- Base rent
- The core amount you pay for the space itself, usually quoted per square metre per month and separate from service charge and utilities.
- Service charge
- A contribution towards the running of the building, security, cleaning, common-area lighting and management. Always confirm whether it is included in the rent or billed on top.
- Key money / goodwill
- A one-off payment sometimes requested for a sought-after unit, especially prime lockups. It is negotiable and should always be recorded in writing.
- Deposit
- A refundable sum, commonly two to three months’ rent, held by the landlord against damage or unpaid rent and returned at the end of the lease.
- Rent-free period
- Time at the start of a lease during which rent is waived, giving you room to fit out the space before you start paying in full.
- Escalation
- The agreed rate at which rent increases over the life of the lease, often a fixed annual percentage.
- Lease term
- The length of the lease. Longer terms give stability; shorter terms give flexibility. Know your term and how it renews.
- Notice period
- How much warning either party must give to end the lease. A short notice period protects a growing business that may need to move.
- Dilapidations
- The condition you are required to return the space in when the lease ends. Photograph the unit at handover so there are no disputes later.
- Lettable / usable area
- The floor area you can actually use, as opposed to gross area which may include shared walls and common space. Rent is usually charged on the lettable area.
- Common areas
- Shared parts of a building, corridors, stairs, toilets, parking and reception, maintained through the service charge.
- Anchor tenant
- A large, well-known tenant (such as a supermarket or bank) that draws steady footfall to a building, benefiting the smaller units around it.
- Fit-out
- The work needed to make a bare space ready for your business, partitions, shelving, wiring, signage and finishes.
- Sub-letting
- Renting part or all of your leased space to another business. It usually requires the landlord’s written consent.
- Co-letting
- Two or more businesses sharing a single space and splitting the rent and service charge, often to occupy a prime location affordably.
- Yaka
- Uganda’s prepaid electricity system. Commercial tenants typically buy power tokens, so factor Yaka into your monthly running costs.
- Turnover rent
- A lease structure where part of the rent is calculated as a percentage of your sales, sometimes used in shopping malls.
- Break clause
- A provision allowing either party to end the lease early on a specified date, subject to notice.