The Independent Uganda: You get the Truth we Pay the Price
“In actual fact, they are making it worse, and in the process are going to destroy the property sector,” she said.
“Charging rent in shillings and banning rent in dollars is not the solution, we are barking up the wrong tree.”
She said the relationship between landlords and tenants downtown is where the problem lies because the arrangement is informal and unregulated.
She said it is until all these relationships between landlords and tenants are formalized that the issue of arbitrary rent increments will be resolved, and certainly, not by insisting that rent is paid in shillings.
“Coming up with the rent controls and other related measures will only serve to discourage property development most of which is funded in US dollars because it is cheaper than borrowing in Uganda Shillings, and is also a short term solution to a long term problem,” she said.
On the issue of landlords being responsible for all installation costs in connection to water, gas, sanitation, sewerage or other utility services, Rugasira says this works for small tenants or houses but not for large space users like data centres, cold rooms, or supermarkets where load requirements are specific to the nature of the business.
“It will not be viable for the landlord to incur these costs and if they are passed on to the tenant, then the agreement is void as per the Act and the landlord could suffer imprisonment,” she said.
Debate on rent control a global issue
This development comes at the time there is a debate globally on whether rent controls enable low income earners access decent housing.
For instance, New York’s mayor, Bill de Blasio, recently campaigned vigorously for rent freezes on rent-stabilised apartments, according to The Economist.
In London, several mayoral hopefuls have mooted the idea of introducing some form of rent control to the city.
In France, rental prices are set by a third party in areas of high demand whereas in German, cities like Berlin and Munich, there are caps on how high, rents can be charged.
Gideon Badagawa, the executive director at the Private Sector Foundation Uganda told The Independent that they welcome the proposed law set to regulate rent charges.
“Initially, landlords could simply wake up one morning and increase the rent,” he said.
“Once the proposed law is passed in parliament, landlords will be required to inform their tenants of increase in rent, at least six months earlier, and the tenant is supposed to write back the landlord expressing acceptance or a plan to vacate the house,” Badagawa explained.
KACITA chairman, Evaristo Kayondo, said the Bill would rein in notorious landlords who hike rent overnight and forcefully evict tenants in favour of foreign traders especially Asian businessmen who pay in foreign currency.
This, he say, has been the major cause occasional protests in down-town among the traders.
Economists, however, disagree on the proposed rent control law. Prof Augustus Nuwagaba, an economist and a managing consultant at Reev Consult, argue that regulating rent especially commercial buildings in Kampala, could spur economic growth.
Do these cabinet ministers own any properties in this country? Why would they seem to only favour the tenants as if landlords are not supposed to benefit from their sweat. There is really nothing much one can do if they cannot build their own houses. Once not happy with one landlord move on to the next with hope of forging relationship. Otherwise as the bill is it will deter people from construction residential and commercial properties for fear of marginalisation hence keep the housing deficit as high as 8m as it stands now.