PROSPECTS AND CHALLENGES OF RENTAL HOUSING IN GREATER ACCRA

REGION

BY

DZANGMAH, HENRY TETTEH

(B. Ed Social Studies)

A Thesis submitted to the School of Graduate Studies,

Kwame Nkrumah University of Science and Technology
In partial fulfillment of the requirements for the degree of

MASTER OF SCIENCE
IN DEVELOPMENT POLICY AND PLANNING

Department of Planning

College of Architecture and Planning

June, 2012
 CERTIFICATION
I hereby declare that this submission is my own work towards the M. Sc in Development
Policy and Planning and that to the best of my knowledge, it contains no material previously
published by another person nor material which has been accepted for the award of any other
degree of the University, except where due acknowledgement has been made in the text.

Dzangmah, Henry Tetteh ………………….. ……………..

(PG 2001408) Signature Date

Certified by:

Prof. S.E. Owusu …………………… ……………..

Supervisor Signature Date

Certified by:

Dr. Imoro Braimah …………………… ……………

Head of Department Signature Date

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 ABSTRACT
Rental accommodation has usually been associated with low income households but it has
also become the main form of housing for middle-income households and new urban
residents of all income levels (Salmen, 1987). Research has shown that renting and sharing
clearly is a feature of the earlier stages of the life cycle. Tenants tend to be younger than
owners and are often single: students, recent migrants, simple wage-workers, factory workers
or single professionals (UNCHS, 2003:2). With an urban population of 43.8 per cent in
Ghana according to the 2000 Population Housing Census and still rising, the challenge of
providing accommodation-a basic necessity for the urban population cannot be ignored or left
to nature particularly that of rental housing. Data (1996) said ‘to ignore rental housing given
that half of the population are living in these dwellings is simply being irresponsible’. Despite
attempts made by governments of Africa immediately after independence in the early 1960s
to provide affordable housing to the citizenry to increase the level of homeownership, renting
is on the ascendency in several countries.

The study therefore sought to find out the state of rental housing in Greater Accra Region
(GAR), who the landlords and renters are and the prospects and challenges of rental housing
in the region. Geographically, the study covered Greater Accra. This is because from the
2000 Population Housing Census (GSS, 2005), the most urbanized region is GAR and since
rental housing is more prevalent in the urban area, the choice of the region will be useful for
generalization of findings. Explanatory research design was used for the study. The choice of
explanatory research approach for this study was influenced by the goal of the study; to seek
a better understanding of the current state of rental housing in Ghana as well as what
influences rent charges and rental choices. The study employed both probability and non-
probability sampling techniques. Although rental housing is a neglected feature, it has the
potential of boosting the revenue base of the nation. It must therefore be tapped.

The study concluded that, the major challenge confronting rental housing in Ghana is the
neglect of the sector by government. This neglect has affected the effective and efficient
functioning of the sector which has the potential of helping to address the housing need of the
nation while providing income to the individual and the nation.

ii
 ACKNOWLEDGEMENT
I am most grateful to the Almighty God for His Grace and Mercy. It is His will that has once
again manifested and so to Him be the Glory. Jehovah may You continue to be my Guide.

I am also grateful to Professor S. E Owusu who was not only my supervisor but a mentor.
Thank you for every bit of information you gave me to enrich this thesis, not forgetting your
sincere criticism and openness. May God richly bless you for affecting my life with such
strong values. To Dr. K. O. Agyeman I say a big thank you for the push you constantly gave
me. You have been a huge source of inspiration.

My deepest gratitude go to my family for being there for me when I needed them. I dedicate
this thesis to my mum Miss Elizabeth Terkwor Lawer and my late dad Mr. Michael Tetteh
Djangmah who never lived to see the completion of this course. To my brothers Christian
Djangmah and Lawrence Nyemi-Tei as well my uncle Felix Nyemi-Tei, I say I am very
thankful. My sincerest appreciation goes to Susan Boamah-Sackey for her priceless
assistance throughout this course.

My thanks also go to the following for their diverse assistance John Asima, Theodore
Aplerku, Benjamin Essel, Isaac Gyamfi, Gatoni Yamba Zakari and John Quaye.

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 TABLE OF CONTENT
CONTENTS PAGES

CERTIFICATION .................................................................................................................... i
ABSTRACT ..............................................................................................................................ii
ACKNOWLEDGEMENT ..................................................................................................... iii
TABLE OF CONTENT.......................................................................................................... iv
LIST OF FIGURES ...............................................................................................................vii
LIST OF TABLES ............................................................................................................... viii
ABBREVIATIONS ................................................................................................................. ix
CHAPTER ONE
GENERAL INTRODUCTION ............................................................................................... 1
1.1 Background to the Study...................................................................................................... 1
1.2 STATEMENT OF THE PROBLEM ................................................................................... 3
1.3 RESEARCH QUESTIONS ................................................................................................. 5
1.4 THE OBJECTIVES OF THE STUDY ................................................................................ 6
1.5 THE SCOPE OF THE STUDY ........................................................................................... 6
1.6 JUSTIFICATION OF THE STUDY ................................................................................... 6
1.7 ORGANIZATION OF THE REPORT ................................................................................ 7
CHAPTER TWO
OVERVIEW OF RENTAL HOUSING ................................................................................. 8
2.1 Introduction .......................................................................................................................... 8
2.2 Types of Landlords ............................................................................................................ 10
2.3 The Importance of Rental Housing .................................................................................... 11
2.4 Rental Housing as an Urban Phenomenon......................................................................... 14
2.5 The Nature of the Rental Housing Stock ........................................................................... 16
2.6 Factors Affecting Demand for Rental Housing ................................................................. 18
2.7 Rent Control ....................................................................................................................... 24
2.7.1 Impacts of Rent Control .......................................................................................... 24
CHAPTER THREE
RESEARCH METHODOLOGY AND CONCEPTUAL FRAMEWORK ...................... 28
3.1 Research Methodology ...................................................................................................... 28
3.2 Sample and Sampling Procedure ....................................................................................... 28
3.3 Sources of Data .................................................................................................................. 29

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3.4 Data Collection Instrument ................................................................................................ 30
3.5 Pre-Test .............................................................................................................................. 30
3.6 Data Analysis and Presentation ......................................................................................... 31
3.7 Conceptual Framework ...................................................................................................... 31
CHAPTER FOUR
ANALYSIS OF RENTAL HOUSING IN GREATER ACCRA REGION ...................... 33
4.1 Introduction ........................................................................................................................ 33
4.2 Profile of the Study Area ................................................................................................... 33
4.2.1 Physical Characteristics ........................................................................................... 33
4.2.2 Demographic Characteristics ................................................................................... 33
4.2.3 Economic Characteristics ........................................................................................ 35
4.2.4 Social Characteristics .............................................................................................. 35
4.3 Rental Housing in Urban Ghana ........................................................................................ 36
4.4 Rent Control in Ghana ....................................................................................................... 38
4.5 Background of Renters and Landlord ................................................................................ 38
4.5.1 Age of Renters ......................................................................................................... 39
4.5.2 Gender of Renters .................................................................................................... 40
4.5.3 Providers of Rental Housing.................................................................................... 40
4.6 Rental Holding of Landlords ............................................................................................. 42
4.7 Cost of Rental Units ........................................................................................................... 44
4.8 Types of Dwelling Units .................................................................................................... 46
4.9 Tenancy Agreement ........................................................................................................... 47
4.10 Rent Advance ................................................................................................................... 48
4.11 Choice of Rental Housing ................................................................................................ 49
4.12 Availability of Services.................................................................................................... 50
4.12.1 Location of Bathroom ............................................................................................ 51
4.12.2 Type of Access to Toilet Facility .......................................................................... 53
4.12.3 Access to Potable Water ........................................................................................ 55
4.12.4 Location of Kitchen ............................................................................................... 55
4.12.5 Location of Rental Units........................................................................................ 56
4.13 Factors Considered By Landlords Before Letting or Leasing ......................................... 57
4.14 Type of Building Material Used For Housing Unit ......................................................... 58
4.14.1 Roofing Material.................................................................................................... 58
4.14.2 Material for Outer Wall of Rental Units ................................................................ 59

