UGANDA, Kampala | Real Muloodi News | Parliament finally passed the Landlord and Tenants Bill 2021 on Tuesday, after amending certain clauses in the third reading of bills.
The Landlord & Tenants Bill 2021 now proposes:
- 30 days notice for eviction
- Landlords’ right to re-enter to recover rent
- 60 days notice before rent increment, not exceeding 10% annually
- Currency of rental transactions shall be Uganda Shillings
- A mandatory Tenancy Agreement between Tenant & Landlord
30 Days Notice for Eviction
Parliament has granted landlords powers to evict tenants who fail to meet their rent obligations after 30 days notice.
Landlords’ Right to Re-Enter to Recover Rent
The Bill also permits the landlords to access the tenants’ premises and take possession of their property to recover accumulated rent arrears, on the condition that the landlord issues a notice to the tenants who default on rental payments.
“Provided that where the default shall continue for a period of more than 30 days, the landlord shall be entitled to re-enter the premises and take possession thereof, in the presence of the area local council officials and the Police, without prejudice to the right to recover the rent arrears,” the bill reads in part.
The new law also imposes penalties for landlords who are found liable of unlawfully evicting their tenants. Moving forward, such landlords will be required to compensate a tenant three months equivalent of rent dues.
60 Days Notice Before Rent Increment, Not Exceeding 10% Annually
The new law also places a restriction on landlords incrementing rent charges more than 10 per cent annually.
Furthermore, the law requires the landlord to issue a 60 days’ notice prior to increasing any rent charges.
“Increment of the rent should not exceed 10 per cent of the rent remitted at the time when landlord considers to revise the rent charges,” the bill states.
Currency of rental transactions shall be Uganda Shillings
The House also passed a provision that the currency of transaction between landlord and tenant shall be Uganda Shillings. This therefore resolves the contention that was previously between landlords and tenants as the former demanded that their clients remit rent in dollars.
The Vice Chairperson of the Committee on Physical Infrastructure, Hon Robert Kasolo who presented the report on the bill, said that the Shilling has continuously depreciated against the dollar, which places undue burden on tenants.
However, the Bill does allow for the tenant and landlord to enter into a written agreement on paying an amount equivalent in dollars.
A Mandatory Tenancy Agreement Between Tenant & Landlord
Hon Robert Kasolo said that the Bill makes it mandatory for the landlord and tenant to enter a tenancy agreement before occupying a premise.
“The Bill has now made it mandatory that you have to make a tenancy agreement. Therefore, there will always be agreements in any transactions that involve using somebody’s premises,” Hon Kasolo said.
The tenancy agreement is meant to clearly stipulate the exact rent charges to be remitted, and how utility costs such as electricity, and waste disposal would be settled, thereby minimising the likelihood of conflict between landlords and their clients.
The bill intends to regulate the relationship between landlords and tenants, to reform and consolidate the law relating to letting of premises, to provide for the responsibilities of landlords and tenants in respect to the letting of premises.
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