Introduction
The rent control crisis remains an ongoing issue in numerous countries worldwide. Rent concerns vary by country; with even industrialized nations facing rental issues. According to Abraham Maslow’s theory of needs, shelter is classed as one of the most essential wants of humans.
The World Health Organization’s Sustainable Development Goals prioritize affordability, high-quality housing, security, and the eradication of homelessness, as well as making the environment and human settlement inclusive, secure, and sustainable. The World Health Organization’s primary aim is for everyone to have access to safe and reasonably priced housing by 2030, with affordable housing serving as a weapon against poverty. (Globalgoals, 2015)
Ghana faces similar rental challenges as other countries, and these concerns have become a significant source of distress for many Ghanaians, especially the youth. Substandard housing, excessive cost of rent, and advance payments are some pressing issues that require prompt attention in the country.
An outline of the Ghanaian Rent history, the 1963 Rent Act(220), the rent control system’s shortcomings , and suggested institutional and policy changes are all covered in this article.
Brief History of Rent control in Ghana
Ghana’s rent system has its roots in the defense legislation of World War II, which was implemented in 1942 and forbade landlords from raising rent above a certain amount. The Rent Control Ordinance of 1947 was created to address rent difficulties during World War II by shielding tenants from unjust evictions and exploitation. The 1960 Rent Control (Amendment) Act’s; Act 3, updated standard rents to reflect those that were in effect on July 1, 1960.
In the year 1963, the rent Act 1963 was introduced to govern tenancy agreement between tenants and landlords. This act established the Rent Control Department (RCD), specified the rights and obligations of both landlords and tenants, specified the conditions under which landlords may retake possession, and prohibited the request for premiums or excessively high rent in advance.This period saw the introduction of numerous decrees and laws to address certain problems, such as the improvement of existing legislation and the introduction of tax measures.
Under the regime of the Provisional National Defense Council, the Rent Control Law, 1986 (PNDCL 138) was created. It created Rent and Housing Committees that were in charge of determining recoverable rents and resolving conflicts. Since the 1986 Act, no major significant legislation has been passed, which has led to increasing calls for change because several of the law’s provisions have become outdated.
Currently in Ghana, the legislation from 1963 and 1986 still governs the Rent Control Department’s operations today. A number of recommendations have been made to change parts of the laws’ outdated sections. These ideas also seek to institutionalize monthly rent payments in order to lessen the plight of the people, in addition to giving the Rent Control Department more authority to impose regulations and set rent controls.
Overview of the Ghana’s Rent Act 1963
Landlord-tenant interactions are governed by the Rent Act 1963, Act 220, which outlines the rights of renters, including the right to privacy, protection from arbitrary eviction, and the right to rent increases, among other things as specified by the law. Notifying tenants of rent increases, providing a safe and livable property, adhering to the correct eviction procedures, and many other obligations are all spelled out in detail.
More information about the rent and tenancy clause is given, along with advance payment limitations. It specifies that landlords are not allowed to demand more than six months’ rent in advance because doing so is illegal and subject to penalties. Payback for improvements: If a tenant requests permission from the landlord to make improvements to the property, he must get payment, and the agreement must be documented.
The Act also covers procedures for eviction and recovery of premises; it outlines the grounds on which a court may order the recovery of a property or the eviction of a tenant and declares that it is illegal for a landlord to forcibly evict a tenant without following the required procedures.
In addition to listing the offenses and penalties that both parties must pay to maintain peaceful and harmonious living, it outlines the grounds for eviction, which include using the property for unlawful purposes, causing damage to the property, not paying rent, and causing a nuisance, among other things that are considered illegal.
Unlawful Advance Payment
Ghana is estimated to have a housing shortage of about 2 million units, a number that is growing as a result of the country’s fast urbanization and population expansion (Ghana Statistical Service, 2021). Due to this shortfall, landlords now frequently demand upfront rent payments, usually for a period of six months to a year. The lack of available housing options, which gives landlords power over tenants, is the main cause of these behaviors. Housing supply has not kept pace with the increasing demand for housing, resulting in a large deficit, in turn escalating costs of renting, and proliferating slums and informal settlements
Approximately 41% of Ghanaians rent, and the practice of paying rent in advance makes rental housing challenging, particularly for urban dwellers. The term “advance rent payment” refers to the one-time payment of rent, often made at the start of the rental cycle. (Okrah et al..,2025)
In Ghana, landlords typically require rent payments in advance of two (2) or more years at the commencement of the tenancy. Advance rent payment is detrimental to the urban poor, who may not have such lump sum amounts and may have to borrow. It reduces the cost and flexibility of renting since low-income people struggle to save enough money to pay rent in advance. (Yanbini et al., 2025).
The Rent Control Act of 1963 (Act 220) established a defined norm for landlord-tenant relations by requiring landlords to seek no more than six months’ rent in advance. The Act governs the method of rent payment. This Act excludes first-time renters from the definition of tenant. Individual renters who already live in a rental housing unit are considered tenants. By law, first-time renters may be compelled to submit an advance payment, but it must not exceed six months before being granted rental accommodation. Tenants must pay monthly for the use of the property; hence the landlord cannot demand rent in advance. This benefits tenants by making rental housing more affordable.
