Business News of Sunday, 8 October 2023

Source: rainbowradioonline.com

It is criminal for agents to charge tenants 10% commission after finding them rent – Rent Control

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The Rent Control Department has maintained that the 10% commission charged by agents who seek housing for tenants is not accepted by the Rent Law.

According to the department, the employment of agents is legitimate; however, the 10% fee they earn from tenants on rent charges is illegal.

Speaking on Nyankonton Mu Nsem on Rainbow Radio 87.5Fm, the department said it is not the tenant’s responsibility to pay such commissions to the agent.

Mr. Emmanuel Kporsu, the Department’s Public Relations Officer, stated that it is illegal for an agent to receive 10% of a tenant’s rent after assisting them in finding a place to live.

“The law recognises that when an agent works and searches for a room for someone, the landlord is responsible for paying the agent.” Because the accommodation rented is not for you as an agent, you have no authority to charge 10%. Because the landlord requested that you bring someone to rent the room, the landlord is liable for paying you.

The landlord could have advertised so that those interested in renting the room would come. However, to save money, the landlord chooses to hire an agent. The landlord will offer you 5% after someone rents the room.

He went on to say that if the person is paying monthly, the landlord is only obligated to pay 5% of that amount for one year, not two.

The agent has no right to go back to the landlord and demand payment after a year. To emphasise this point, the commission will be 5% rather than 10%. Those that charge 10% and expect tenants to pay are in violation of the Rent Law. The landlord will pay you 5% of the tenant’s rent. As a result, an agent has no legal basis to charge both tenants and landlords 10%. It is prohibited and punished under the law.”