In Ghana, Unlawful Agents Extort Unsuspecting House Hunters

Despite Ghana’s rent regulations protecting prospective tenants from paying illegal fees, some unscrupulous rent agents are extorting many Ghanaians and, in some cases, foreign nationals. According to Section 22(1) of the Rent Act, 1963 (Act 220), rent agents in Ghana must charge landlords for services they render to them and not the person searching for a room to rent.

“It shall be the landlord’s duty to pay the agent’s commission not exceeding five per cent of the annual rent,” the Act states, inferring that agents are only mandated to charge a commission of 5% of the total rent for one year from landlords.

However, the lack of law enforcement by the Rent Control Department of the Ministry of Works and Housing has created an avenue for rent agents to demand exorbitant, illegal fees from people seeking houses to rent, even before showing them where vacant rooms are.  

Further checks revealed that before an agent would show a prospective tenant a room to rent, he or she would have to cough out at least GHS100.00 as a non-refundable viewing fee. This means whether the person likes the room or not, the money is gone. 

Comfort Mensah, a public servant in Accra, recounted that she was asked to pay GHS 420.00 as an extra fee after paying her one-year rent fee. The amount was the 10% commission on the GHS 4,200.00 she paid for a single room. 

Before viewing the room, she had to pay 100 Ghana cedis. Many agents in the city charge between 70 and 150 cedis simply to show prospective tenants a room, whether or not they rent it.

“Honestly, this is very bad, all my money is gone. The rent control people, I don’t know what they are doing,” she bemoaned. 

When she resisted and refused to pay the illegal 10% commission, the landlord refused to rent her the room. Desperate and frustrated, she obliged and paid the GHS 420.00.

Rent prices continue to rise, with a single room costing between 250 and 1,200 cedis per month, depending on the location. This leaves tenants with little control over their accommodation situation. Worse still, agents use threats to ensure tenants pay these inflated fees. 

Victor Asamoah, a worker in Accra, was forced to pay the full 10% commission or face eviction after he had packed in. “I couldn’t afford it, but I had no choice,” he said.

Some Nigerian traders at Tip-Toe Lane near the Kwame Nkrumah Circle, also shared similar experiences of extortion by rent agents when they sought rooms to rent. 

The ordeal of Mensah, Asamoah and some Nigerian traders mirrors the struggle of many Ghanaians and foreigners seeking rooms to rent in the busy capital of Accra.

A rent agent, Kwame Sakyi, justified why they charged the fees. Asked why agents still charge tenants a 10% commission instead of the lawful 5%, he said the agents work for both landlords and tenants and that’s what they also do for a living. 

“This is our life, this is what we do for a living because there are no jobs,” he said.

He said people can seek rooms through other means if they wish to avoid the illegal fees.

Afriyie Amoako Mensah has been in the real estate business for over eight years and is very familiar with how agents operate. She said real estate companies pay commissions to agents for every transaction; hence no other cost is supposed to be transferred to the clients.

However, due to the weak monitoring and supervisory role of the Rent Control Department, agents double-charge and get away with it.

“Legislative measures are crucial for accountability. The enactment of an Agency Act is needed to address gaps in rent agent regulation. Establishing a regulatory body and ensuring enforcement would promote accountability and transparency.

“With the right actions, the government can make renting fairer and ease the burden on tenants seeking decent housing. In a city where many struggle to find affordable housing, it’s time for the government to act,” she charged.

The Rent Control Department in Ghana is responsible for ensuring that renting regulations are strictly adhered to.

Emmanuel Hovey Kporsu, a senior staff of the Rent Control Department, stressed that by law, agents can only charge a 5% commission on the rent for one year, paid by the landlord – not the person seeking to rent. 

Mr Kporsu said agents who are reported for charging unlawful commission would be arrested and prosecuted and urged the public to report such people to the authorities for the necessary action to be taken.

This story was funded by the Centre for Journalism Innovation and Development (CJID) through its Empower Women in Media Cohort project.