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4.15 Condition of Foundation of Structure .............................................................................. 60
4.16 Regularity of Maintenance Work..................................................................................... 60
4.17 Factors that Influence Rent Determination ...................................................................... 61
4.18 Payment of Tax on Rent by Landlords ............................................................................ 61
4.19 Rent Control Department ................................................................................................. 62
CHAPTER FIVE
SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION .............. 64
5.1 Introduction ........................................................................................................................ 64
5.2 Summary of Findings ......................................................................................................... 64
5.3 Recommendations .............................................................................................................. 68
5.4 Conclusion ......................................................................................................................... 70
REFERENCE ......................................................................................................................... 72
APPENDICES ........................................................................................................................ 76
APPENDIX 1 ........................................................................................................................... 76
APPENDIX 2 ........................................................................................................................... 76
APPENDIX 3 ........................................................................................................................... 77
APPENDIX 4 ........................................................................................................................... 77
APPENDIX 5 ........................................................................................................................... 78
APPENDIX 6 ........................................................................................................................... 79
APPENDIX 7 ........................................................................................................................... 83
APPENDIX 8 ........................................................................................................................... 87
APPENDIX 9 ........................................................................................................................... 90
APPENDIX 10 ......................................................................................................................... 90

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 LIST OF FIGURES
CONTENTS PAGES

Figure 1: Factors Affecting Housing Affordability ................................................................. 22

Figure 2: Conceptual Framework ............................................................................................ 32
Figure 3: Age of Renters .......................................................................................................... 39
Figure 4: Males and Females in Rental Units .......................................................................... 40
Figure 5: Providers of Rental Housing .................................................................................... 41
Figure 6: Age Distribution of Landlords ................................................................................. 42
Figure 7: Types of Rental Housing Units in Greater Accra Region ........................................ 47
Figure 8: Duration of Rent Advance Paid by Renters ............................................................. 49
Figure 9: Factors Considered Before Making Rental Choice .................................................. 50
Figure 10: Availability of Services in Rental Units ................................................................. 51
Figure 11: Type of Access to Toilet Facility ........................................................................... 54
Figure 12: Number of Complaints Made by Landlords and Tenants to Rent Control
Department in Tema ................................................................................................................ 63

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 LIST OF TABLES
CONTENTS PAGES

Table 1: Housing Tenure for Households in some Selected Countries (1994-2001) .............. 13
Table 2: Housing Tenure in Selected Cities (1994-2000) ....................................................... 14
Table 3: Number of Rental Holding per Landlord................................................................... 43
Table 4: Cost of Rental Units................................................................................................... 45
Table 5: Location of Bathroom ................................................................................................ 53
Table 6: Access to Potable Water ............................................................................................ 55
Table 7: Location of Kitchen ................................................................................................... 56
Table 8: Factors Considered By Landlords before Letting or Leasing .................................... 57
Table 9: Material used for Roof ............................................................................................... 59
Table 10: Material for Outer Wall of Rental Units .................................................................. 59
Table 11: Regularity of Maintenance Work ............................................................................ 60

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 ABBREVIATIONS
CBD Central Business District

CWSA Community Water and Sanitation Agency

GDP Gross Domestic Product

GLSS Ghana Living Standard Survey

GSS Ghana Statistical Service

GoG Government of Ghana

HUD Housing and Urban Development

MDG Millennium Development Goals

MMDAs Metropolitan, Municipal and District Assemblies

NDPC National Development Planning Commission

PHC Population and Housing Census

PNDC Provisional National Defence Council

RCD Rent Control Department

SAP Structural Adjustment Programme

UN United Nation

UNCHS United Nations Commission on Humanitarian Services

V COSS Victorian Council of Social Services

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 CHAPTER ONE

GENERAL INTRODUCTION

1.1 Background to the Study

Among the needs of humankind necessary for survival is housing. There is a general
consensus on the fact that housing has central importance to everyone’s quality of health and
life. This consensus makes it imperative for society to provide better housing to ensure high
living standards. According to Erguden (2001), housing apart from being a very valuable
asset has much wider economic, social, cultural and personal significance.

Again, according to Maslow (1954), the American sociologist, there are five levels of need of
humankind and the most basic are food, clothing and shelter. Maslow further stressed that
these basic needs are literally the requirements for human survival and that if these basic
needs are not met the human body simply cannot continue to function. This further buttresses
how important housing is to the fulfillment of life.

A simple decent housing is more than a human right. Addressing the issue of housing in all
its forms will positively impact the UN Millennium Development Goal (MDG) one that seeks
to improve on the well-being of the individual through eradication of poverty which includes
housing needs. A lack of safe, affordable, decent housing is a major contributor to poverty
and affects all aspects of a family and community’s life. Specifically, one of the targets
within MDG Goal 7 calls for the global community to achieve a significant improvement in
the lives of at least 100 million slum dwellers that lack adequate housing by 2020.

Despite man’s substantial advancement in industry, science and technology, medicine and
other related fields, the simple refuge affording privacy to the individual and his family
appears to be only a distant hope (Abrams, 1964). What has compounded globally the
demand for housing is the speed of urbanization in addition to natural increase in population.
Thus, urban housing is a major challenge that confronts the world today. It is estimated that
in the next two decades about thirty-five million housing units need to be constructed
annually to accommodate newly formed households and replacement of weak units in the
urban areas (Erguden, 2001). Out of this, 11 per cent need to be constructed in Sub-Sahara

1
Africa. According to UN HABITAT, (2003) though Africa is the least urbanized, it is the
fastest urbanizing continent and has a great challenge of providing housing for its urban
population.

The situation in Ghana is not any different. According to the Ghana Statistical Service
(2005), urban population has been experiencing steady increase constituting 23.1 per cent in
1960 and 43.8 per cent in 2000. This is primarily due to high rates of in-migration with
Greater Accra and Ashanti Regions being the most urbanized in that order. As the rate of
urbanization is rapidly increasing and with government accounting just 2 per cent of the total
housing stock, the issue of rental housing – particularly private rental housing is simply
unavoidable.

Rental housing is certainly not a new phenomenon in Ghana; the Rent Act of 1963, Act 220
clearly demonstrates this. However, the issue of renting has not had the deserved attention
over the last two decades or more. Generally, the condition of rental housing reflects the state
of the overall housing stock but the condition of rental accommodation also depends on a
country’s overall housing policies. Rental housing is primarily an urban phenomenon and
since so much depends on the ease with which one can assimilate into city life and move
about as need arises, rental housing should constitute a substantial component in the housing
stock of every urban society as in most developed countries.

On the basis of the crucial role that rental accommodation plays in meeting urban housing
needs, this study seeks to explore further, the many issues that surround rental
accommodation in Ghana.

2
1.2 STATEMENT OF THE PROBLEM
Housing is a basic necessity that leads to improvement in the well-being of the individual or
household and fulfillment of life. To Morgan (1995) a house is not a place for the protection
against the vagaries of the weather, but also an enlargement of one’s personality; it is an
institution in itself. Any inadequacies in housing therefore affect the effective and efficient
functioning of humankind considering the fact that housing is a primary need. Rapid
urbanization continues to increase the demand for housing in urban areas. According to the
National Development Planning Commission (NDPC, 2007) Ghana has a backlog of
accumulated housing delivery totaling over 300,000 housing units with an estimated annual
need of 70,000 units.

From the 2000 Population and Housing Census, Ghana has a population of 18,912,079 of
which 43.8 per cent live in urban areas with Greater Accra and Ashanti being the most
urbanized regions in Ghana. On the average 60 per cent of all housing units in Ghana are
owner-occupied while 22 per cent are rentals. However, rental housing in Greater Accra
alone is 45.9 per cent according to GLSS Vol. 5, 2008 and still increasing.

