One-year rent advance is fair and necessary, says GREDA Director

The Executive Director of the Ghana Real Estate Developers Association (GREDA), Samuel Amegayibor, has thrown the weight of the association behind the government’s proposed Rent Bill, describing the planned cap on rent advances at one year as a fair and necessary intervention.

In an interview addressing the ongoing national debate over rent reforms, Mr. Amegayibor acknowledged that while landlords often prefer two years’ advance payment—and sometimes more when the opportunity arises—such demands place an unsustainable financial burden 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 emphasized that the struggle to mobilize large lump sums for rent is particularly acute for young Ghanaians entering the workforce. He called for a spirit of mutual understanding between property owners and tenants to alleviate the pressure.

“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 explained.

Highlighting the arithmetic of the current rental market, he noted that when monthly rents, which often run into several thousand Ghana cedis, are multiplied by 12 or 24 months, the total becomes prohibitively expensive for the average household. “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 pivotal moment as the government pushes forward with the new Rent Bill. The proposed legislation seeks to limit rent advances to a maximum of one year, introduce strict penalties for violations, and strengthen the regulatory framework governing the rental housing sector.

While the proposed reforms have elicited mixed reactions from various stakeholders, Mr. Amegayibor’s endorsement signals growing support from within the real estate development industry for policies aimed at easing the financial strain on tenants and promoting greater fairness in the housing market.