Landlords to reschedule rent payment

Landlords have accepted President’s request to reschedule payment of rental fees but declined to write off the arrears occasioned by the ongoing lockdown in the country.

The President made the remarks on Monday evening during his 13th address on Covid-19 pandemic in which he asked landlords to allow the tenants pay the monthly rental fees after the lockdown.

Although tenants have been asking the President to waive off rental arrears since March, landlords yesterday declined the request, arguing that they have outstanding loans to clear.

The landlords also said many of them had paid property tax and ground rent to government which must be recovered from their tenants.
However, those who talked to Daily Monitor yesterday that agreed to reschedule the monthly payment, made it clear to the tenants that they will be asked to pay the arrears when they resume work.

Mr Drake Lubega, a businessman and landlord, said most of the landlords acquire loans to construct arcades. “I entirely agree with the President on giving a tenants grace period to clear their outstanding rental dues as long as tenants are aware of their outstanding rental arrears. This Lockdown has not only affected tenants but also other people including landlords. Majority of us rely on rental fees to service bank loans which we borrowed to set up arcades.” Mr Lubega said.

Mr Ismail Ssenfuka, another landlord, said when the lockdown is lifted, he will write to all his tenants informing them of the time they shall be required to meet their rental arrears.

“It’s a tough time for all sectors and everyone is equally affected by the current crisis. Waiving off the rental arrears would imply that landlords have been working yet it isn’t the case..,” he said.

But traders raised fears that the arrears might accumulate if the lockdown is not lifted to allow them open shops and make sales which would be used to clear the debts.

“I pay Shs1.7m per month for my shop on Rashid Khamis Road and this means that if the lockdown is lifted at the end of the month, I will be required to pay Shs3.4m. Besides, the landlord will require me to make on spot payment for the subsequent month...,” Hajjat Namagga Ssaka, a spare parts dealer, said.

Ms Stella Nantege, who deals in men’s wear at Qualicel arcade, said most traders are likely to lose their businesses because of the accumulating rental fees.

“It will not be easy for some of us to salvage our businesses because the rental fees are accumulating yet we don’t have means to get money. Besides, we are now eating part of working capital,” she said.

Kacita says
Kampala City Traders Association (Kacita) chairperson Evarist Kayondo said the only way to save traders amid this Covid-19 crisis is to write off the collection of rental arrears so that they can begin on a fresh payment schedule. He warned that several traders are likely to close shop if the landlords insist on recovering arrears.

“We will continue engaging stakeholders to resolve this challenge because tenants too have loans to clear. When you tell a tenant to pay rental arrears yet these people were actually in lockdown, it means that you are technically kicking them out of business...,” Mr Kayondo said.

But the landlords have dismissed Mr Kayondo’s suggestion and called such a move “suicidal to the economy” and reiterated that the any proposal to waiver rental areas will stifle the economy and worsen unemployment. They also argued that Mr Kayondo’s proposal only favours tenants but not landlords yet all parties have been adversely affected by the crisis.

Government

Asked about what government will do to help both parties, Kampala minister Beti Amongi told Daily Monitor yesterday on phone that: “My ministry will only come in if the tenants lodge their complaints about being harassed to pay rental arrears”.

Ms Amongi advised landlords to respect the President’s directive and give tenants ample time to clear their arrears when the storm is over.

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