The Acting Rent Commissioner, Frederick Opoku, has unequivocally stated that private hostel operators in Ghana remain subject to Ghana’s rent laws, irrespective of investment levels, following a recent warning from the Ghana Tourism Authority (GTA). Speaking on the Joy FM Super Morning Show, during a discussion concerning the Rent Control Department’s crackdown, Mr. Opoku emphasized that private hostels are not outside the legal framework concerning rent regulation, regardless of the financial commitment made by operators.
He explained that the Rent Control Department possesses the legal authority to assess rents across the nation, encompassing charges imposed by hotel and hostel facilities – a power he underscored is inherent in their function. ‘Private hostels are not outside the law, simply because they are investors,’ Mr. Opoku asserted, referencing a statement issued on Wednesday, August 19th.
He further clarified that the Rent Control Department’s jurisdiction extends to assessing all rent within the country, including hostel facilities, according to Section 10 of the Rent Control Act. Mr. Opoku stressed that hostel operators cannot unilaterally decide rental rates without adhering to the law, urging them to apply for a rent assessment if they wish to operate legally. ‘Deciding how much you charge does not fall within your individual powers,’ he stated, emphasizing the necessity of seeking legal guidance from the Rent Control Department. He acknowledged that the GTA’s licenses do not inherently exempt private hostels from rent legislation.
He countered arguments suggesting a misunderstanding regarding the different regulatory bodies involved, stating that the GTA’s role primarily focuses on hotel and hostel regulations, while the Rent Control Department handles the broader scope of rent assessment. ‘Hostel regulation does not mean regulating everything about hostel operations,’ he clarified. However, he pointed out that the involvement of the GTA does not remove private hostels from the framework of rent legislation. ‘The fact that GTA licenses them does not tell them that they are not under the framework of the rent laws of Ghana,’ he reiterated.
He cited private hostels on the University of Ghana campus as an example, highlighting that some operators secured long-term leases on university land and invested heavily in constructing their facilities, and that the university’s influence on hostel prices was limited by the terms of those agreements. He asserted that the level of investment made by a hostel operator cannot be used to claim exemption from rent regulation, and that the Rent Control Department would act within the law.
He further rejected claims that private hostel operators could not be regulated due to their GTA licensing, asserting that operators must properly examine the legal framework governing their businesses. ‘It is laughable. It is out of the fact that they are ignorant about the law,’ he concluded. Mr. Opoku described the current situation as ‘laughable’, and emphasized the importance of ensuring compliance with the law and that the Rent Control Department must act decisively to uphold the integrity of the rent regulation framework.”
This article was originally reported by Adom Online.
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Source: Adom Online
