RENT POLICIES IN GHANA
By P. K. Amofa
When the name “Rent Control” is mentioned, first thing that rings a bell in any Ghanaian’s mind is that unit that serves as an arbitrator between landlords and tenants with regards to rent issues. How about getting a deeper understanding of the functions of The Rent Control Department?
The Head of Public Relations of the Rent Control, Mr. Emmanuel Hovey Kporsu recently highlighted on the activities and responsibilities of their Unit (Rent Control).
By his explanation, the unit’s key responsibility is the implementation of rent policies in Ghana.
The first responsibility he pointed out was their duty to regulate rent rates in the country; according to him, rent rates advance are not supposed to exceed six months duration. In other words, tenants are not to pay rent advances that go beyond six months when landlords demand that.
In addition, when landlords wish to increase their rent rates, they need to inform rent officers for approval.
Another role of The Rent Control department, is to work closely with landlords to quote the appropriate value of properties or buildings that have been refurbished or improved by the latter.
Ensuring that agents do not charge exorbitant rates is their responsibility as well, agents of real estates and housing are to charge 5% of the advance paid by the tenant. Furthermore, this percentage is supposed to be paid to the agent by the landlord and not the tenant.
Failure to adhere to these laws and policies are punishable according to Mr. Kporsu; in the case of taking rent advances that exceed six months will either attract a fine or a jail term by perpetrators. Agents who are also found charging fee that are more than the 5% ceiling will have their license revoked, or pay a fine or face a jail term.
Unfortunately, the situation on the ground is not reflective of what Mr. Kporsu listed and identified earlier, as rent rates charged by many landlords are two years in advance. Agents do not also take the 5% fee, rather 10%. The fee charged by these agents are also borne by tenants and not landlords.
Mr. Kporsu, did not deny the fact that, the unit is deficient in its functions or operations and appealed to the appropriate stakeholders to help resource their department. Upgrading and providing resources for their department would help maximize their output and achieve their objectives he said.
