Rent Control Ghana: A tenants guide to living peacefully

Rent control Ghana was introduced by the government to address some of these issues such as landlords charging exorbitant prices of rent, increasing prices of rent when they feel like doing so and ejecting tenants without any prior notice.  Although rent control is of key interest in the sector, do tenants or even landlords know what it means to sign the Ghana rent control tenant agreement form? In this article, we’ll be looking at rent control in Ghana as a tenant’s guide to living peacefully.

For many years, housing has been a major concern in the country. Rental homes have been an alternative for the people who have no form of housing due to their availability and affordability. However, there have been a lot of issues in the sector. 

What is Rent Control Ghana?

In simple words, rent control is when the government places a limit on how much a property owner or landlord can charge tenants as rent.

Rent Control Law, 1986 (PNDCL 138) was passed to regulate the relationship between tenants and landlords in Ghana. Section 4 of the Rent Control Law 1986 ( PNDCL 138), states that “every landlord of any residential accommodation ( be it a single or two-roomed accommodation) shall register with the Rent and Housing Committee each lease within 14 days of entering into the tenancy agreement”.

 

The Committee also served as an avenue where tenants and landlords could voice their concerns. Section 7 of the same law states further that “complaints or an action by a landlord against a tenant in respect of a residential accommodation whether single or two-roomed shall not be heard by the Rent and Housing Committee unless it is satisfied that the landlord has fulfilled the obligations imposed on the landlord by section 5. 

 

Section 5 obligates landlords of residential accommodation to:

1. Issue to each tenant of the accommodation a rent card specifying the following.

• The name and address of the landlord.
• The name and address of the tenant.
• The amount of rent payable by the tenant 
• Any other particulars prescribed by the Minister and

2.  Furnish to the nearest Rent and Housing Committee a list of the names of the tenants and the actual rents paid by each of the tenants.

According to section 6 of the Rent Control Law 1986, the enactment of a tenant or recovery of possession from a tenant in respect of a residential accommodation shall not be entertained unless, 

1. a) There’s a genuine intention to recover possession of the accommodation for the personal occupation as a dwelling room or rooms for the landlord, a member of the landlord’s family or any person in the landlord’s full-time employment.

b) Or that the accommodation is reasonably required by the landlord to be used by the landlord for business purposes.

Subsection 3 adds that once a landlord makes an application for the ejection of a tenant or the recovery of possession based on the reason stated above, the Rent and Housing Committee may call for documentary evidence or verification from the landlord and may, if satisfied, make an appropriate order.

 

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What are the advantages and disadvantages of rent control for landlords in Ghana?

Rent control has been met with some controversies and opposition by landlords. The policy seeks to protect the tenant and landlord alike. However, some landlords are of the perception that the tenant stands to benefit. Hence the question, what does rent control mean for the landlord? Below are some advantages and disadvantages of rent control for landlords in Ghana.

Advantages of rent control for landlords in Ghana

• Thanks to rent control in Ghana, rent is set at a fixed price. This is not only good news for the tenant but for the landlord as well because it will make it easier for the tenant to budget for the cost of rent and pay on time. 

Disadvantages of rent control for landlords in Ghana.

• Rent control primarily limits how much and when landlords can raise the cost of renting out their property. This places a cap on how much profit the landlord is going to make.

 

• Additionally, landlords may bear the financial burdens of maintenance. The limit to which landlords can increase the price of rent does not exempt them from the charges of fixing electrical faults or water shortages for instance. The rent paid by tenants may not be enough to cater for all these maintenance costs due to rent control.
• Rent control also serves as a disincentive for potential. Due to the limit on rental charges, people who are looking at becoming landlords would rather look at an alternative property such as commercial buildings rather than residential property.

What are the advantages and disadvantages of rent control for tenants in Ghana?

Rent control undoubtedly eases the burden on tenants. Here are some advantages and disadvantages of rent control for tenants in Ghana.

Advantages of rent control for tenants in Ghana

• The main advantage of rent control in Ghana being introduced is affordability. The regulation of rent charged at a standard price means that landlords no longer have the power to overcharge tenants for their properties. This helps the tenant to easily raise money for rent and other basic needs. The Rent Control Act Ghana allows tenants to live at ease without any fear of hikes in the cost of the rent.
• Rent control to some extent gives the tenant some level of financial freedom. Before rent control, property owners charged high prices. However, with the government determining the cost of rent, tenants will be able to save money that initially would have gone to the payment of exorbitant tent charges.

 

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Disadvantages of rent control for tenants in Ghana.

• With rent control, it is difficult to get houses to rent because some landlords would rather turn their property into a commercial property where they are not restricted by any law and they can make a good profit compared to residential properties. Also, with a standardized cost of rent, tenants will be less likely to move out making it difficult for other people to get accommodation.

How much notice does a landlord have to give a tenant to move out?

In Ghana, a landlord is mandated by law to serve a tenant with 30 days’ notice to move out. For a landlord to evict a tenant there are some processes he or she must go through to legally evict a tenant.

Do tenants have rights after 3 years?

By law, tenancy agreements or rent contracts in Ghana last for 6 years, however, most tenants and landlords come to an agreement of 3 years. After 3 years, the tenant can decide to call for a renewal of the contract or move out. If the tenant decides to terminate the contract before 3 years, he is to give the landlord 3 months’ notice as mentioned earlier or in some cases find someone to take over till the 3 years period is up. In other cases, the tenant has to wait for a refund since the tenant money may have used the money for other things. If the landlord also decides to terminate the contract, the landlord is mandated to give the tenant a period of three months to find accommodation elsewhere.

 

Whichever way you want to look at it, Rent control Ghana by regulating rent has made house renting uniform such that it benefits both the landlord and tenant although we have a long way to go as a country.

 

With that being said, if you’re looking to acquire a property and become your own landlord, Quao Realty is your trusted partner. Our priority is to acquire prime lands and develop them into quality projects that are luxurious yet affordable and worth every penny spent. 233 Boulevard, Pristine Gardens and The Essence are our current projects fitted with the best amenities to ensure your comfort and are conveniently situated in prime areas. Our past projects, Legacy Square and Othniel’s Place have also given residents the ultimate living experience.

 

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Quao Realty is made up of a team of well versed young people with great expertise in the real estate sector. The luxury real estate company focuses on acquisition, development, construction, management services, sales and leasing. Quao Realty offers flexible and comprehensive payment plans to help prospects make the best financial decisions, and cash and mortgage plans. Are you looking to purchase a property either as an investment or a home? Give us a call today for the best in real estate!