How tenancy agreements shield landlords from losses

Some landlords discourage others from investing in rentals. They argue that this business is fraught with problems, yet it has a low return on investment.  However, to some people, rentals can be viable if you manage them well.

For example, Rose Sanyu, a landlord in Kisasi, Kampala has mastered the art of profiting from this business. 

She learnt the hard way when tenants disappeared with arrears.

To mitigate defaulters, Sanyu advises landlords to ensure that tenants sign the tenancy agreement and be strict on monitoring. They should read and understand the terms and conditions. 

On her side, a tenant pays a security deposit which is refundable at the end of the tenancy but on condition that the house doesn’t need any renovations. 

Also, rent is paid two months in advance. A reminder comes before the two months elapse and if the tenant doesn’t comply, they are asked to leave.  The eviction conditions are also clear.

Joseph Mubiru, another landlord in Nansana in Wakiso district echoes Sanyu’s keenness on the tenancy agreement saying that some tenants can be difficult to deal with. They can choose to damage the house or gang up against you if you attempt to increase rent.

It gets worse with hygiene and sanitation. They will dump diapers and rubbish in the pit latrine while others throw pads and pieces of cloth in the toilets and they expect you to pay the plumber when pipes get blocked. 

“One time a tenant locked his room and disappeared for four months. I reported to the local council and we broke the lock only to find it empty,” he says. 

The tenant had shifted and left curtains in the windows to disguise but before that, he had three months arrears. In total, he owed the landlord seven months.

Another tenant engaged Mubiru in a cat and rat game. He would leave before 5:00am before his landlord woke up and return past midnight when he was asleep.

“I chased that man for three weeks to pay sh600, 000 rent for four months. Little did I know he kept sneaking out his belongings. He also left an empty room,” he says.