“Landlords have acted illegally for a long time”: Rent Control cracks down on hostel operators

Ghana’s rent regulator has defended a directive targeting private hostel operators, insisting the move is lawful and necessary to curb student exploitation while maintaining a balance with investor interests.

Speaking on the Asaase Breakfast Show on Wednesday (20 May), Acting Rent Commissioner Frederick Opoku said the intervention by the Rent Control Department followed a petition and on-the-ground assessments that revealed worrying practices in the student accommodation sector.

“We are acting within the confines of the law,” Opoku said, citing provisions under Ghana’s Rent Act that mandate landlords to consult the department before adjusting prices.

Allegations of long-standing non-compliance

Opoku accused some hostel operators of flouting legal requirements for years, arguing that price adjustments had often been imposed arbitrarily without regulatory approval.

“They have acted illegally for a long time… landlords must consult rent control so that prices are fair to the landlord, the operator and the tenant,” he said.

The directive effectively freezes arbitrary fee increases and requires property owners to undergo formal assessment before setting rents. Authorities say this will involve collaboration with surveyors to determine fair pricing based on investment costs and maintenance realities.

Pushback over market interference

The intervention has sparked debate over state involvement in a largely private market, with operators citing rising costs — including utilities, taxes and inflation — as justification for higher fees.

But Opoku dismissed suggestions that the government was overreaching.

“This is a country governed by law… you cannot at will charge whatever you like simply because you are an investor,” he said, arguing that unchecked pricing amounted to exploitation of students, many of whom have limited bargaining power.

Balancing regulation and investment

Concerns have also been raised about whether tighter controls could deter private investment in student housing, especially given Ghana’s accommodation deficit around tertiary institutions.

Opoku rejected that argument, insisting that transparency and lawful pricing would not undermine the sector.

“If proper assessments are done, you will realise the figures will drop but still remain fair and sustainable,” he said.

Enforcement and new reporting system

To strengthen enforcement, the Rent Control Department plans to roll out a digital platform enabling students nationwide to report illegal rent hikes and submit evidence such as receipts.

Operators found in violation could face prosecution, with penalties determined by the courts. Sanctions may include fines or closure of facilities.

“We will apply the full rigours of the law,” Opoku said.

Government backing and reforms

The commissioner said the initiative forms part of broader reforms backed by President John Mahama’s administration to revitalise rent regulation.

He noted that the recent appointment of a substantive rent commissioner — the first in decades — signals renewed political commitment to enforcing housing laws.

According to Opoku, short-term measures such as the current directive will be followed by medium- and long-term reforms over a three-year horizon, including nationwide property assessments and possible pricing benchmarks.

The debate over hostel fees, he added, goes beyond rent, touching on access to education, consumer protection and the broader cost-of-living pressures facing Ghanaian families.