The Section 25 Subsection 5 of the modified Rent Act 1963 (Act 220) made it clear: any landlord discovered asking more than the required amount of rent in advance could face harsh repercussions, fines of up to 500 penalty units, or possibly imprisonment for up to two years.
However, despite these clear regulations, the reality on the ground is different. Landlords still continue to request for advance rent payments and tenants in their quest to a secure roof over their heads are compelled to accept these outrageous demands.
Advance rent demands pose a serious threat to tenants, especially those whose sources of income are low. This pushes them to take loans with high interest to meet rent demands, and their inability to pay these loans runs them into debt leading to psychological trauma, making them vulnerable and susceptible to possible eviction by the landowners. (World Bank, 2015)
Enforcement Crisis
Ghana’s rental housing market operates without a detailed national housing policy, despite its long history of private rental dominance. Although housing concerns occasionally appear in political manifestos, implementation remains weak,leaving rental housing development largely disorganized. (researchgate, 2025)
Enforcement of the rent control regulations has become a major issue for the Country, despite the stipulations being explicitly stated in these laws. The laws are difficult to implement because of an imbalance between supply and demand. Because there are more tenants in the system than rental properties, giving the landlords more power to charge outrageous prices. Because it is difficult for tenants to find other housing, they fall victim to some of the illegal actions of the landlords in their attempt to secure a roof over their heads.
Additionally, the majority of renters live in constant fear of being evicted, which is why the majority of complaints are unreported to the rent control agency. Enforcement of the law is a significant issue in addition to the fact that most enforcement agencies are overworked and lack the funds, personnel, and resources necessary to look into every complaint because of the high demands of the market.
Effects on Affordability of Urban Housing
Unlawful advance payments represent a formidable barrier to housing affordability. Primarily, they increase housing costs; landlords who solicit illicit advance payments contribute to the escalation of rental prices, particularly in the absence of rigorous enforcement mechanisms, which allows them to raise rents without scrutiny. This practice further intensifies rental expenses, making access to affordable housing increasingly elusive for tenants. Moreover, those who assent to the landlords’ demands inadvertently elevate market expectations, culminating in the displacement of low-income families.
As landlords impose exorbitant fees and insist on advance payments, access to affordable housing becomes progressively scarce. Individuals unable to meet these financial demands are compelled to vacate their communities, resulting in profound social displacement.
Additionally, this practice dissuades long-term investment. Landlords who engage in advance payment schemes tend to prioritize short-term profit-generating ventures over investing in sustainable, long-term projects. Investors or developers operating within legal confines may also be deterred from augmenting the supply of affordable housing upon witnessing the prevalence of advance payments.
The implications extend to the economy at large; this practice significantly undermines the disposable income of low-income earners, complicating their ability to secure essential necessities. Consequently, this decline in financial capacity adversely impacts the operations of businesses nationwide.
Furthermore, aspiring homeowners encounter considerable obstacles as they strive to accumulate sufficient capital to establish their own residences.
Reforms in Institutions and Policies
Since the colonial period, successive administrations have attempted a variety of policies and measures to address the country’s rental difficulties. Attempts by successive governments have failed to fix the existing gaps in the rent industry. To overcome these difficulties in Ghana’s rent sector, an overhaul is required, which can be accomplished through reforms to government policies and institutions.
The Ghanaian government must enact comprehensive policies targeted at boosting the supply of affordable homes in order to overcome the housing gap. The creation of public-private partnerships (PPPs) to encourage investment in housing development is one possible policy. The government can build affordable homes by working with private developers to pool resources and expertise.
The government should also think about offering subsidies or tax benefits to developers who concentrate on creating affordable housing. More building projects that address the requirements of low-income families might be encouraged by this strategy. Additionally, the implementation of a housing finance system that provides first-time home buyers with low-interest loans could promote home ownership and lessen dependency on rental housing.
Furthermore, the Rent Law 1963 (Act 220) is obsolete and should be reviewed immediately to reflect current happenings in the Country, even though a lot of proposals have been submitted by people to parliament concerning its amendments. Parliament must expedite the amendment procedures since this has become long overdue.
Additionally, decentralizing the Rent Control Department and establishing more regional and local offices to handle rent related cases, would allow for immediate response to complaints by the tenants and landlords. Decentralizing operations of the Rent Control Department would help reduce bureaucracies and make the institution more robust in its operations. Government should equip the various decentralized units with the requisite requirements needed to function effectively; by providing adequate funding, recruiting qualified and talented individuals, and organizing thorough training for existing staff.
Finally, organizing educational and sensitization programs, which may be in the form of community or public engagements, purposefully to educate the general public about rent control rules, their rights and obligations under the law, would promote a stress-free renting environment.
Rent issues must be prioritized in Ghana in order to reduce homelessness, because an end to homelessness means an end to street-ism, a decrease in criminality, a healthier labour workforce, and a conducive climate for a better Ghana.
Reference
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Centre for Affrodable Housing Finance Africa (2025), Rent Act 1963 Act(220)
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Research Gate, 2025. Market dynamic and institutional challenges in Urban Rental housing. Retrieved from http://researchgate.com
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