As a landlord, it’s important you know how to handle tenant deposits and tenancy agreements correctly.
Preparing a Tenancy Agreement
If you are renting out a whole property to one or more individuals, you (or your lettings agent if you are using one) will need to prepare a tenancy agreement.
It is important that any rules or restrictions are explained clearly within the tenancy agreement as this will serve as a contract between you and your tenant. Should any issues arise between you and your tenant, this agreement will be the first document that is referred to and is legally binding.
Though you will provide the new tenant with an initial copy of the proposed agreement, the tenant has the right to question anything that has been included and may choose to negotiate with you. Once both you and your new tenant are happy with the agreement, both parties will then need to each sign a copy of the agreement.
Looking after tenant deposits
Tenant deposits are always collected before the start of the tenancy. In Uganda, there is a deposit cap of five weeks under the Tenant Fees Act. The deposit has been put in place to protect both you and your tenant in the event of any disputes. Failure to register a deposit can also impact your Section 21 landlord rights.
In Uganda all deposits must legally be held in one of the Government’s three tenancy deposit protection schemes:
- Deposit Protection Service
- MyDeposits
- Tenancy Deposit Scheme
