You are here: HomeNews2003 03 07Article 33749

General News of Friday, 7 March 2003

Source: gna

Implement Rent Law

Mr Henry Badoo, Greater Accra Regional Rent Control Officer on Wednesday welcomed government's decision to review the Rent Law saying: "It would virtually eliminate the burden of the outrageous rent advances."

Speaking in an interview with the GNA in Accra, Mr Badoo said: "The indices, which are supposed to determine rent advance are not taken into consideration by landlords before slapping exorbitant rent on prospective tenants", he said.

Mr Yaw Osafo-Maafo, Minister of Finance, in this years' Budget Statement said current rent advances demanded by landlords would be reviewed to make it conducive and attractive for both citizens and investors.

The Rent Law 1963 Act 25 Section 5 states that: "Any person who as a condition of the grant, renewal or continuance of tenancy demands in the case of a monthly or shorter tenancy, the payment in advance should not be more than a month's rent or in the case of tenancy exceeding six months. The payment in advance of more than six months rent shall be guilty of an offence and shall upon conviction of appropriate Magistrate be liable to a fine not exceeding one hundred pounds".

Mr Badoo said the new law or review when implemented would bring rent to its right frame and streamline the system adding, "this indeed, would save prospective tenants from paying exorbitant rent advance which ends up tearing the livelihoods of workers."

He said indices such as the type of room, location, square area and provision of amenities such as water, bathroom, determined the amount of rent advance to be paid.

Mr Badoo indicated that certain areas in the Metropolis had been categorised into first, second and third class neighbourhoods, "this serves as a means of evaluation and a major determinant of rent advance" he said.

He admitted that over the years landlords had practised the rent law in a "great breach", adding," this had been aggravated by government policy of free market and a laissez-faire economy devoid of any interference."

He said landlords had complained that as much as the responsibility laid on them to charge rent advance in accordance with the law, the disheartening aspect was that, given the current socio-economic situation they could not stick to what was supposed to be charged.

Mr Badoo further explained that the landlords blamed the huge rent charges on the high cost of building materials and carrying out of renovations while others claimed that their livelihood depended on their houses.

He advised that any adjustment in rent advance should be attractive so that landlords would comply.