Rental housing also provides many people with a major form of income. While some rental
housing providers are into it purely on commercial basis, many other small-scale providers
are into it as a means of supplementing income. In spite of the increasing role of rental
housing in meeting housing and income needs in Ghana, rental accommodation has been
relatively unguided and virtually neglected. That is, little attention has been given to this vital
alternative of housing which is also a major alternative of housing provision in developed
countries.

Housing economists define housing as a ‘bundle of attributes’. Attributes here includes not
only the physical aspects of the house, but all the other services which one purchases or gains
access to by buying (or renting) a house which includes but not limited to water, electricity,
toilet facility among others. The price that a buyer (or renter) is willing to pay is an indication
of how much value that person places on the attributes of the house they will occupy (Leaf,
1993). Rental housing in Ghana like any other developing country is facing some challenges
regarding these attributes. The quality of in rental units is of key concern in the rental sector.

3
This is influenced by the quality and durability of the materials used by landlords, and the
actual building process which must lacks supervision to ensure adherence to safety standards.

The quality of rental accommodation is further compromised through poor maintenance of

rental units. Repair works that are either delayed or neglected particularly by non-resident
landlords who are only interested in their rent. This often creates fragile relationship between
landlords and their tenants. `

Another attribute of concern to rental housing in Ghana is provision of basic infrastructure.

This is in relation to the ease of household’s access to utilities like electricity, potable water
and sanitation. Some tenants may have to travel long distance to fetch water while others
have to depend on public toilets or share facilities such as toilets, washing and cooking space
that is in instances where they exist. A study in 2008 by the Community Water and Sanitation
Agency, (CWSA), revealed that more than seventy percent of houses in Ghana lack toilet
facilities. Also, an investigation by the Press Institute showed that many renters who live in
homes without toilets are forced to use nearby public toilets, which are marked by long
queues and unhygienic conditions. The quality of rental accommodation diminishes as access
to utilities is further away from the accommodation or is permanently unavailable.

Also an area in rental housing in Ghana that needs attention is affordability (rent levels) but
has not been studied in depth partly due to difficulty in obtaining data on tenancy contracts or
simply because they do not exist. By convention, housing expenses that consume more than
30 per cent of monthly income are considered as cost burdens unaffordable by Federal
standards in America (Turner, 1986) and housing expenses that consume more than half of
income are severe cost burdens.

Although the existing Rent Act of 1963, Act 220, explicitly states that landlords are only
legally allowed to collect a maximum of 6 months in rent advance, the implementation of the
law is scarce and the reality on the ground is much different. There is often complete
disregard by landlords to this law.

4
Renting is generally an urban tenure because in the countryside people own land and a self-
built dwelling, have traditional rights to a home or have temporary or permanent access to
housing through their employer (Gilbert, 2008). As Ghana, like any other developing country
is urbanizing at a very fast rate, the need for rental housing cannot be ignored any longer.
Although, the overall housing supply is still expanding, its rate of expansion particularly
rental accommodation is not keeping pace with population growth in the urban areas. The
efforts of successive governments have been the promotion of home ownership at the neglect
of rental housing. Rental housing cannot be a substitute for homeownership, yet, rental
housing is a key component of a well-functioning housing market. Despite the fact that
renting is not the universal remedy to solving the housing challenge in a developing country
like Ghana, it does form a significant and vital housing tenure option that should be promoted
along with, but not in competition to home ownership.

To what extent are these services (housing attributes) available in rental accommodation in
Ghana? How does the availability or otherwise of these attributes (facilities and services)
influence rent levels in Ghana? What are the factors that influence landlords and renters in
the determination of rent and the choice of a rental unit respectively? What are the trends in
rent prices in Ghana, and what is driving this trend? Ghana. This is a clear indication of the
extent to which this vital housing option has been neglected.

This study is thus aimed at researching the issues raised above among others as they affect
rental accommodation in Ghana and make necessary recommendations based on the findings
to inform policy on housing and particularly on rental housing in meeting the housing needs
in Ghana.

1.3 RESEARCH QUESTIONS

The research seeks to address the following questions:

i. What are the types and state of rental housing in urban Ghana?
ii. Who are the landlords and renters and how is rent determined?
iii. What are the challenges that confront rental housing in Ghana?
iv. How can tenant, landlord and government equitably benefit from rental housing?
v. What policy options should be pursued to improve rental housing in Ghana?

5
1.4 THE OBJECTIVES OF THE STUDY
The problems discussed above call for the following goal and set of objectives to address
them.
The broad aim of this study is to assess rental housing as a means of meeting housing needs
and improving on the quality of life in Ghana.

For the realization of the study’s goal, the research seeks to accomplish the following set of
objectives;
i. To identify who the providers and users of rental housing are.
ii. To assess the types and state of rental accommodation in Ghana.
iii. To examine what influences the determination of rent.
iv. To assess the role of rental housing in meeting housing need in Ghana.
v. To discuss the findings and make policy recommendations.

1.5 THE SCOPE OF THE STUDY

Geographically the study covered Greater Accra Region. Contextually the research focuses
on the current state of rental housing in urban Ghana, the prospects and challenges and the
way forward. Regarding time, the study covers the period 2000 to 2010.

1.6 JUSTIFICATION OF THE STUDY

This study is relevant in view of the fact that rental accommodation which has been mainly
associated with low-income households has also increasingly become the main form of
housing for middle-income households and new urban residents of all income levels (UN-
HABITAT, 2003).

Considering the increasing demand for rental accommodation and the invaluable role of
rental housing in meeting urban housing needs, it is important that government and all
stakeholders pay particular attention to this sector. The reality is that, millions of households
live in rental housing, and at some point in life most people need rental accommodation (UN-
HABITAT, 2003). It is this motivation of improving human well-being through proper
housing; chiefly rental housing that makes this study worthwhile.

6
The Greater Accra Region was chosen because renting is primarily an urban phenomenon
and Greater Accra is the most urbanized region with the highest rental housing dwellers
according to GSS, (2005). Also, the choice of the region was due to easy access to
information as well as cost considerations.

1.7 ORGANIZATION OF THE REPORT

This report is broadly divided into five chapters. The first chapter gives the basis of the study
which among others includes the problem statement, the research questions and objectives as
well as the scope and justification for the study. Chapter two looks at the overview of rental
housing so as to place the study in its broader theoretical context.

Chapter three focuses on the research methodology adopted for the study as well as the
conceptual framework. Chapter four primarily looks at the background of the study area and
discusses the results of findings gathered from fieldwork. Additionally, it examines rent
control and its effects on the provision of rental housing. Following the analysis and
discussion of findings, summary of major findings and recommendations aimed at improving
rental housing in Ghana are outlined in chapter five.

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 CHAPTER TWO

OVERVIEW OF RENTAL HOUSING

2.1 Introduction
This chapter focuses on the literature reviewed on the subject. The broad areas of this chapter
include an overview of rental housing, the importance of rental housing and the nature of
rental housing stock. The chapter also includes the types of landlords, factors affecting
demand for rental housing and rent control.

Rental housing today constitutes a significant proportion of the housing stock in many
countries, including some of the world’s most developed societies. About half of the urban
population in developing countries is made up of tenants (UNCHS 1990:1). Despite that
considerable progress has been achieved in developing countries in the past two decades
where there has been a shift in public sector’s role from direct provision of rental housing to
focusing on utilization of potential and capacity of informal sector, there continue to exist a
wide gap between policy formulation and its implementation particularly on rental
accommodation. This has affected the provision and supply of rental housing and the status
of housing delivery today is far from being satisfactory.

