Clone of The Rent Conundrum: Why tenants struggle and why change is needed

In Ghana, the issue of exorbitant rent prices and the outdated requirement for tenants to pay 12- 24 months' rent in advance has created a rent conundrum that is pushing many renters to their financial breaking point.

The current system not only places a heavy burden on tenants but also exacerbates financial instability and inequality. It is high time for a change to create a more sustainable and equitable rental system that benefits both tenants and landlords.

The Rent Control Department was introduced by the Government to address some of these issues such as landlords charging exorbitant prices of rent, increasing prices of rent when they feel like doing so and ejecting tenants without prior notice.

Although rent control is of key interest in the sector, tenants or even landlords do not really know what it means to sign the Ghana rent control tenant agreement form.

For many years, housing has been a major concern in the country. Rental homes have been an alternative for the people who have no form of housing due to their availability and affordability. However, there have been a lot of issues in the sector.

The Struggle for Tenants:

Paying the equivalent of two years' rent upfront is a major obstacle for many tenants in Ghana. This hefty financial commitment can be overwhelming, causing stress, anxiety, and in some cases, eviction for those who cannot afford it. The requirement for such a large lump-sum payment puts tenants in a precarious position, forcing them to make difficult choices between paying rent, meeting basic needs, or taking on high-interest loans to cover the cost.

The Consequences of the Current System:

The practice of paying rent upfront for two years has wide-reaching consequences for tenants. Many renters are forced to prioritize rent payments over other essential expenses, such as food, healthcare, and education, leading to a decreased quality of life and perpetuating cycles of poverty. Moreover, the pressure to come up with such a large sum of money can push tenants into debt, creating a vicious cycle of financial instability that is hard to escape.

A Better Way Forward:

Transitioning from the current yearly lump-sum payment system to a monthly rent payment system, similar to utility bills, could provide much-needed relief for tenants in Ghana. By spreading out rental payments over time, tenants would have the opportunity to manage their finances more effectively, reducing the risk of financial strain and debt accumulation. This change would also promote greater financial stability and security for renters, helping to break the cycle of poverty and inequality.

Benefits of Monthly Rent Payments:

Implementing a monthly rent payment system would bring benefits for both tenants and landlords. For tenants, the shift to smaller, more manageable monthly payments would ease financial pressure, improve budgeting capabilities, and reduce the need for high-interest loans or borrowing from others. This would lead to increased financial stability and well-being for renters, allowing them to meet their basic needs and pursue other opportunities for growth and development.

Landlords would also benefit from a monthly rent payment system, as it would provide them with a steady and predictable income stream throughout the year. By receiving smaller, regular payments, landlords can better plan and manage their finances, reducing the risk of non-payment

and ensuring a more reliable cash flow. This would create a more balanced and sustainable rental market, benefiting both tenants and landlords alike.

In conclusion, the rent conundrum in Ghana calls for a fundamental change in the way rental payments are structured. Transitioning from the outdated requirement of paying 24 months' rent in advance to a monthly payment system offers a practical and sustainable solution to alleviate financial strain on tenants, promote financial stability, and create a more equitable rental market. It is time to make this change for the betterment of all involved in the rental sector in Ghana.

By Divine Kabu Akplehey

Divinekabu1@gmail.com