KNUST Hostel Owners Association: Rent Control Enforcement Risks Accommodation Shortage

• Private student hostel operators at KNUST have criticized the Rent Control Department's attempt to enforce price caps on student accommodation.
• Hostels operate under licensing laws regulated by the GTA, not standard tenancy laws governed by the Rent Control Department.
• The KNUST Hostel Owners Association has pointed out a specific legal exemption within the Rent Act of 1963 (Act 220) that excludes properties where rent covers board and attendance.
• Unchecked enforcement risks sparking an unprecedented student housing crisis across the nation.

Hostels operate on a licensing system, operators retain the right to inspect, clean, and maintain the facility to prevent degradation.

Private student hostel operators at the Kwame Nkrumah University of Science and Technology (KNUST) have expressed concerns that the Rent Control Department's attempt to enforce price caps on student accommodation could worsen the existing accommodation shortage. The operators argue that controlling prices is not an effective solution, as it can create artificial shortages by discouraging suppliers from operating at government-mandated rates.

According to Dr Akwasi Owusu-Bi, President and Chairman of the KNUST Hostel Owners Association, hostels operate under licensing laws regulated by the Ghana Tourism Authority (GTA), not standard tenancy laws governed by the Rent Control Department. This means that hostel operators have the right to inspect, clean, and maintain their facilities to prevent degradation.

Hostel bookings are routed directly through an official KNUST portal, and facilities exclusively house verified students. Managers are required to enforce university regulations, including enforcing the mandatory five-day evacuation rule following academic recesses.

The KNUST Hostel Owners Association has pointed out their argument that private student hostels operate under a specific legal exemption within the Rent Act of 1963 (Act 220), contending that the statute explicitly excludes properties where rent covers board and attendance, which they assert is the case for student hostels. Counsel for the operators noted that while the statute applies broadly to residential premises, its interpretation section provides an important exception.

The Association's stance is not about seeking a legal battle but rather highlighting the need for the Rent Control Department to engage with them before issuing public directives. This would help avoid unnecessary conflicts and ensure that any regulations are tailored to the specific needs of student hostels.

The private hostel operators have warned that reckless threats against private investments could spark an unprecedented student housing crisis across the nation. If the Rent Control forces them to withdraw their services, universities will face accommodation deficits. The Association is urging the government and university management to intervene and halt unauthorized enforcement actions.

Property Economist and Senior Lecturer at the Department of Land Economy at KNUST, Dr Kenneth Donkor-Hyiaman, has noted that labelling fees as 'exploitative' without proof is misleading. He emphasized the need for a nuanced understanding of the complex issues surrounding student accommodation in Ghana.

Lawyers advising universities on student accommodation should note that the Rent Control Department's enforcement actions may be unlawful, as private student hostels operate under licensing laws regulated by the Ghana Tourism Authority (GTA), and not standard tenancy laws governed by the Rent Control Department.

Source: Original reporting via GNA