A Look At Excessive Rent Advance Demands In Ghana

Rent issues in Ghana are a major challenge for both tenants and landlords. The housing sector is largely unregulated in practice, leading to high rents, unfair demands, and conflicts.

Rents in cities like Accra, Kumasi, and Takoradi are extremely high, making housing unaffordable for many. Salaries do not match the rising cost of rent, forcing many to live in overcrowded or substandard housing.

By law, landlords should not demand more than six months’ rent advance. However, in reality, most landlords demand two to three years’ rent upfront, which many tenants struggle to afford.

The Rent Control Department lacks enforcement power, allowing landlords to break rent laws with little consequence. Dispute resolution is slow, and many tenants avoid using Rent Control due to inefficiency.

Ghana faces a housing deficit of over two million units, creating high demand and giving landlords excessive power over tenants.
Affordable housing projects are limited, and many middle-class and low-income earners struggle to find decent places to live.

In fact, many rental properties are in bad condition, but tenants have no bargaining power to demand repairs. Some landlords increase rent arbitrarily without improving living conditions.

Disputes over eviction, rent increments, and maintenance issues are common. Some landlords eject tenants without proper notice, while some tenants also refuse to pay rent.

Many rental agreements are informal, with no written contracts. This makes it difficult for tenants to challenge unfair treatment legally.

Tackling The Issue:

The 1963 Rent Act (Act 220) needs updating to reflect modern realities.

Rent Control must be empowered to enforce rent laws and punish violators. Government and private developers must increase affordable housing projects.

Tenants should be educated about their rights and legal processes.

As a matter of fact, Ghana’s Rent Control Department is often described as “toothless” because it lacks the necessary enforcement powers, resources, and modern regulations to effectively regulate the rental housing sector. There are several key reasons for this.

1. Lack of Enforcement Power: The department can mediate disputes between landlords and tenants, but it has limited authority to enforce its decisions. Many landlords ignore rulings without facing consequences. Evictions and other legal actions require court intervention, which is slow and cumbersome.
2. Outdated Rent Act (1963, Act 220): The current rent law is outdated and does not reflect modern realities of the housing market. The law sets rent controls that are largely ignored in practice, as landlords demand high advance payments.
3. Resource Constraints: The department is understaffed and underfunded, making it difficult to handle complaints efficiently. Many offices lack basic equipment and logistics to function effectively.
4. Excessive Rent Advance Demands:
   Despite the law limiting rent advances to six months, landlords frequently demand two to three years’ rent upfront. The department lacks the means to stop this widespread practice.
5. Weak Public Awareness & Compliance: Many tenants and landlords are unaware of their rights and obligations under the law.
   Those who do know often choose to bypass the Rent Control Department due to inefficiency.
6. Judicial Bottlenecks: Cases referred to the courts take years to resolve, discouraging tenants from pursuing legal action.

In addition to the aforementioned, the government must present viable remedies to alleviate the frustrations on the populace, such as:

• Reforming the Rent Act to reflect current realities.
• Empowering the Rent Control Department with stronger enforcement authority.
• Improving funding and staffing to enhance efficiency.
• Raising public awareness about tenants’ and landlords’ rights.

Meanwhile, some housing experts believe that the private sector is better equipped to regulate housing issues in Ghana, aside from government intervention to address these problems.