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Navigating leases in Senegal, whether residential or commercial, can seem complex. Here is a clear and concise guide to help you master the essential aspects of leases in Senegal, whether you are a landlord or a tenant.
1- Residential leases
In Senegal, residential leases are governed by the Code of Civil and Commercial Obligations. Leases must be signed for a period of three years or more. A lease signed for less than three years is automatically requalified as an open-ended lease.
By default, at the end of each three-year period, the lease is renewed for a further three-year period,
unless one of the parties decides otherwise in accordance with the provisions of the Code.
Terminating a lease can be a tricky business. If one of the parties fails to meet its obligations, the lease may be terminated by an interim relief judge, after a 30-day formal notice has gone unanswered. For open-ended leases, two months’ notice is required to terminate the contract. This notice must be served by the lessee by means of a bailiff’s writ, failing which it will be null and void.
As the Tenant, you are responsible for the day-to-day upkeep of the premises and minor repairs. It is crucial that you do not alter the premises without the owner’s written agreement. It is also essential to
draw up a joint inventory of fixtures on entering and leaving the property. This protects your rights and
avoids disputes over the inventory of fixtures when you leave and the return of the deposit.
A major advance in the legislation governing leases in Senegal was introduced by Decree no. 2023-382
of 24 February 2023 amending Law no. 2014-03 of 22 January 2014, which reduced rents that had not
been calculated according to the corrected surface area.
This decree provides for a reduction in rents according to a precise scale. In addition, the conditions governing access to rental accommodation have been relaxed. The amount of the deposit may not exceed the equivalent of two months’ rent for leases of 500,000 CFA francs or less per month, and only the equivalent of one month’s rent is payable on entry into possession, with the remainder spread over twelve months. Rent no longer has to be paid in advance and is now payable at the end of the month in which the tenant takes possession.
Finally, agency or brokerage commission fees have been reduced to half a month’s rent for leases of 500,000 CFA francs or less.
Note that this decree applies to all residential leases governed by the Code of Civil and Commercial Obligations from the date of its entry into force.
2- Commercial leases
Commercial leases are governed by the OHADA Uniform Act on General Commercial Law. A commercial lease may be concluded in writing or verbally, although written formalisation is strongly recommended. The lessor is obliged to deliver the premises in good condition and to take responsibility for major repairs.
As a commercial tenant, it is essential to operate the premises in accordance with their intended purpose as set out in the lease. Any changes or additions to the business must be notified to the landlord, who may object. You are also responsible for maintenance repairs and damage caused by lack of maintenance.
The right to renew a commercial lease is acquired after two years of proper operation. No clause in the contract can prevent this right to renewal. A tacit or explicit renewal commits the lease for a minimum of three years.
A tenant who is entitled to renewal must make a request for renewal by bailiff or other means proving receipt, no later than three months before the end of the lease term. If this request is not made within this period, the tenant loses his right to renewal.
Furthermore, if the landlord does not respond to the renewal request at least one month before the lease expires, the renewal is deemed to have been accepted.
It is therefore crucial for tenants to respect these deadlines if they are not to lose this important right.
As regards termination, in the case of an open-ended lease, six months’ notice is required to terminate the contract. For fixed-term leases, termination is only possible at the end of the agreed period or in the
event of a serious breach of contractual obligations.
To ensure that tenancies in Senegal are managed smoothly and harmoniously, it is important to understand the regulations governing leases and to comply with the obligations of both landlords and tenants.