Whether the proportion of owner-occupiers has increased or not, a common feature of

housing in most developing countries is that the number of urban families living in rental
accommodation has usually increased. The sheer volume of urban growth, through both
migration and natural increase, has encouraged that tendency because the vast majority of
migrants and new urban households initially rent or share accommodation.

Two decades ago, the issue of renting and sharing was virtually absent on the policy tables of
developing countries hence issues on rental housing were neglected topics. According to UN
HABITAT (2003) there was profound ignorance about who most tenants and sharers were,
about the conditions in which they lived, and “almost nothing is known about those who
provide rental accommodation”. Additionally, the myth that homeownership offers a better
life had captured the attention of governments of developing countries; they were therefore

8
wholly uninterested in tenants and sharers, except to convert them into homeowners. Today,
more is known about tenants (UN-HABITAT 2003). From the 1990s a lot of efforts have
been put into bringing renting back onto the housing agenda, albeit there are still areas of
ambiguity and issues that must be investigated in more detail. Nonetheless, the broad outlines
of the informal rental housing sector are no longer shrouded in obscurity.

A meeting of experts organized in 1989 by UN-HABITAT recognized the invaluable role of

rental housing in meeting housing needs and concluded that: “governments should review
their housing policies and devise appropriate strategies for rental housing which removes
biases against non-owners” (UNCHS 1990:6). Unfortunately, in practical terms little has
actually happened, and all attempts to recognise the important role played by the rental sector
in meeting housing needs of developing countries still constitutes perhaps the greatest hole in
most national housing policies. It is difficult to find more than a handful of examples of
developing country governments that even admit publicly that a rental housing market exists
(UN-HABITAT 2003). In Nepal, there is a housing policy, but not a recognition and focus on
rental housing (Tarki 2002). According to Dubel and Pfeiffer (1996: 8) in South Africa,
neglect of rental housing by the government means that it “fails to fulfill its classical social
function, namely, housing the poorer parts of the population with limited or no access to
homeownership in a formal dwelling”. Few governments discuss rental housing and insofar
as it figures in public policy at all, it is discouraged through the impact of ageing statutes on
rent control. According to Datta (1996: 245), “to ignore rental housing given that half of the
population is living in these dwellings is simply being irresponsible”.

Many governments have neglected rental housing basically for ideological reasons. Over the
years politicians have queued up to attest that owner-occupiers are better off than tenants.
Many politicians have argued that owners are more mature than tenants and contribute more
to both economy and society. Also owners are politically conservative and contribute to the
economy both through their savings and their investment. There is the argument that building
homes for owner-occupation creates jobs and is generally good for the economy. Little
empirical evidence has been provided to support these arguments but they seemed to appeal
to the electorate (UN-HABITAT, 2003).

Most of those arguments are highly flawed. For example there are average and above average
income earners who rent accommodation but are better off than some landlords. This is not to

9
down play the role of owner occupation, it certainly offers families a great deal, but the
advantages are greatly exaggerated. Criticisms of rental housing are equally exaggerated
ignoring the benefits that renting offers to tenants and landlords as well as governments, and
perpetuating false myths about the nature of landlordism. As would be seen from the data and
discussions below, rental housing has been ignorantly neglected.

2.2 Types of Landlords

According to Gilbert (2004) there are many kinds of landlords some rich while others are
poor. However, they can all be classified into five categories. They are;

Small-scale landlords
They are by far the most common. The common element is that most use whatever capital
and space they have for rental purposes, often because they have no other way to make
money. They may be formal or informal, poor or middle-income earners. The key element
they share is that the income from rental housing helps them to pay installments on their own
land or house, to meet the expense of repairs, maintenance or improvements, or even to pay
their own rent. Rental income may serve as a safety net against unstable employment or when
moving from regular salaried work to self-employment. It may also supplement or even
substitute for a pension after retirement. Sometimes renting begins accidentally, homeowners
have spare rooms available because the family structure has changed; a partner has left home,
relatives have died, grown up children have moved elsewhere. It may begin because the
breadwinner has changed jobs and cannot commute to the new workplace. Unable to sell
their property because of prevailing market conditions, the only alternative may be to rent out
the property. In all these cases, letting out land, houses or rooms contributes to a household’s
survival strategy. It helps to maintain things as they are, keeps food on the table, brings in
extra cash and makes use of a family’s primary asset: the home. Some find that renting offers
a route to better things. They invest more resources into renting, increasing the size of their
property and renting out more rooms. Some may even buy or construct additional properties.
A few become commercial landlords.

Commercial landlords
This group of landlords operates on a larger scale and act in a more professional way. They
will often rent to middle or high-income households rather than low-income groups, using
written rental contracts and following the building and safety standards. Many will use

10
management agents. Others operate at the poorer end of the market and may build rows of
tenements, sometimes of very low quality and equipped with minimal services. Some will
operate responsibly, others in profoundly dubious ways. Commercial landlords come from all
kinds of background, they may be formally constituted as companies or be ordinary people
who have made money in another field.

Public sector landlords

According to Gilbert (2004) this category of landlords are less common than they once were
but still supply large numbers of housing units in many cities, particularly in China, India and
some transition economies. The landlords may be central government agencies or local
governments. Some provide accommodation only to their employees while others rent out
subsidized shelter to the urban poor.

Social landlord
They are non-profit making organizations which provide housing principally, but not entirely,
for the poor. The institutions may range from charities and housing associations to
educational bodies. In recent years, housing associations in many parts of Western Europe
have increasingly taken over the task of providing cheap rental accommodation from
governments. In some places, schools and universities provide accommodation for their
students.

Employer landlords
This kind of landlords provide accommodation for their employees as an aid to recruitment,
usually because local housing markets are too expensive and they will face recruitment
problems unless they provide shelter for their staff. Examples of such landlords include
hospitals providing rooms for their nurses, universities providing rental housing for faculty
members, and the military. Sometimes governments provide housing as a fringe benefit to
their civil servants particularly when accommodation is particularly scarce, as in newly
established capital cities.

2.3 The Importance of Rental Housing

It is fundamental that rental housing is a critical housing option and one which governments
particularly in developed countries have shown interest in ensuring that it is available and that

11
artificial barriers are not put up that slant the playing field towards ownership for the
following important reasons:
Rental housing reduces costs and hence provides less of a barrier to mobility, a fact
economists take note of because it speeds the adjustment of the labour market when
the geographic pattern of labour demand changes (Green and Hendershott, 2001).
Thus, renting lets people stay mobile and move away when good work is available
elsewhere, without being tied down to any particular place.
Rental housing lowers transactions costs that constitute market inefficiencies and
produce deadweight losses (Haurin and Gil, 2002).
Unlike homeowners, renters do not have to assume the risks associated with an
undiversified investment in a single primary residence (Goetzmann and Spiegel,
2002).
Rental housing provides an opportunity for real estate risk to be pooled and
diversified by larger scale owners better able to manage and professionally assess real
estate risk.
Rents are set in a competitive market while the costs of homeownership depend on the
individual mortgage choices made by homeowners (Belsky and Calder, 2004).
By virtue of not having to obtain a mortgage, rental housing is accessible to more
households (Avery and Canner, 2005).
By virtue of not having to qualify for an individual mortgage, renting can be a better
deal for households with no or impaired credit histories because its costs are not
usually tied to the past credit history of the renter.
Renting gives people flexibility in how individuals manage their household budgets,
moving to cheaper housing when times are hard and to better housing when their
incomes increase, or freeing up more of their earnings for more essential needs like
food, education, medical care or emergencies.
Renting allows people to send more of their city earnings home to relatives, or to
invest in buying land or building a house back in the village as in the case of migrants
(Gilbert, 2004).
It also provides a means through which poor and middle-income landlords, including
women and the old, can increase their incomes (Gilbert, 2004).
In addition it provides urban authorities a way in which cities can reduce the housing
deficit (Gilbert, 2004).

