Explore solutions to ease burden on tenants, property owners - Developer advocates

Stakeholders in the real estate sector have been urged to explore innovative solutions that take into consideration the interests of both property owners and tenants to ensure the sustainability of the housing sector. 

This is because the growing trend of rent increments and the practice of property owners demanding one to two years' rent in advance was not sustainable.

The Chief Executive Officer (CEO) of Richardson Group of Companies, a diversified conglomerate with interest in the real estate sector, John Andrew Richardson, explained that while property owners were justified in seeking to protect their investments, the practice of demanding one to two years' rent in advance was creating an unsustainable burden for many tenants.

That, he said, disproportionately affected low- and middle-income earners, who often struggle to raise such large sums of money.

“This development is placing significant financial strain on tenants across Ghana, particularly in urban areas where housing demand continues to outpace supply.

“We need a balanced approach that considers the interests of both property owners and tenants,” Mr Richardson, who is also the founder of Jabirg Property Group, a real estate company specialising in the development of affordable housing solutions in the country, said. 

Context

The country has witnessed a sharp increase in rental prices, driven by rising inflation, escalating construction costs, and a growing population. 

According to recent industry reports, rent prices in major cities, such as Accra and Kumasi, had surged by an average of 20 to 30 per cent over the past year. 

This upward trend has been further exacerbated by property owners requiring tenants to pay one or two years’ rent upfront—a practice that has become increasingly common in the real estate market.

In February this year, the Member of Parliament (MP) for Ketu North, Edem Agbana, echoed these concerns on the floor of Parliament.

He urged the Rent Control Department to enforce existing laws that prevent landlords or homeowners from demanding rent advances beyond six months.

Despite these laws, Mr Richardson said homeowners had remained adamant, largely because there were virtually no repercussions for violating rent regulations. 

Stakeholders

Mr Richardson said it was the collective need of stakeholders in the sector to ensure that housing remained accessible and affordable.

“At Jabirg Property Group, we are exploring innovative solutions, such as flexible payment plans and partnerships with financial institutions, to ease the burden on tenants while safeguarding the interests of property owners,”   he stated.

Mr Richardson further called for collaboration between the government, private sector and other stakeholders to develop policies that promote affordable housing and regulate rental practices.

“As we navigate these challenging times, it is crucial that we work together to create a housing market that is fair, transparent and equitable for all,” he stressed.