Building Rentals in Uganda, Costs, Materials & House Plans

Rentals in Uganda are constructed for either businesses or homesteads. Very many people have gained from constructing rentals and have improved on their standards of living. Rentals whether built for business or other things are a big earning since most people after completion of university do not want to go back home and they end up renting.

If you are constructing a building for commercial purposes, you need to first get permission from the city council, show them your plan and if it is approved then construction can begin.

You should also note that residential houses are not approved to be constructed next to a road as per the new rules of the city council and that the only construction allowed alongside the roads is rentals used for business purposes.

rentals in uganda

Factors to consider when constructing rentals

There are several things that one should consider when constructing rentals and these include the following:

The beauty of the house

You should have a very good house plan for your rentals if you want to get more tenants than the competition. If a house has a great outlook and the inside is also good, it will attract more people to your rentals because Ugandans love things that are eye catching for themselves and the visitors.

The security of the area

Most rentals being constructed in Uganda are fenced and have a security guard at the gate. Yes it is true that even those that are not fences are rented but a gate offers security to the tenant and adds value to your rentals. Therefore construct those rentals and fence them up in order to earn big from them.

The location of the rentals

Before you start construction, you need to know that people love rentals that offer easy access to town and their workplaces. People will find it hard to rent houses that do not offer easy access to town. You should also construct rentals in areas where services like transport, the market, water and electricity can easily be accessed.

The space

Rentals should be constructed in area that has ample space for all the tenants without causing any congestion. The rentals should have ample parking space, a compound where children can play from and where the tenants can move freely without inconveniencing others.

The size of the rentals

The rentals should be of different sizes in order to accommodate the different the different types of tenants in the country. The tenants’ types include the following

Tenants with families, these will need a lot of space due to the large family and will need privacy. So as you are constructing, make sure that you at least construct a house that is big enough to accommodate a family since they tend to stay longer in the house.

Tenants who are single, these might not require a lot of space but want classy rentals at affordable prices.

The relationship between the landlord and tenants

When you construct rentals make sure that you have an amicable relationship with the tenants because this will lead to them staying longer at your rentals and you earn big from their loyalty because looking for other tenants is not an easy task.

Make a contract

You should note that not all tenants are trustworthy before you start building your rentals make sure you have a contract that helps you stipulate what you need from them and the term and conditions needed for the houses.

The neighborhood

Construct rentals in a neighborhood that is very conducive for everyone to live in. You cannot construct rentals near a rubbish dumping site, next to a smelly sewage area. This will discourage people from renting them. So you should get a neighborhood that is disease and pollution free.

Be diverse when building

When constructing rentals, you need to consider the standards of living of the different people. Construct houses that favor people from low income earners, middle income earners and the high earners. This way you can get income from the various tenants. Although you should focus more on low and middle income earners since they make up the highest percentage in the country.


Types of rentals built in Uganda

There are different type of rentals that you can construct depending on the amount of money that you have and the size of land that is available and these are listed below:

  1. Villas in Uganda

These are suburban homes that are luxurious and comfortable. It can either be a storied building or bungalow and semidetached.

Villas offer different facilities like gyms, saunas, swimming pool and others. These are mostly rented out by those people who have a high income because they range between 800,000 onwards.


  1. Bungalows in Uganda

These are the most common rentals being constructed in the country and they are detached houses. They range from three bedrooms or more bedrooms depending on the floor plan of the architect.

These are normally rented by middle income earners and they rent houses that fit their desired structure.


Row houses

These are houses that have the same design and are located in the same area. They are built in rows and are semidetached. Row houses are exceptionally cheap as compared to others and that is why they are sought after more than other house.

Apartments Uganda

These are privately owned houses and they are found in other large buildings. Apartments are mostly rented by high earning people and they are majorly found in urban areas that are easily accessible to the different services of water, transport and electricity.

Categories of houses

There are majorly two categories under which all the above types of rentals belong and these are:


Basic houses

These vary depending on the different things like materials used in construction, the design and the location. These houses are simple built depending on the necessity of human beings that is they offer rooms but they do not necessarily need to be self-contained.

The rest of the facilities can be shared with other tenants.


Standard houses

These are houses that do not necessarily need to be fenced if the money is not enough but they are beautiful and can be rented by anyone. They are not expensive and the examples of such houses include bungalows, condos and apartments.

Challenges faced when constructing rentals in Uganda


  • The expensive yet poor quality materials sold on the market in Uganda are a big challenge as one spends on materials and yet they are substandard which leads to the houses getting spoilt easily.
  • The limited and less qualified labor found in the country is a challenge since the less labor increase the time spent when constructing.


  • The safety at construction sites is minimal and this sometimes leads to loss of lives at construction sites.
  • The new technology that is being used on the different construction sites at the moment is a hard for most of the labor to adopt and this has become a challenge in the construction of rentals.


  • The complex designs that the owner of the houses needs is a problem since some house designs are hard to construct.


Problems faced by rental owners

  • Some of the tenants do not pay their rental areas and escape from the houses this creates a loss for the owner of the rentals.


  • The constant renovation needed for the houses once it is vacated also increases the expenses of the owner of the houses.


  • Natural disasters like floods and earthquakes can affect the house and all this cost is burdened by the owner and not the tenants.


  • They also face a problem of property vandalism by the tenants which brings an extra cost when it comes to replacing the vandalized things.


Advantages of building rentals in Uganda

It is a form of employment to the owner of the house leading to an increased level of standards of living.


Rentals are a lifetime investment that can be kept through generations and you still earn from them after retirement.


Rentals give you ample time to concentrate on other businesses while still managing them


In conclusion, when you are building rentals you need to find out the economic standing of the people in the area where your construction is taking place. This will give a clear view of what to expect when the houses are done and whether you are going to gain from them.


Make sure that the houses are in good shape and are attractive to the Seeing Eye and if you fail to get a tenant you can hire brokers to help you search for the tenants and give them a portion of the money earned.


Also remember that when constructing rentals, you do not need to use the most expensive materials for the rentals to look good but just improve on the design and color used after construction. You might not gain from them in the start but since it is a long term investment, it needs patience and you can gain big from it in the near future.




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