The Executive Director of the Ghana Real Estate Developers Association (GREDA), Samuel Amegayibor, is all for the government’s plan to cap rent advance at just one year under the new Rent Bill, and he says it’s only fair.
Weighing in on the ongoing rent reform debate, Mr. Amegayibor didn’t hold back. He pointed out that while many landlords currently demand two years’ rent upfront and sometimes even more when they can, that practice puts serious financial strain on tenants.
“For me, I think the one-year rent advance is fair. Landlords normally take two years’ advance now and more if they have the opportunity. But they have to appreciate the fact that it doesn’t come easy for people to raise those huge funds just to settle rent,” he said.
He stressed that coughing up lump sums covering multiple years of rent is no small feat for most Ghanaians, especially young people just starting in their careers and trying to find their footing.
“It’s a mutual consideration between parties. If they understand the need to limit or not demand too much at a time, I think it will go a long way to help, especially the young ones who have just started life,” he added.
Breaking it down further, Amegayibor explained that when monthly rent, often running into several thousands of Ghana cedis, is multiplied by 12 or even 24 months, the final figure becomes overwhelming for the average household.
“When you charge several thousand a month, multiplied by 12 and 24 and all that, I think it is a bit on the high side for people,” he noted.
His comments come as the government pushes ahead with reforms through the new Rent Bill. The proposed changes aim to cap rent advances at a maximum of one year, introduce penalties for violations, and tighten regulation in the rental housing sector.
While reactions to the reforms have been mixed, Mr. Amegayibor’ s backing signals growing support within the real estate development space for steps that could ease the financial pressure on tenants and bring more balance to Ghana’s housing market.
