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. 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. A tenancy agreement is a contract between a landlord and a tenant that defines the terms of their tenancy agreement. A landlord cannot increase the rent to more than 10% per year. Then, it must pass the 90-day increase on to tenants. If the tenancy agreement is fixed, the landlord cannot increase the rent until the fixed term expires, unless the rental agreement provides for the rent. Yes, but it depends on the length of the lease. If the lease is longer than one month, the lessor cannot charge more than three months in advance and the lease is less than one month, no more than two weeks in advance.
What steps does your client (“KYC”) need to take before making a lease? 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. One of the most important provisions is that landlords and tenants must sign leases of more than 500,000 rentals with clear terms of sale.