Understanding the terms of a lease will save you from conflict with a property owner. Photo by Edgar R. Batte
Many people are increasingly picking interest in
property leases. However, few take the time to understand the
technicalities of a lease contract and thus leading to conflict between
property owners
and tenants. A lease is a legally binding contract between the owner (Landlord) and the occupier (Tenant) of premises.
Frank Mugalu, a property manager, says a lease sets out the rights and responsibilities of the parties. He explains how to obtain legal instructions before signing a new lease or agreeing to take over an existing lease.
and tenants. A lease is a legally binding contract between the owner (Landlord) and the occupier (Tenant) of premises.
Frank Mugalu, a property manager, says a lease sets out the rights and responsibilities of the parties. He explains how to obtain legal instructions before signing a new lease or agreeing to take over an existing lease.
Lease terms
Mugalu says you should be very vigilant on lease terms because it contains information on how the property is managed on behalf of the owner by the estate management service.
“The property manager will try to assist you with routine enquiries before signing the agreement, but if you are not sure of them, you should seek professional advice,” Mugalu says.
Mugalu says you should be very vigilant on lease terms because it contains information on how the property is managed on behalf of the owner by the estate management service.
“The property manager will try to assist you with routine enquiries before signing the agreement, but if you are not sure of them, you should seek professional advice,” Mugalu says.
Rent
Mugalu says rent will usually be stated as an annual amount and payments are normally due in advance either by months or years.
“The rent may be subject to VAT and you should check whether this is the case,” Mugalu says.
He adds that you should always ask for the date from which rent is payable to avoid any inconveniences or extra payments for the delays.
“When it comes to rent issues, many things come across and these include the days on which instalments of rent are payable and the rate at which you are charged late payment of any sums due under the lease,” Mugalu says.
Mugalu says rent will usually be stated as an annual amount and payments are normally due in advance either by months or years.
“The rent may be subject to VAT and you should check whether this is the case,” Mugalu says.
He adds that you should always ask for the date from which rent is payable to avoid any inconveniences or extra payments for the delays.
“When it comes to rent issues, many things come across and these include the days on which instalments of rent are payable and the rate at which you are charged late payment of any sums due under the lease,” Mugalu says.
Payments
Mugalu says rent can be paid by standing order or will be invoiced in accordance with the lease. Interest may be charged if payment is not received on the due date.
“In addition to rent, you may also be required to meet the cost of insuring the property and for other costs such as cleaning, repairing and maintaining thing,” Mugalu says.
Mugalu says rent can be paid by standing order or will be invoiced in accordance with the lease. Interest may be charged if payment is not received on the due date.
“In addition to rent, you may also be required to meet the cost of insuring the property and for other costs such as cleaning, repairing and maintaining thing,” Mugalu says.
Mugalu
says if you wish to use the property for something other than the use
described in the lease, you must first obtain the approval from the
property manager.
“You must also ensure that you have the approvals that may be necessary for your proposed use such as planning permission,” Mugalu says
Sheilah Namwanje, an estate manager, says property management is not an easy task because you have to compare the landlord’s condition and the tenant at the same time.
“You must also ensure that you have the approvals that may be necessary for your proposed use such as planning permission,” Mugalu says
Sheilah Namwanje, an estate manager, says property management is not an easy task because you have to compare the landlord’s condition and the tenant at the same time.
Rent Reviews
Namwanje says the lease may include rent reviews basing on the date agreed on especially while renewing the contract.
“Here rent may be increased if there has been any increase in market rents or any other increase in taxes and this will affect both the landlord and the tenant,” Namwanje says
Namwanje says the lease may include rent reviews basing on the date agreed on especially while renewing the contract.
“Here rent may be increased if there has been any increase in market rents or any other increase in taxes and this will affect both the landlord and the tenant,” Namwanje says
Repairs
Namwanje says the tenant will usually be responsible for repairing and decorating the property including interior and exterior as well as repairing and maintaining services.
“In most cases, you will be responsible for undertaking all repairs that are the tenant’s responsibility even if some work is required at the start of the lease,” Namwanje says.
She added that you should always seek professional advice before taking responsibility for a lease and consider having a survey carried out so that you know what costs might be incurred.
Namwanje says the tenant will usually be responsible for repairing and decorating the property including interior and exterior as well as repairing and maintaining services.
“In most cases, you will be responsible for undertaking all repairs that are the tenant’s responsibility even if some work is required at the start of the lease,” Namwanje says.
She added that you should always seek professional advice before taking responsibility for a lease and consider having a survey carried out so that you know what costs might be incurred.
“If
you fail to complete repairs that you are responsible for the property
manager may carry them out and recharge the cost to you,” Namwanje says
She says when it comes to amendments in the lease agreement, you must obtain permission from the property manager before carrying out most types of alterations to the property.
“You must also obtain any other consent that is required such as planning permission and Building Regulations approval,” Namwanje says.
She says when it comes to amendments in the lease agreement, you must obtain permission from the property manager before carrying out most types of alterations to the property.
“You must also obtain any other consent that is required such as planning permission and Building Regulations approval,” Namwanje says.
Transferring the lease
She says transferring the lease is common and in most cases the lease can be transferred to someone else with the same agreement. “If you decide to sell your business you should discuss any proposal to transfer the lease with the property manager before making a commitment to a third party,” Namwanje says.
She says transferring the lease is common and in most cases the lease can be transferred to someone else with the same agreement. “If you decide to sell your business you should discuss any proposal to transfer the lease with the property manager before making a commitment to a third party,” Namwanje says.
Insurance
Namwanje says insurance is one of the must condition in making lease agreement,”We will usually insure the property against fire and other risks and recharge the cost to the tenant . You will be responsible for insuring public and employer’s liability.
Namwanje says insurance is one of the must condition in making lease agreement,”We will usually insure the property against fire and other risks and recharge the cost to the tenant . You will be responsible for insuring public and employer’s liability.
Security of tenure
Mulagu emphasises that most leases come within the provisions of the Landlord & Tenant Act which means that when the original lease period ends you will be entitled to a new lease except in certain circumstances.
“You should receive a health warning advising you of the consequences of this. It is important to be aware if you do not have the right to renew and you should seek legal advice if necessary,” Mr Mugalu says.
Mulagu emphasises that most leases come within the provisions of the Landlord & Tenant Act which means that when the original lease period ends you will be entitled to a new lease except in certain circumstances.
“You should receive a health warning advising you of the consequences of this. It is important to be aware if you do not have the right to renew and you should seek legal advice if necessary,” Mr Mugalu says.
When the lease ends
He adds that if the lease is not being renewed and no other
arrangements have been made you must vacate the property at the end of
the lease period. You must remove the contents and return all the keys.
“You must return the property in the condition required by the lease. We may have the property inspected close to the end of the lease period and provide you with details of what is required,’ Mugalu says.
“You must return the property in the condition required by the lease. We may have the property inspected close to the end of the lease period and provide you with details of what is required,’ Mugalu says.
snakirigya@ug.nationmedia.com
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