What should be done if tenant cannot pay their rent due to corona virus?
Several businesses are closing due to the corona virus at the same time that rent is coming due—and renters across the country are trying to figure out how to move forward.
In a country where more than 70 percent of the population rents their home, local legislatures are struggling to help tenants, both residential and commercial. But there isn’t any eviction moratorium, rent freeze, or rent forgiveness program—at least not yet.
What the government of Uganda or legislatures do have the right now is to set protections against evictions. The country is also giving renters time to pay back any rent payments they might miss during the outbreak.
There should be some protections are available to renters and what to do if you get an eviction notice.
What should be done by lawmakers?
The lawmakers must stop landlords from evicting residential tenants who are unable to pay rent because of loss of income from work, high costs of living related to school closures, healthcare costs, or reasonable expenditures related to COVID-19.
Evictions under the LANDLORD AND TENANT BILL 2016, which seeks to abolish the remedy of distress for rent. If a tenant fails to pay rent and is in arrears, a landlord is prohibited from locking the premises and must apply to court to recover the rent.
Real Estate experts suggest that landlords and tenants work together to avoid a situation where rents were no longer paid, which would be problematic for both parties.
They also advised landlords should check with their tenants on their job security and be prepared to offer slight reductions in rent if the tenants were struggling or lost their jobs.
Tenants would be better off reaching out to their landlords to renegotiate their rent than waiting until they were under financial duress and couldn’t pay, according to Property managers in Kampala
Even if evictions could continue, landlords are not in the best position to find new tenants at the moment and should be more open to working something out.
Furthermore landlords should do everything possible not to sell in the current market as they would likely take a hit with the price.
Landlords and tenants were also advised to keep in mind the current crisis will eventually blow over. We’re all going to take a hit from this and it’s time for everyone to come together and help each other.
WHAT TENANTS AND LANDLORDS CAN DO?
Landlords
- Update landlord insurance
- Speak to your bank about getting mortgage holiday
- Offer small rent reduction if tenants jobless
- Consider a line of credit
- Avoid selling if possible
Tenants
- Ask landlord for assistance if struggling
- Consider renegotiating lease terms
What should you do if you receive an eviction notice?
If you receive an eviction notice that you suspect violates the law—like notice to pay rent or quit which is the first step in the legal process for evictions—file a complaint with your local council which is handling eviction investigations on the village level.
