One year rent advance is fair – GREDA Executive Director backs new rent bill

The Executive Director of the Ghana Real Estate Developers Association (GREDA), Samuel Amegayibor, has endorsed the proposal to cap rent advance payments at one year under the government’s new Rent Bill.

Speaking on the ongoing debate over rent reforms, he described the proposed one-year cap as fair, noting that while landlords often require two years’ advance notice and sometimes more, where possible, such requirements place enormous financial pressure 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 significant challenge for many Ghanaians, particularly young people just beginning 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 explained that when monthly rents running into several thousands of Ghana cedis are multiplied by 12 or even 24 months, the total figure 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 pushing for reforms under a new Rent Bill to limit rent advances to a maximum of one year, introduce penalties for violations, and strengthen regulation in the rental housing sector.

The proposed reforms have sparked mixed reactions among stakeholders, but Mr Amegayibor’s endorsement signals growing support within the real estate development community for measures to ease tenants’ financial burden while promoting fairness in the housing market.

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