Prior to the execution of a rental agreement, the lessor is required to obtain a tenant`s foreign identity cards or identity cards and registration details or any other form of initiation in the case of a legal entity. This will improve data storage and reduce current tensions, where tenants disappear and leave huge rent obligations. The bill expressly authorizes the landlord to apply for a deposit, also known as a fee guarantee, provided it does not exceed one month`s rent. This is protection for landlords who, at the end of the lease, had to incur additional costs for repairs that would otherwise have been managed by tenants. The law prohibits the landlord from increasing the rent at a rate of more than 10% per year or a percentage that can be imposed by the minister in a legal instrument. The landlord is required to set a 90-day period for a proposed rent increase. In addition, a temporary rent landlord is prohibited from increasing the rent before the term of the period expires, unless the contract provides for an increase in rent before the term expires. A tenancy agreement is a contract between a landlord and a tenant that defines the terms of their tenancy agreement. It will solve the issue of informal agreements that have dominated the real estate sector for a long time. It should be noted, however, that the same bill, which aims to address the current problem of informal agreements, leaves a gap in maintaining oral and tacit agreements. A rental agreement may be implied in writing, by word of mouth, by a data message or by the behaviour of the parties. Under the new regulations, it is wise that with a consideration of more than 500,000 Shs (only 500,000 schillings), the lease must be enforceable in writing or in the form of a data message. For the accommodation, the rental contract can be terminated after 60 days of one-year notice until the annual rental agreement, 30 days` notice for a monthly rental agreement and 7 days notice for a weekly rental contract.
This will reduce arbitrary layoffs of landlords once they receive better offers from highly paid tenants. However, it appears that the commercial landlord is not able to remove a problematic tenant.