12
Many people live in rental housing all over the world but rental accommodation is more
pervasive in the urban areas due to the opportunities that abound in these areas which attract
people and thus influence in-migration. Evidence suggests strongly that the issue of renting
can only be ignored by any society at its own peril.

Table 1 below shows housing tenure for some selected countries. As it can be observed,
although ownership is dominant, rental housing is equally significant and form the next
largest means of housing in every country. In developed countries like Germany, more than
half (60 per cent) of households were living in rented apartments in 1998, while half of the
people in Austria in 1999 were in rented accommodation (UN-HABITAT, 2003). In other
developing countries like Benin, Ghana, South Africa and Colombia, rental housing features
prominently.

Table 1: Housing Tenure for Households in some Selected Countries (1994 -

2001)

COUNTRY YEAR OWNERSHIP RENTING OTHERS

(%) (%) (%)
Benin 1994 63 37
South Africa 1996 77 22 2
Niger 1998 93 7
Rep. of Korea 1995 75 25
India 2001 87 11 3
Iran 1996 81 19
Brazil 1998 74 35 1
Mexico 1998 78 22
Colombia 1997 61 35 5
USA 1997 66 34
Germany 1998 40 60
Canada 1998 62 33 5
United Kingdom 2000 69 31
Austria 1999 50 50
Source: UN-HABITAT, 2003

13
2.4 Rental Housing as an Urban Phenomenon
As indicated earlier, although renting can occur in any part of a country, research has shown
that the incidence of renting is high in urban areas compared to the rural areas and often
higher than the national averages.

Table 2: Housing Tenure in Selected Cities (1994-2000)

CITY COUNTRY YEAR OWNERSHIP RENTING OTHERS

(%) (%) (%)
Cairo Egypt 1996 37 63
Addis Ababa Ethiopia 1998 38 60 2
Kumasi Ghana 1998 26 57 17
Kisumu Kenya 1998 14 82 4
Johannesburg South Africa 1996 55 42 3
Seoul Rep. of Korea 1995 70 30
Bangkok Thailand 1998 54 41 5
Buenos Aires Argentina 1998 75 23 2
Rio de Janeiro Brazil 2000 75 17 8
Montreal Canada 1998 46 54
Berlin Germany 1998 11 89
London Britain 1998 58 41
New York USA 1998 45 55
Source: UN-HABITAT, 2003

Table 2 shows tenure trends in some cities from selected countries in both developed and
developing economies. It is observed that rental housing today constitutes a large proportion
of the housing stock in many countries, including some of the world’s most developed
societies. Cities of developed countries like Montreal, New York and Berlin have high
incidence of renting with Berlin having as high as 89 per cent of rental tenure in 1998 (UN-
HABITAT, 2003). In general, cities with tight housing or land markets have higher levels of
renting because many families who might opt for ownership are not able to. City size
certainly contributes to the tightness of the housing market with major cities tending to show
higher rates of renting than smaller cities, particularly in more developed countries.

14
Equally, cities in developing countries also have similar tenure pattern as indicated above. In
Kumasi, the second largest city in Ghana, rental accommodation accounted for 57 per cent of
housing tenure (UNCHS, 2001a: 96). The fact that many of the world’s richest countries have
a large rental sector demonstrates that home-ownership levels cannot be taken as a symbol of
national prosperity”. Any suggestion that home ownership rates are measures of national
success, at least in the economic sphere, must confront the fact that there is, over the older
industrialised countries, a significant, negative correlation between national rates of home
ownership and GDP per capita. Broadly, the lower the proportion of home owners in a
country, the higher its GDP per capita (Doling and others, 2003: 11).

In the nineteenth and early twentieth centuries, rental housing constituted the primary focus
of attention for housing provision but has since been ignored. Convinced that owner-
occupation was popular with the electorate; most governments of developing countries have
followed the path of the developed world in encouraging the illusive “American Dream” of
universal homeownership sacrificing rental housing on the altar of owner-occupation.

Tenancy arrangements have pervaded all sub-sections of the housing market: they occur in
densely-built old city quarters, in public housing estates, in housing schemes for civil
servants, in private sector housing and condominium estates, as well as in squatter- and slum
settlements, in peri-urban land subdivisions and in semi-rural commuter settlements
(Dewandeler, 2006).

In addition, rental housing-with the exception of large purpose-built rental complexes-is

extremely dispersed. As housing markets matured, commercial holding of land and housing
increased the possibilities for tenancy. As the variety of tenure options spread and diversified
from inner-city tenements to peripheral informal settlements, the role of large, exploitative
landlords in most countries became less prominent.

Also, private landlords often resemble their tenants in many respects. Landlords typically are
petty entrepreneurs who often live on the same premises and have a limited social and
economic status similar to their tenants. In other words poor landlords tend to rent out to poor
tenants. Households and individuals who are better-off rent from better-off landlords
(Dewandeler, 2006).

15
Furthermore, both landlords and tenants deliberately keep rental housing invisible out of fear
of government restraints. Rental housing responds to a real need, but its efficacy is affected
by repressive planning policies and processes (Kumar, 2001:3).

Again, rental housing remains largely invisible because of the nature of the rental agreement:
it is personal agreement whose details may not even be known to other tenants within the
same rental property.

2.5 The Nature of the Rental Housing Stock

The size of the rental housing stock varies between countries, within countries and between
cities. If diversity is the key feature of housing tenure across the world, the same has to be
said about the nature of the rental housing stock. In some countries, rental housing is
provided mostly by the public sector, in others by private landlords or by both. Not only that,
but the forms of rental housing varied considerably. In developed countries, most forms of
renting are subject to the legal process, whereas in most developing countries this is not the
case. It is extremely difficult, and often impossible, to generalize about the nature of rental
housing.

The diversity of rental arrangements largely derives from the nature of rental agreements i.e.,
a personal agreement between landlord and tenant. The landlord agrees to grant the tenant the
right to accommodation for a period of time. In return, the tenant agrees to compensate the
landlord at regular intervals. The accommodation may range from a house, one floor or room
of a house, a part of a room or even simply a bed. The kind of compensation depends for a
large extent on the relationship between landlord and tenant. The landlord may let relatives or
friends stay free of charge. He may also provide housing as a fringe benefit in return for
labour by domestic staff or employees. Or the landlord may charge money in exchange for
the accommodation (Dewandeler, 2006).

Rent level depends on the quality of accommodation which include the availability of
facilities such as potable water, electricity, toilet, kitchen etc and also on “environmental
qualities” such as access to public services and the neighbourhood. Rent levels are equally
influenced by room size as well as the location of the rental unit. Rental units that are closer
to the city centre often attract higher rents compared to those at the periphery since the

16
periphery is now developing and thus lack certain facilities that are readily available to the
city centre. Also because there is ease of access to the Central Business District (CBD)
regarding transport when one lives close to the CBD compared to the periphery. Whether a
rental arrangement is profitable, economic (i.e., it just covers the investment) or subsidized
(i.e. it does not cover the investment), largely depends on the relationship between landlord
and tenant.

Landlords can either be public or private sector agents. Within the public sector, purpose-
built housing for low-income tenants could be distinguished from institutional housing
provided as a fringe benefit to civil servants. Within the private sector, rental agreements
made with juristic persons (e.g. companies or housing cooperatives) leave less space for
informal arrangements than agreements with private persons.

Modalities of access are important because they distort free market mechanisms, which often
results in lower rent-levels. Within restricted rental housing markets, access often is linked to
one’s relation to the landlord. As the Asian context is characterized by a dominantly rural
past, accelerated industrialization and rapid urbanization, most urbanites have rural roots and
are prepared to provide temporary shelter on a rent-free basis to friends and relatives. This
kind of arrangement is crucial for seasonal migrants who are drawn to this housing option
due to the limited period of their stay or their unstable employment.

Alternatively, they may seek access to housing linked to occupational status by seeking an
employment as wage labourers for whom accommodation is provided (e.g. market vendors,
construction workers, etc.). Domestic servants staying in-house with their employers or
factory workers boarded within the fences of a manufacturing plant (or industrial estate),
generally share plain but safe accommodation.

