Service charge, key money and deposits: Ugandan lease terms explained

Signing your first commercial lease means meeting a set of terms that rarely come up in everyday life. Understanding them protects your money and your position as a tenant.

• Base rent, the core amount you pay for the space, usually quoted per square metre per month.
• Service charge, a separate contribution towards security, cleaning, common areas and building management.
• Key money / goodwill, a one-off, negotiable payment sometimes asked for a sought-after unit; always document it.
• Deposit, a refundable sum, often two to three months’ rent, held against damage or unpaid rent.
• Rent-free period, time at the start of a lease, rent waived, to let you fit out the space.
• Escalation, the agreed rate at which rent rises over the life of the lease.
• Dilapidations, the condition you must return the space in when the lease ends.

Read before you sign

Never sign a lease you have not read line by line, and query anything that is unclear. Our full Lease Glossary breaks down every term you are likely to encounter, and a Qubicle broker can translate the fine print into plain English before you commit.