Business News of Monday, 27 April 2026

Source: www.ghanaweb.com

Rent Control cracks down on hostel operators over exploitative charges

The Rent Control Department has announced a nationwide compliance exercise targeting hostel operators around tertiary institutions following growing concerns over exploitative pricing, arbitrary rent increases, and excessive rent advance demands.

The move follows a formal petition from the National Union of Ghana Students (NUGS) on April 23, 2026, calling for urgent intervention over hostel rent practices affecting students across the country.

Students in several university communities have, in recent months, complained about rising accommodation costs as demand for hostel spaces continues to exceed supply.

In a statement issued on April 27, 2026, the Department warned that landlords and hostel operators who flout tenancy regulations will face sanctions, including possible prosecution.

“The concerns raised, particularly on arbitrary pricing, excessive rent advance demands, and non-compliance with tenancy procedures, are of significant public interest and fall within the regulatory scope of the Rent Act,” the statement said.

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According to the Department, a nationwide inspection exercise will soon begin in major tertiary education zones to ensure hostel facilities comply with existing rent laws.

It explained that the inspections are intended to prevent operators from exploiting students through inflated charges and unlawful rent advance payments.

The Department further reminded landlords that the law places clear restrictions on the amount of rent advance that can be demanded from tenants.

“Landlords and hostel operators are hereby reminded that the law restricts the collection of rent advance beyond permissible limits. Any violation will attract sanctions, including prosecution under Act 220,” the statement cautioned.

Beyond enforcement, the Department disclosed plans to develop standardised guidelines to regulate hostel pricing and tenancy agreements in consultation with student groups, universities, and property owners.

It added that a national stakeholder dialogue will also be organised to discuss reforms aimed at protecting tenants while ensuring sustainable housing delivery in tertiary communities.

The Department further announced plans to introduce a dedicated complaints mechanism to enable students to report rent-related abuses without fear of victimisation.

It has therefore urged hostel operators and property managers to regularise their operations, stressing that ignorance of the Rent Act will not be accepted as a defence.

SO/MA