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New Rental Scheme violates six-month advance rent law – RHAG to Govt

The Rental Housing Association of Ghana (RHAG) has expressed their disappointment in government for the decision to pay two years advance on behalf of tenants to landlords in the new rent scheme introduced to protect tenants in the country.

Andy Frimpong Manso by Andy Frimpong Manso
February 23, 2023
in General, Local News, Top Stories
New Rental Scheme violates six-month advance rent law – RHAG to Govt
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The Rental Housing Association of Ghana (RHAG) has expressed their disappointment in government for the decision to pay two years advance on behalf of tenants to landlords in the new rent scheme introduced to protect tenants in the country.

According to RHAG, the initiative taken by the government is indeed laudable and is in support except that, the two years rent advance defeats the Rent Act which says that landlords cannot demand for rent advance of more than six months.

Speaking at a press conference, the President of Rental Housing Association of Ghana (RHAG), Madam Regina Ekua Christian Koomson said, the decision making to pay two years advance to landlords rather defeats government’s law of six months advance set up to protect tenants from the abuse of landlords.

“Concerning the recent launch of the novel National Rental Assistance Scheme, for example, we applaud the President Nana Akufo-Addo for the initiative. We also applaud the minister for Works and Housing Honorable Francis Asenso – Boakye and his team. However, certain areas of the Scheme must be looked into. Since the launch of the scheme, the association has been bombarded with telephone calls from tenants who are under the impression that we are somehow involved with the operations of the scheme”.

She said, if government go ahead and pays the two years’ advance, then there was no need to intervene and should allow landlords to continue taking their 2,3 or 4 years’ advance from tenants.

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“According to the current rent act, landlords cannot demand for rent advance of more than 6 months. Yet, the Scheme provides funds for landlords to be paid rent in advance for even up to two years as a lump sum. This is total confusion and creates room for landlords to break the law. RHAG is however also committed to educating all prospective tenants as well, to desist from offering landlords more than the required 6six month rent advance”.

She thanked the government for the approval of the draft rent bill by Cabinet adding that the Association look forward to seeing it being passed into law by parliament within the shortest possible time.

Ghana, Madam Regina Ekua Christian stated, currently has a housing deficit of 1.8 million with tenants being on the receiving end of the difficulties.

She assured of the Association’s commitment to educating landlords on issues such as tenancy agreements, issuing of receipts after rent payment, wrongful termination and eviction processes and all other issues that arise out of rentals.

“The passing of the rent bill into law would solidify all the above mentioned, as it seeks to empower the Rent control department to act as the facilitating body”.

Madam Regina Koomson bemoans the current status of the Saglemi affordable housing project and calls for a speedy resolution to enable its intended purpose of creating affordable housing and further reducing the housing deficit.

She appealed to government to create space for facility and property managers in the rental housing industry saying, RHAG stands out as an available resource to get that done.

“It is however unfortunate, that the Rent Control department is not as adequately resourced as it should be with human resources as well as logistics to carry out its mandate”.

The Rental Housing Association of Ghana was established in September of last year and duly launched on the 27th December 2022.

RHAG is an organization committed to bringing all rental housing professionals together in Ghana, to enrich the rental housing industry and re-birth professionals that can aid in the stability of the industry through education, collaboration and advocacy which are our core pillars.

RHAG however, signed an MOU with NATUG and then GAREB to work hand in hand in other to fight for the interest of tenants in the country.

 

 

Tags: Rent issuesRental Housing Association of Ghana (RHAG)Saglemi Housing Project

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