Selling a House With Tenants in It
Updated 3 November 2026 · Land & Property editorial team
A sale does not end a tenancy. The Landlord and Tenant Act, 2022 says a tenancy ends only under the Act or the tenancy agreement, and section 30(6) says the security deposit passes to the new landlord, who must tell the tenant. So the buyer takes the tenants as they are. Prepare a tenant schedule, hand over the deposits, and give notice before viewings. As of November 2026.
- Does a sale end a tenancy?
- No. A tenancy ends only under the Act or the agreement (Act 9 of 2022, s.34)
- Deposits on a change of landlord
- Transferred to the successor landlord, who must notify the tenant (s.30(6))
- Residential notice periods
- 7 days (weekly), 30 days (monthly), 60 days (year to year); shorter periods are void (s.38)
- Unlawful eviction
- Tenant may seek court relief or an equivalent to three months' rent (s.45)
Do tenants have to leave when a house is sold?
No. The Landlord and Tenant Act, 2022 (Act 9 of 2022) applies to the letting of residential and business premises (section 1(1)). Section 34 says a tenancy shall not be terminated except in accordance with the Act or with the tenancy agreement, and the Act we read does not list a sale of the property as a ground. So the buyer inherits the tenants and the tenancy terms, including the rent and the end date. A landlord who pressures a tenant to leave to make a sale easier risks section 45, which bars eviction or attempts to compel a tenant to vacate except as the Act or the agreement allows, and gives the tenant a right to court relief or an equivalent to three months' rent.
If you want the property empty, ask the tenants to leave by agreement (section 35 allows termination by agreement of landlord and tenant), or wait for the end of a fixed term, or give the right notice. For residential tenancies, section 38(2) sets notice at seven days for a weekly tenancy, thirty days for a monthly tenancy and sixty days for a year-to-year tenancy, and section 38(4) makes any shorter period in the agreement void. Those notice rules are written for residential tenancies, so check a shop or office lease for its own terms. This is general information as of November 2026, not legal advice.
Who keeps the deposits when I sell?
The new landlord is responsible for them, so the money must follow the building. Section 30(6) says that where, during a tenancy, the status of landlord is transferred to another person, the security deposit shall be transferred and the successor landlord shall notify the tenant of the change. Section 30 also limits the landlord to one security deposit, and requires a written receipt and written terms on when any part may be withheld.
In practice:
- List every deposit in your tenant schedule, with amounts and dates.
- Agree in the sale agreement whether you hand the cash to the buyer or reduce the price by the same amount. Do not leave this to be sorted out after completion.
- Have each tenant told in writing that the landlord has changed, with the buyer's name and how to pay rent.
- Keep copies of the receipts you issued. If a tenant later says they paid a deposit you cannot show, the buyer will look to you.
What goes in a tenant schedule?
A buyer of a tenanted house is buying an income. A simple schedule makes the value clear and builds trust. Include:
| Item | What to show |
|---|---|
| Tenant and unit | Name, unit or room, start date |
| Type of tenancy | Weekly, monthly, yearly or fixed term, and the end date |
| Rent and how paid | Amount, due date, payment method |
| Deposit held | Amount, receipt date |
| Arrears | Any rent unpaid and for how long |
| Written agreement | Whether one exists, and a copy |
If a tenancy is not written, the Act (section 3) requires the landlord to keep a record of the parties, the premises and the rent, and to give the tenant a copy. Write one now so the buyer can see it. For a building with many units, read Selling a Commercial Building or Rental Block for rent rolls and yields.
How do I arrange viewings with tenants living there?
Treat the tenant as a partner. A landlord has a right to enter the premises after written notice (section 48), with the person needed for the purpose, and enters without notice only in an emergency. The printed text of section 48 gives the notice as a number of hours, so give at least 24 hours in writing to be safe. The Act does not say in terms that a buyer's viewing counts as the purpose, so we recommend the tenant's agreement as well. A landlord who enters in breach of section 48 commits an offence and can be fined up to one hundred currency points.
To make viewings painless:
- Offer fixed viewing slots, such as two afternoons a week, and tell tenants the dates early.
- Ask the tenant to tidy the common areas, and thank them. A rent discount for the viewing period is your choice, not a legal rule.
- Take photos of empty units and of common spaces. Show occupied rooms only with the tenant's permission.
- Use our house viewing checklist to prepare a list of things a buyer will ask about.
Should I sell or keep renting?
Think about it before you list. A tenanted house sells to investors who want income, while an empty house also attracts owner-occupiers. If you are unsure, read should I sell or rent my house. If a bank loan sits on the title, the buyer will need the loan cleared at completion: see Selling Property That Still Has a Mortgage. For the general sale route, read sell my house. When you are ready, list your property free, add the tenant schedule to your document pack and say plainly in the listing that the house is let, with the rent and the lease end date. Our sell pages cover the rest of the steps.
Frequently asked questions
Do tenants have to leave when a house is sold?
No. The Landlord and Tenant Act, 2022 says a tenancy ends only under the Act or the agreement. The buyer takes over the tenancy. To end it, use agreement, expiry of a fixed term, or the right notice.
Who keeps the deposits?
The new landlord. Section 30(6) says the deposit is transferred to the successor landlord, who must notify the tenant. Agree in the sale agreement whether you hand over the cash or reduce the price.
How much notice must a landlord give a residential tenant?
Seven days for a weekly tenancy, thirty days for a monthly tenancy and sixty days for a year-to-year tenancy. A shorter period in the agreement is void (section 38).
Can I enter the house to show it to buyers?
You may enter after written notice (section 48), and without notice only in an emergency. Give at least 24 hours in writing and get the tenant's agreement for buyer viewings.
Can I evict a tenant to sell the house empty?
Not unlawfully. Section 45 bars eviction or pressure to vacate except as the Act or the agreement allows, and gives the tenant a right to court relief or an equivalent to three months' rent.
Sources
- Landlord and Tenant Act, 2022 (Act 9 of 2022), sections 1, 3, 30, 34, 35, 38, 45 and 48, Uganda Legal Information Institute (accessed 2026-11)