The Ghana Real Estate Developers Association’s (GREDA) Executive Director, Samuel Amegayibor, supports the idea of limiting rent advance payments to one year under the government’s new Rent Bill. Addressing the current discussion regarding rent restrictions, he termed the proposed one-year restriction reasonable, noting that while landlords frequently demand two years’ notice or more when feasible, such demands put a tremendous financial burden on tenants.
“For me, I believe the one-year rent advance is reasonable. Landlords now demand two years’ rent in advance, with the option of increasing it if the occasion arises. But they must realize that it is not simple for people to raise such large sums simply to pay rent.”
Mr Amegayibor emphasised that getting big lump sums to pay many years of rent is a tremendous problem for many Ghanaians, especially young people just getting started in their careers.
“It’s a reciprocal agreement between parties. I believe that if they recognise the necessity of restricting or not demanding too much at once, it would go a long way toward assisting, particularly the youngsters who are just beginning life,” he said. He argued that when monthly fees in the thousands of Ghana cedis are multiplied by 12 or even 24 months, the total cost becomes prohibitively expensive for the majority of households.
“When you charge several thousand per month, multiplied by 12 and 24 and all that, I believe it is a bit costly for people,” he said. His remarks come as the government is pushing for amendments to a new Rent Bill that would restrict rent increases to a maximum of one year, impose fines for infractions, and tighten regulation of the rental housing sector.
The planned changes have received a mixed response among participants, but Mr. Amegayibor’s endorsement indicates growing support within the real estate development community for initiatives that would lessen tenants’ financial strain while promoting fairness in the housing market.
Source: myjoyonline.com