in the tenancy agreement so that the tenant gets to know what the landlord does and does not want. 

Time frame when landlord intends to increase rent

Rwakafuzi says landlords randomly increase rent, which destabilises tenants. “Some decide to stay, but usually struggle to pay the high rental fees that are increased from time to time. However, if the landlord includes a time frame when he might increase his or her rental charges, it guides the renter to plan ahead of time and decide whether to stay, even when the rent has been increased or not,” he says.

Why it should be signed

Muzamiru Kibedi, a lawyer, notes that most people take this document for granted and that many do not sign it, but they make a big mistake. He says signing this agreement helps you know your limits as a tenant and the limits of the landlord, which ensures peaceful living. Since this document states when the landlord should come to the premises, it helps the tenant to have some privacy on the property, since after the tenant occupying and paying his/her fees, they technically own the property and the landlord must come around only when it is inevitable. He adds that it is important to sign it because it protects the two parties against taking advantage of each other. Everyone knows what to do when, where and why.