The Hostel Owners Association of Ghana has issued a formal challenge to the legal framework of the Rent Control Department’s ongoing campaign against private student hostels, arguing that the enforcement measures lack a recognized legal basis under Ghana’s legislation.
The Acting Rent Commissioner has recently intensified efforts to assess hostel facilities and demand reductions in accommodation fees, particularly at public universities, sparking concerns among hostel operators. The association contends that the Rent Control laws, specifically the Rent Act, 1963 (Act 220) and the Rent Control Law, 1986 (PNDCL 138), do not encompass the regulation of hostel operations, a key aspect of student housing.
The association highlights that purpose-built student hostels are distinct from traditional residential dwellings and are therefore not subject to the scope of rent control regulations. They argue that the Rent Act, 1963, and the Rent Control Law, 1986, primarily focus on renting dwellings where rent includes meals and services. According to the association’s statement, the Rent Act, 1963, and the Rent Control Law, 1986, explicitly exclude dwellings where rent is based on meals or services.
The Rent Control Department has since intensified enforcement against student hostel operators at public universities, including those in Kumasi, threatening closure of unregistered facilities and those accused of charging exorbitant fees. The association claims this campaign lacks a legal foundation.
The association points to rising construction costs, high borrowing rates, and currency depreciation as factors driving increasing hostel fees. They also emphasized that Ghana’s rental market is characterized by information asymmetries, disadvantaging students seeking affordable accommodations.
President of the association, Bishop Dr Akwasi Owusu-Bi, stated that purpose-built student hostels are independent enterprises that provide accommodation alongside services such as security, cleaning, and management. He argued that these facilities, being commercial, do not fall under the traditional landlord-tenant framework under Ghana’s rent control laws but are regulated within the tourism and local governance framework.
“Hostels are independently classified across Ghana’s tourism, planning and local governance statutes as a licensed commercial and tourism-sector enterprise, zoned separately from ordinary residential dwellings,” he noted. He further argued that even if hostels fell under the jurisdiction of the Rent Control Department, the Commissioner could not independently enter a property to assess rent without an invitation from either party to the tenancy agreement. The association rejected descriptions of hostel owners as ‘exploitative’ and ‘criminal’, emphasizing that the Rent Act, 1963, and the Rent Control Law, 1986, provide a clear framework for rent assessment, including a requirement for application from the landlord or tenant or an interested person, not the Rent Commissioner.
The association warned that imposing rent controls in an already-constrained student accommodation market could force private operators out of the sector and worsen the shortage of accommodation for students. They cited rising construction costs, high borrowing rates, and currency depreciation as contributing factors to increased hostel fees. The association is urging for a transparent, cost-based rental index for university communities, increased investment in public student accommodation, and greater use of public-private partnerships to expand the supply of student housing.
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Source: Adom Online