Civil servants are another category of employees that often benefit from housing that
government or state agencies provide either rent-free or at nominal rents. Within open rental
housing markets, access may be conditional i.e. linked to conditions, such as income level,
gender, enrolment as a student, etc. A typical example of this category is public housing that
was purpose-built for low-income tenants.

17
In the private sector, accommodation reserved for students is a current practice; other
examples include hostels for women, low-income housing built by NGOs or charity
organisations. Efficient rental market conditions are realized only where access is both open
and unconditional. In most Asian countries, “demand” for housing is shrouded because
personal comfort is put second to the interest of the extended family. Once the need of the
extended family is met, a demand for individual housing may arise. That demand may trigger
the transition from sharing to renting, inspire the option for a larger, better serviced rental
unit or motivate moving to a safer neighbourhood with better social infrastructure. Over time,
a portion of tenants may aspire to become home-owners; renting out part of their property
may be one way in which they make these transitions financially viable.

A final variable to be considered is the duration of the agreement. A rental contract can be
made for a specific period of time or in perpetuity. In most countries, lease periods are
limited by law, but can be renewed once this period has expired. While short-term rental only
requires some written evidence, other types of long-term rental agreements require a written
and even registered contract. A hire-purchase agreement, for example, involves that a
landlord agrees to let his property to a tenant with the promise that the tenant will acquire
ownership of the property, provided that he regularly pays an exact amount within a specific
period of time. This arrangement originated in the land-subdivision market, but also finds
applications in public sector low-income housing schemes. Developers in the private sector
often adopt a similar arrangement to bridge the period between the purchase of the project
site and the start of construction works.

2.6 Factors Affecting Demand for Rental Housing

Well functioning rental housing provides a variety of housing options at affordable prices and
within easy access of places of employment. Besides income and location, the occupation,
family circumstances, life style and mobility also deeply influence tenure choice. Several
factors come to play in influencing the tenure choice of households.

Quality of Housing Unit

Housing economist defines housing as a ‘bundle of attributes’. Attributes here means not only
the physical aspects of the house, but all the other services which one purchases or gains
access to by buying (or renting) a house. The price that a buyer (or renter) is willing to pay is
an indication of how much value that person places on the attributes of the house they will

18
occupy (Leaf, 1993:4). It is these housing attributes that make two identical houses, built in
two different locations, be sold (or let) for vastly different prices. Assessment of both rental
and owner-occupied housing quality needs to consider at least three sets of attributes: (i) the
quality of the accommodation, (ii) access to basic infrastructure and services, and (iii) the
social and economic access to public services and the neighbourhood.

Housing quality is influenced by several factors, which include materials of the outer walls,
materials of the roofs, type of water services, type of sewage services, tenure, and food
markets, public transportation, primary schools, secondary schools, and health
clinic/hospitals. Wall and roofing materials are valued according to their durability. The
quality of drinking water is based on hygienic conditions of the water source; water from an
indoor tap is considered safer than water from rivers, lakes or ponds,

Regarding basic infrastructure, quality of housing is measured by the ease of access to

utilities like electricity, running water and sanitation. Self-contained housing units have the
easiest access; rooms with shared access score lower. Housing quality diminishes as access to
utilities is further away from the accommodation or is permanently unavailable.

A third level of quality attributes includes proximity to places of employment or schooling,

accessibility and availability of public transport facilities, and the quality of services and
social infrastructure in the neighbourhood. These are usually more easily accessible in the
inner city rather than in the urban periphery.

Location implies “access to the city”, which means in the first place: access to employment
and income. Precarious employment, varying sources of income and unexpected expenditure
force tenants to rely extensively on familial solidarity and informal networks, while
minimizing unnecessary expenses on utilities, services or transportation. Also, the level of
security may be less fragile in inner city areas, because of the density of social networks and
the availability of a wide range of housing options due to the variety of job opportunities and
income levels. Location thus affects rent levels and hence tenure choice. Rental unit located
in the inner city with easy access to social infrastructure and services would attract higher
rent compared to urban periphery where access to these facilities is difficult or simply non-
existing.

19
Income level
The strong promotion of home-ownership in past decades has led to the mistaken belief that
rental tenure mainly results of budgetary constraints. This misconception will probably
remain difficult to eradicate for many years to come, because there will always be groups that
border on homelessness. They may seek no more than a place to sleep, whether in public
places or at their place of work (UNCHS, 1996: 216-217).

Generally speaking, the motivation for people to opt for renting is linked to long-term
security just as much as it is for people who opt for home-ownership. The only difference is
that tenants, like other poor households and individuals often lack long-term security of
income, and therefore may opt to set aside their meagre resources for other long-term
investments, such as supporting the extended family or providing an education for the next
generation. By forcing households to make difficult tradeoffs like skimping on basic needs,
taking long and costly travels, and accepting substandard housing, unaffordable rental
housing is producing negative health and labour outcomes, reducing savings, and placing
children at risk.

Mobility
Moving in and out of an urban environment has become an inherent part of life for many
particularly in developing countries where wide gap exists between rural and urban
environments. Whether it is to pursue higher education, seek a job to supplement the family
income, negotiate an economic transaction or build a professional career, one cannot avoid
the city in the conduct of study, work, trade or leisure. Freshly graduated students and other
young tenants wanting to gain experience are always on the look-out for new and better paid
jobs and change jobs frequently. Single people may want to save enough money to return to
their home province and settle down there; others are determined to settle down in the city
once they have found a stable employment. For this and many other reasons, households may
opt for rental accommodation. Tenants thus base their choice on the possibility to leave at
short notice and with a minimum of formalities.

20
Discrimination
Discrimination permeates many aspects of housing markets throughout the world. Women
and migrants tend to have less access to ownership than other groups, those with political
contacts gain easier access to public housing than others. In Ghent, Belgium, there is
discrimination against risky groups; single persons, single mothers, asylum seekers and
people living on social allowances (UN HABITAT, 2003).

Race and ethnicity have long been a source of discrimination. In Muslin, Lagos – Nigeria,
landlords are more receptive to strangers and outsiders. According to Barnes (1982), private
owners prefer to rent to members of ethnic groups other than their own because as they
report, it is easier to collect rents from those to whom one is not close. Furthermore, strangers
are more likely to leave the premises when asked, unlike certain family relations.

Additionally, age, sex and marital status also influence landlord’s decision in renting out a
facility. In Surat (India), and in Guadalajara and Pueblo in Mexico, landlords do not like
single men; in Bangalore (India), it is women headed households, whether widows or single
women who are less welcome (Kumar, 2001; 102). Also, pets are in many countries likely to
discourage landlords from accepting tenant.

Rent Affordability
Rental affordability is by far the most common housing problem found among renters.
Defining housing affordability is complicated and entails subjective judgments. For example,
should households that spend a small fraction of their income on housing but that live in a
substandard home or in an unsafe neighbourhood or at great distances from their jobs be
construed as having affordability problems? If so, then which households ought to be
counted? Should households with moderate incomes who spend so much on housing that they
have too little leftover to save and invest be viewed as having an affordability problem?
Should a low or moderate-income households that spend a large share of their income on
housing to live in an affluent neighbourhood be viewed as having an affordability problem or
as having just made a choice to spend more on housing? Indeed, distinguishing between who
is allocating large shares of income to housing or taking long travels out of choice and who is
doing so out of necessity is a bedeviling task.

21
However, according to the Department of Housing and Urban Development (HUD) of United
States of America (USA), housing is considered affordable when a household pays no more
than 30 per cent of their net- income on rent. The HUD benchmark for housing affordability
is a 30 per cent rent-to-income ratio. Similarly, the Victorian Council of Social Services
(VCOSS), Australia, measures of housing affordability is based on the National Centre for
Social and Economic Modeling definition of housing stress when households in the lowest 40
per cent of disposable income are paying 30 per cent or more of that income on housing.

