Business News of Tuesday, 2 June 2026

Source: www.ghanaweb.com

'Six-month rent advance limit unrealistic' - Ghana Landlords Association

According to him, many Ghanaians remain unaware of the provisions of the Rent Act According to him, many Ghanaians remain unaware of the provisions of the Rent Act

Chairman of the Ghana Landlords Association, Apostle Eric Odame Darko, has argued that enforcing the six-month rent advance limit without addressing broader challenges in Ghana’s housing sector could create difficulties for property owners.

Speaking in a video shared on X by The1957News on Monday, June 2, 2026, Darko said the practice of collecting one- or two-year rent advances has evolved over time due to challenges such as tenant defaults, rising construction costs, and difficulties in recovering rent arrears.

According to him, many Ghanaians remain unaware of the provisions of the Rent Act, despite the law having existed for decades.

“The only problem we have is the approach. We are talking about a law that has not been enforced since 1963, and many people are ignorant about it,” he argued.

His comments come amid renewed efforts by authorities to enforce rent regulations, particularly provisions that restrict landlords from demanding rent advances beyond the legally permitted period.

Darko maintained that while the collection of two-year rent advances may be contrary to the law, the practice emerged as a response to realities within the rental market.

“Fine, it’s not legal, but it was also initiated by a series of events. Landlords have had challenges recovering rent from tenants who default on payments,” he stated.

He explained that some property owners are often forced to pursue lengthy court processes to recover rent arrears from tenants, a situation that discourages many landlords from accepting shorter rent advance periods.

“Sometimes the landlord has to take the tenant to court, and it takes months before the rent arrears are recovered. Many landlords simply do not want that stress,” he said.

According to him, data from the Rent Control Department shows that both landlords and tenants frequently resort to legal action over tenancy disputes.

“If you do your research, you will realise that in 2023, the cases that went to Rent Control were more than 20,000. Out of that, over 12,000 involved landlords and more than 9,000 involved tenants,” he noted.

He also attributed the issue to changing housing preferences among tenants, arguing that many prospective renters now demand modern facilities that require significant investment from landlords.

“Tenants no longer want old compound houses. They want self-contained apartments, POP ceilings, private washrooms, and other modern facilities. Landlords are investing to meet those demands,” he said.

He further indicated that many property owners depend on bank loans to construct and upgrade houses, making it difficult to operate under short rent advance periods.

“Most landlords take loans to improve their properties. The banks will not give them ten years to repay those facilities, so they are under pressure to recover their investments within a shorter period,” he explained.

However, he urged greater public education and broader stakeholder engagement to address the underlying issues in Ghana’s rental housing market.

“We need education and engagement. If we want to solve the rent advance issue, then we must also address the realities facing both landlords and tenants,” he stressed.



ANAS/MA