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Government proposes one year rent advance

August 20, 2018
in Uncategorized
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Cabinet has begun deliberations on a revised rent law which will peg rent advance at one year instead of the two or more years being claimed by some landlords in the country.

Critics of the trend have, over the years, bemoaned the exorbitant rent advance charged from prospective tenants.

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Currently, rent for accommodation is agreed upon by landlords and their tenants.

However, the amended law will place such powers in the hands of the Rent Control, who will set a ceiling on the rents chargeable by landlords.

Works and Housing Minister, Samuel Atta Akyea speaking to reporters explained the rationale behind the law, thus: “We are the pro-poor, people do not have the money, their income levels would not permit huge sums of money in terms of rent advance, so, it should stay at six months, but somebody will say do you want real estate developers to be rewarded? Do you want to encourage them that they will also have some money by way of return on investments? So, are we going to strike a middle ground?”

“Six months is what the existing law is saying, but with the new law, there is a proposition of one year. Would it not be also an arrangement for real estate developers to be encouraged to roll out more houses?” he questioned.

“So, this is what we are looking at, but the ultimate responsibility as to what will be good for the people of Ghana will not rest with Cabinet, we need to come to parliament for them to take a decision as to what will be good for our brothers and sisters who do not own houses.”

Source: ClassFMOnline.com

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