Renting in Accra can be a daunting challenge, especially for the youth looking to establish their independence.
The hurdles are numerous, from steep room prices to hefty advance payments, making it nearly impossible for many to move out of their parents’ homes.
While the constitution provides safeguards, renting in Accra remains subject to challenges such as high rent prices, inadequate housing supply, tenant-landlord disputes, and greedy agents set out to prey on vulnerable tenants.
In Accra, even a basic single-room self-contained unit, which many consider a modest start for young adults, is far from affordable.
These rooms could cost as much as GH₵ 1,000 per month despite the average worker earning about GH₵ 1,200 monthly.
Also, landlords in Accra typically demand large upfront rent payments, often requiring one to two years’ rent advance.
Even the more lenient landlords who accept six months’ payment upfront present an insurmountable financial challenge for most young people.
Then comes agents in the renting process, adding another expense layer to add salt to injury.
These agents charge approximately 10% of the total rent as their fee for helping find a rental.
This means if you rent a room that costs GH₵100o for two years, it will cost GH₵24000 in total, and the agent will pocket GH₵ 2400 as a 10% commission for helping you access a room.
This is compounded by a viewing fee ranging from GH₵50 to GH₵100 per every facility the agent introduces to you.
Depending on the kind of rental you are interested in, the cheapest viewing fee will be GH₵ 100, further compounding your woes and increasing the overall cost of securing a place to lay your head.
This can significantly inflate the initial amount of money needed to move into a new place, discouraging many from pursuing rentals through agents.
The high costs associated with renting inhibit financial independence and contribute to a broader socio-economic issue problem for young adults.
The illegal practice has been normalised, and tenants are helpless while the authorities in charge have gone to sleep.
The 1992 constitution of Ghana implies that rental agents cannot charge a landlord or a tenant 10% of the total rent as their fee for helping find a rental; rather, the most an agent can charge is 5% of the total one-year rent fee.
Section 25 (c) ACT 220 (The Rent Act) states, “A person who, in respect of any premises being or acting as an agent or broker, demands or receives for services in connection with the procuring of a grant, renewal, or an assignment of a tenancy, a consideration which exceeds five per cent of the recoverable rent for one year of those premises commits an offence and is liable on conviction by the Rent Magistrate to a fine not exceeding two hundred penalty units to a term not exceeding six months or to both the fine and the imprisonment.”
Currently, one penalty unit is GH¢12.00, which means agents who flout this law could be charged by the court to pay GH¢2400 and spend six months in prison or do both.
A 2024 Ghana Housing Profile study commissioned by the Ministry of Works and Housing revealed that several Ghanaians are left vulnerable and exploited by landlords and house owners who charge high rents and excessive rent advances.
According to the lead consultant of the study, Professor Clifford Amoako, the situation is more eminent in urban areas. This is largely due to the non-functionality of systems in the housing sector despite many laws.
Speaking at a validation workshop on the study in Accra, Professor Amoako said Ghana has a regulatory environment which should address these challenges.
However, the institutions and systems put in place are not working.
“There are so many laws, so many regulations, and so many institutions involved, but the coordination has been weak, and as a result, we have an exploitative private sector that is exploiting the average renter and making life difficult for them.
“What this means is that people still pay two or three years rent advance, which is so much money. It also means that people are using their own money to furnish and complete homes and still paying advance to landlords.
“So the institutions and regulatory frameworks are not really working, and therefore, the average tenant or worker is always faced with exploitation”.