GREDA Backs One-Year Rent Advance Cap under New Rent Bill,
The Executive Secretary of the Ghana Real Estate Developers Association (GREDA), Samuel Amegayibor, has endorsed the government’s proposal to cap rent advance payments at one year under the new Rent Bill.
Contributing to the ongoing debate on rent reforms, Mr. Amegayibor described the proposed one-year cap as fair. He acknowledged that landlords commonly demand two years’ rent in advance and sometimes more but noted that such requirements impose significant financial strain on tenants.
“For me, I think the one-year rent advance is fair. Landlords normally take two years’ advance now and more if they have the opportunity. But they have to appreciate the fact that it doesn’t come easy for people to raise those huge funds just to settle rent,” he stated.
Mr. Amegayibor stressed that raising large lump-sum payments to cover multiple years of rent is a major challenge for many Ghanaians, particularly young professionals at the start of their careers.
“It’s a mutual consideration between parties. If they understand the need to limit or not demand too much at a time, I think it will go a long way to help, especially the young ones who have just started life,” he said.
He further explained that when monthly rents running into several thousands of Ghana cedis are multiplied by 12 or even 24 months, the resulting amount becomes excessively high for most households.
“When you charge several thousand a month, multiplied by 12 and 24 and all that, I think it is a bit on the high side for people,” he added.
His comments come at a time when the government is advancing reforms under a new Rent Bill aimed at capping rent advances at a maximum of one year, introducing penalties for violations, and strengthening regulation within the rental housing sector.
Although the proposed reforms have generated mixed reactions among stakeholders, Mr. Amegayibor’s endorsement signals growing support within the real estate development community for measures designed to ease tenants’ financial burden while promoting fairness in the housing market.