The primary benefits of the cost-to-income ratio are that: i) it is simple to calculate and
understand, ii) it is based on readily available data, iii) it can be applied across a range of
places, to track changes over time and to explore differences in these ratios across
households; and iv) it is very direct in that it measures actual outlays of households relative to
their actual incomes. Only two inputs – income and housing cost – are needed to calculate the
ratio.
Although this ratio is straightforward, it is affected by a variety of other underlying “supply
and demand” factors as indicated in Figure 1 below.

Figure 1: Factors Affecting Housing Affordability

Source: City of Calgary, 2002

22
Income plays an important role as a primary determinant of whether housing is affordable,
but income also affects the price of housing in the market. Thus, housing is a normal ‘good’
and, as incomes increase, it is expected that more housing will be demanded, which in turn
increases the average price of housing. Demography also plays a similar role because housing
is a necessity, so as the population increases, so does the demand for housing. As demand for
housing increases, housing prices rise. Increased demand will provide the incentive for
developers to increase the supply of housing. If enough new housing is constructed to meet
the demands of a growing population, there should be little impact on the price of housing.

Again, the costs borne by developers will also have a significant impact on whether or not
housing is affordable. Land has to be purchased and the labour force that is building new
housing has to be paid. New housing developments will be aimed at capturing as much of the
new demand as possible and, given the costs of land and construction, housing will only be
supplied above a certain minimum price level. This means that the supply of affordable
housing is not likely to keep pace with demand for new housing units. This especially affects
low-income earners whose wages may have fallen or have risen only marginally.
Interest rates are also very important and have an effect on both the demand and supply of
housing. If the interest rate declines, developers will find it cheaper to finance their business,
making development more profitable. At the same time, a drop in the interest rate will
increase the amount of money households can affordably spend on housing as shown in
figure 1.

Policies and programmes at the national and local levels promoting this form of residential
tenure are still rare, and aid programmes for rental tenure remain a neglected element of
international assistance (UN-HABITAT 2003a:166). Governments and international
organizations are slowly beginning to recognise the important role played by the rental sector
in informal settlements.

In the cities of developing countries facing severe shortages of housing units that are
affordable to low-income households, there is a need to increase the quality and quantity of
rental housing stock. Rental housing has not had adequate place in the debate on poverty
alleviation. Renting in most developing countries is an activity predominantly involving two

23
sets of poor people. Poor landlords produce rental housing for poor tenants. Since the rents of
one set of poor people help sustain the incomes of another set of poor people, the role that
housing plays in income generation and household budgets is very important. However,
recent debates about poverty alleviation are all too likely to omit the housing question
altogether (UN-HABITAT 2003b:179).

The World Bank, for example did carry out some important research on rental housing in the
past, and its policy statement of 1993 did occasionally refer to rental housing. However, the
Bank has been virtually silent on the issue ever since and has certainly not provided any loans
to support the rental housing sector (UN-HABITAT 2003b:1781).

2.7 Rent Control

Most rent control regulations date back to the Second World War in Europe and America,
when they were imposed to protect tenants against skyrocketing rents during periods of
scarcity and inflation (Alison, 1988). Rent control is often considered a simple policy in
which the government sets ceiling on the rent that will be charged in the market. In reality,
rent control regulations are anything but homogeneous and anything but simple (Malpezzi
and Ball, 1991). Rent control is one of the most pervasive forms of regulation in the housing
market. Many European nations adopted a postwar goal of guaranteeing housing to all
individuals and rent control was often used as a mechanism to ensure affordability.

Rent control refers to laws or ordinances that set price ceiling on the renting of residential
housing. It functions as a price control. Rent control exists in many parts of the world. Rent
control laws vary from one country to another, and may vary from one jurisdiction to another
within some countries.

2.7.1 Impacts of Rent Control

There are numerous cases all over the world where imposition of rent controls has led to
various problems. A study done in 1997 (Glaeser and Luttmer) found out that twenty one
percent of tenants in New York City have either more or less number of rooms than they

24
would have stayed in had there been a free market in housing. Further, a study done by
Malpezzi (1998) on the housing market in Cairo revealed that rent payments in the controlled
sector were accompanied by huge side payments, which substantially reduce any subsidies
that the tenants would have received from a ceiling on rents. There is also evidence to support
the assertion that rent controls may lead to homelessness through an increase of rents in the
uncontrolled sector and decreasing the vacancy rate in the controlled sector. Grimes and
Chressanthis (1997) proved this point using US census data for the 1990s. After imposition of
rent controls, the city’s shelter population increased by .03 per cent and the street population
increased by .008 per cent.

Rent control reduces the incentive of landlords to supply rental units. Rental units tend to be
in scarce supply under rent control. Ironically this leads to an escalation of complaints against
the landlord class. Vacancy levels tend to be relatively low and available units tend to be
rented only under strict conditions, again aggravating relations between landlords and
tenants. Rent control discourages landlords from maintaining and repairing units till the end
of a tenancy. There is also an incentive for landlords to discriminate against tenants likely to
stay for a long time, like retirees or couples with children.

Tenants in rent controlled units are less willing to move to other places, despite the possibility
of earning higher wages. They know that the supply is artificially limited and will become
more limited in the future. They know that if they stay, they’ll be able to pay about the same
rent forever, in real terms. Again, they know that if they were to look for another apartment,
and they were fortunate enough to find one, the rent would be significantly higher than what
they pay where they are. Hence they remain in their current accommodation.

Because of the disincentive to improve and maintain the property, landlords will often
become ‘slumlords’ and allow unhealthy conditions or activities to take place in the
apartments. The lack of improvement is not only unpleasant to the current renter, but
accelerates the end of the usable life of the apartment building. The Rand Corporation studied
Los Angeles’ rent control law and found that 63 percent of the benefit of lowered rents was
offset by a loss in available housing related to deterioration and disinvestment. The free-
market typically creates disincentive to any discrimination based on factors other than price,

25
quality, and quantity because of the self interest of the participants. However, rent control
removes this disincentive.

Since under rent control, the price is set and there are many applicants, a landlord has the
incentive to choose tenants based on other factors. A landlord will more carefully examine
applicants’ credit history and income, which a good landlord should do. A landlord may
decide that renting to families is less desirable, or may prefer to rent to attractive young
females. Often times, racial preferences have influenced renting decisions, which
traditionally worked against minorities. Thus, rent control can exacerbate segregation
problems because landlords choose not to rent to people who would change the demographics
of an area. As mentioned above, duration in residence in a rent-controlled apartment has been
observed to be three times as long as duration at market-rate apartments. One can see that the
incentive to hoard rent-controlled apartments is also disincentive to relocate.

The mobility of both the tenants and newcomers are drastically hampered by rent control.
Unless the tenant has the money to rent a second apartment it will be difficult for him to
relocate closer to better employment. The tenant may rather endure a very long travel to work
in order to maintain the rent-controlled apartment. As Walter, (2002) put it, "They are, in a
sense, trapped by the gentle and visible hand that keeps them where they are rather than
where they might do better."

Difficulties are multiplied if the local economy takes a turn for the worse. A downturn in
local employment would not be relieved by people relocating for jobs, thus making the
unemployment and poverty situation worse. Employees looking to relocate in the city with
rent control are hurt the worst as they will have a difficult time finding available apartments.

Rent control reduces the market value of regulated rental property. Typically, this negatively
affects the assessed property value relative to unregulated properties, decreasing overall
property tax revenues and burdening market properties disproportionately. A study of rent
control in New York City in the late 80s estimated reduction in taxable assessed property
values attributable to rent control at approximately $4 billion, which costs the city
approximately $370 million per year in property tax revenues.

