KNUST Hostel Owners Reject Rent Act Regulation

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KNUST Hostel Owners Association rejects Rent Act regulation of private hostels

The KNUST Hostel Owners Association has rejected moves by Rent Control officials to regulate private student hostels under the Rent Act, arguing that hostel accommodation differs from conventional landlord-tenant arrangements.

The Association says private hostels provide an important extension of university accommodation and should not be subjected to blanket rent-control measures without proper consultation with operators.

Hostel owners demand sector-specific regulation

Speaking at a press conference, President of the Association, Bishop Dr Akwasi Owusu-Bi, questioned the focus on private student hostels, arguing that rental prices in some high-end areas of the country are significantly higher.

If they want to control prices, in my own opinion, they should begin from East Legon, where prices are quoted in dollars and not in cedis, he said.

Bishop Owusu-Bi explained that private hostel operators have invested heavily in providing accommodation for students who cannot secure rooms on university campuses.

According to him, many operators financed their projects through bank loans obtained at high interest rates, while also incurring significant construction, maintenance and operational costs.

KNUST Hostel Owners Reject Rent Act Regulation Nukunya

He therefore cautioned that reducing hostel fees without considering these expenses could threaten the sustainability of private hostel businesses.

The Association stressed that it is not opposed to regulation but wants government to recognise the existing arrangements governing private student hostels.

We don’t say we don’t want to be controlled or regulated. We have a system that regulates our operation.

The Association is calling for engagement between government and hostel owners to develop a specific regulatory framework for the sector.

Lawyers question application of Rent Act

Legal counsel for the Association, Michael Gyan Owusu, argued that private student hostels may not fall within the traditional landlord-tenant relationship covered by the Rent Act.

He explained that hostels provide several additional services, including cleaning, security, electricity and other forms of support.

He also pointed to arrangements between KNUST and affiliated private hostels, where operators are required to comply with university regulations.

According to him, the arrangement is therefore closer to a boarding or licensing system for students than a conventional tenancy.

Mr Gyan Owusu further noted that the Ghana Tourism Authority licenses some hostels as tourism premises, raising questions about the extent of the Rent Commissioner’s authority over such facilities.

He argued that even where the Rent Act applies, it provides procedures for rent assessment rather than giving the Rent Commissioner unlimited authority to impose blanket charges or assessments.

Economist calls for evidence-based assessment

Property economist and researcher, Dr Kenneth Donkor Hyieman, also questioned claims that hostel operators are exploiting students.

He said determining whether a hostel fee is excessive requires an appropriate benchmark for comparison.

To be able to identify a fee as exploitative, you need to come up with a comparator. You need to come up with some index.

Dr Hyieman acknowledged that hostel fees running into thousands of cedis could place pressure on students and their families but said the cost of providing and maintaining the facilities must also be considered.

Government promises engagement

KNUST Hostel Owners Reject Rent Act Regulation

Government, however, says it will engage hostel owners and relevant institutions to ensure students are not subjected to unreasonable accommodation costs.

Minister for Youth Development and Empowerment, George Opare Addo, said he would engage the Ministry of Education and other institutions responsible for rent regulation.

We will have the necessary conversations with owners of hostels, and we will make sure that prices are reasonable for the dear students of this country.

He also disclosed that the Ministry of Education is engaging private developers to construct additional affordable student hostels on university campuses.

Hostel owners warn of possible consequences

The KNUST Hostel Owners Association has warned that a prolonged dispute over hostel fees could affect university operations.

Bishop Owusu-Bi said private hostel owners could withdraw their services because the facilities are privately owned.

If we decide to close our hostels, how are the universities going to operate?

He also noted that private hostels operate at different price levels and offer varying services, while some students continue to choose higher-priced facilities.

The Association is therefore demanding dialogue with government, a sector-specific regulatory framework and an end to what it describes as blanket attempts to control private hostel fees.

Government, meanwhile, says it will continue to pursue affordable student accommodation while ensuring that applicable laws and regulations are respected.