Rent agents cautioned against charging more than 5% on house rent
The Ashanti Regional Manager at the Rent Control Department, Asare Osei Pensan, has cautioned housing agents against charging more than 5% on annual rent payments.
According to the Rental Control Department, the 10% annual rent payment charged by housing agents is unlawful.
Mr. Pensah noted that he has observed a number of tenants who have been duped or exploited by these ‘middlemen.’
“It is an offence for a broker to charge a certain amount as proceeds for a service rendered. It is an offense to charge more than 5% of an annual recoverable rent. This means the law recognizes agencies or agents. There is nothing wrong when someone acts as an agent. But an agent has to act professionally as the law demands.
“I have had a similar encounter which shocked me. Someone rented a place priced at GHS 15,000. The agent was taking GHS 1,500 from the tenant. The landlord was not even aware. The landlord mentioned that he did not give out any property to the agent. It was a wonder they got to know those premises were being rented out,” he said.
As Ghana’s population continues to grow, demand for accommodation in urban areas, has seen an upward trend, as the ever-growing human population does not match available housing units.
The cost of renting has shot up, and some landlords demand two to three years rent advance with some also charging in foreign currencies, which is a violation of rent laws in Ghana.
Rent agents, who liaise between potential tenants and landlords, sometimes hijack the few accommodation units in the system to make extra income.
Landlords are also cautioned not to advertise a rental property without first getting an assessment certificate from the Rent Control.
According to Mr Pensan, doing so is a breach of the Rent Act and landlords could face severe sanctions.
“Anyone having an interest in any property can call our office for an assessment of rent. The best thing a tenant can do if they want to rent a place is to come to the rent control office. We will assess and show you the amount to pay. It becomes an offense when you are charged more than you are supposed to,“ he said.