26
Developers would have very little incentive to build affordable housing if they know the rents
they charge were to be restricted by rent control, or were at risk of being regulated in the
future. Thus, almost no new stock of middle and lower class housing is built. Instead,
developers may only build "luxury" buildings that are often not regulated. Thus, affordable
housing stock will decrease as older buildings become uninhabitable and no new stock is
created. Over a long time, the effects of the shortage are devastating.

As mentioned above, landlords may adopt crude methods to choose their tenants, since price
is not permitted to be the deciding factor. Often, landlords will discriminate against persons
of certain ethnicities or religions. This type of discrimination can often be widespread
through an area causing tensions between religious or ethnic groups, and in the long-run drive
out certain types of people from those areas.

27
 CHAPTER THREE

RESEARCH METHODOLOGY AND CONCEPTUAL FRAMEWORK

3.1 Research Methodology

This study adopted the explanatory research approach. According to Gay (1987) explanatory
research involves collecting data in order to test hypothesis or to answer questions concerning
the current status of the subject of the study. It is economical and convenient for a study of
this nature. Robert K. Yin (1993) defines the explanatory research method as an empirical
inquiry that investigates a contemporary phenomenon within its real-life context; when the
boundaries between phenomenon and context are not clearly evident; and in which multiple
sources of evidence are used. Thus explanatory research stresses detailed contextual analysis
of a limited number of events or conditions and their relationships. Researchers across a
variety of disciplines have used the explanatory research method for many years. However,
Social Scientists, in particular, have made wide use of this qualitative research method to
examine contemporary real-life situations and provide the basis for the application of ideas
and extension of methods.

The choice of explanatory research approach for this study was influenced by the goal of the
study; which is to seek a better understanding of the current state of rental housing in Ghana.
The less expensive nature of the application of the approach as well as the ease of use in a
research like this also contributed significantly in the choice of this approach.

3.2 Sample and Sampling Procedure

The target population of the study was made up of landlords (both private formal and
informal), renters and officials of the rent control office. The inclusion of landlords was to
help understand the prospects as well as the challenges that confront providers of rental
housing. As providers of rental housing, landlords were included in order to get a balanced
picture of the happenings in the rental sector.
Renters are the occupants and users of rental accommodation; hence for this study to make
meaning they were included in order to elicit their practical experience as users of rental
housing and as well understand the nature of rental housing from the perspective of the users.
The Rent Control Department is the only legally mandated state institution that deals with

28
issues on renting; the inclusion therefore of the Rent Control Department among the targets
was to help gain an understanding from an independent view point, regarding the field
observations of officials of the rent control office. It is also to identify the issues that
landlords and renters bring to their office as complains.

In selecting the sample for the study both probability and non- probability sampling
techniques were used. Purposive sampling, a type of non-probability sampling technique, was
used in selecting the rent control official. From the framework of districts in the region, three
districts namely–Tema Metropolitan Assembly; Ashaiman and Ledzekuku-Krowor
Municipal Assemblies were purposively selected. In order to achieve the general and specific
objectives of the study, a sample of renters and landlords was taken and to ensure fair
representation of the population in the study area, the study area was sub-divided into four
cluster namely; Tema, Ashaiman, Kpone-Katamansu and Teshie-Nungua and renters and
landlords were randomly selected.

A total of 231 questionnaires were administered for this study and 186 were retrieved making
a response rate of 81 per cent. One hundred and forty (140) renters and ninety (90) landlords
were selected for the study. This is due to easy access, financial and time constraints, and also
because the districts in the Greater Accra Region are relatively homogeneous, it will help in
making generalization possible. Out of the 140 and 90 questionnaires that were administered
to renters and landlords respectively, 110 renters and 75 landlords’ questionnaire were
returned to the researcher, representing 79 and 83 per cent response rate respectively. One (1)
questionnaire was administered to the rent control department.

3.3 Sources of Data

Data for this study were assembled through literature review and fieldwork, which are from
secondary and primary sources respectively. Literature study was needed to gain an insight
into what had already been done and written about rental housing so as to acquire ideas for
the rest of the research. The secondary sources of information included data collected from
sources such as published books, articles, journals and lecture notes.

The primary data were obtained directly from tenants, renters and rent control official
through the administration of questionnaire and both structured and unstructured interviews.

29
The primary source of data provides the study with information from those who are directly
involved in rental housing and therefore a firsthand information relevant to a study of this
nature.

3.4 Data Collection Instrument

Formal and informal interviews and questionnaire were the main instruments used. The
questionnaires were both open and close-ended to accommodate all the views of the
respondents. Observations were also made. Questionnaire enhanced the collection of data that
ensured the best matching of concepts with reality; it provided the same responses from a
given set of respondents and helped reduce bias. According to Ng (2006:1), a questionnaire is
a very convenient way of collecting information from a large number of people within a
period of time. Hence, the design of the questionnaire is of utmost importance to ensure
accurate data were collected so that the results are interpretable and generalisable. The
questionnaire consisted of both open and closed-ended questions, based on the objectives of
the research and can be found in Appendices 6, 7 and 8.

3.5 Pre-Test
In order to test the reliability and validity of the data collection instrument, pre-test was
carried out. There was a reconnaissance study in order to pre-test the instruments. This stage
revealed the suitability of the methods and instruments that were employed in the study. This
consequently led to early detection of errors and distortions in the questionnaire which were
corrected in the process. This helped the researcher to familiarize himself with the research
environment and also offered the opportunity to practice research in real situation before the
main study began (Sarantakos, 1998: 292-293).

The pre-test provides a means of catching and solving unforeseen problems in the use of the
questionnaire, such as the phrasing and sequencing of questions. Linguistic and cultural
differences also complicate the task of questionnaire design, making pretesting all the more
indispensable.

30
3.6 Data Analysis and Presentation
Data analysis was done both qualitatively and quantitatively. It is customary in both
descriptive and analytical studies to look for and to establish relationship between and among
phenomena and events. Statistical methods are one of the means to this end. The results from
the study have been presented in percentages, tables, pie charts and bar charts for easy
comprehension with the help of Microsoft Excel. These graphical and tabular illustrations
were used to discuss the findings.

3.7 Conceptual Framework

The conceptual framework in Figure 2 shows a functional rental housing sector where
providers of rental housing units include the government, private formal and private informal
providers. Notable among the characteristics of private formal providers is that they are
registered with Registrar Generals’ Department and thus have legal backing and they make
use of tenancy agreements and operates mostly on large scale. Private informal providers
have almost opposite characteristics. They are mostly unregistered; do not make use of
contracts; operate mostly on small scale and they often live with tenants.

The supply of rental housing is influenced by many factors which include the nature of
housing policy, availability of credit and land tenure system. Demand characteristics of rental
housing include quality of housing unit; access to basic infrastructure and services; location;
income level; mobility among others.

Rental housing occurs almost everywhere in an urban area. Rental accommodation can be
found in urban periphery, inner city and townships. Notable among the types of rental
housing unit provided are detached, semi-detached, block of flats and compound houses.
Some characteristics of quality housing unit include physical condition of structure, access to
basic infrastructure and services and social and economic access as well as environmental
quality.

31
PROVIDERS SUPPLY HOUSE TYPE QUALITY
CHARACTERISTICS SUPPLIED CHARACTERISTICS
 Government
 Nature of housing  Detached  Physical
 Private
policy condition of
Formal  Semi-detached
 Availability of housing unit
 Private  Block of flats  Access to
credit
 Land tenure  Compound social and
Informal
system economic
houses
infrastructure
and services
 Environment

CONSUMERS DEMAND HOUSE TYPE LOCATION OF

CHARACTERISTICS DEMANDED RENTAL UNITS
 High Income
Households  Quality of housing  Detached  Inner city
unit
 Middle  Semi-detached
 Access to basic  Townships
Income infrastructure and  Block of flats
services  Compound
Households  Urban
 Location of housing
houses periphery
 Low Income unit
 Income level
Households
 Mobility

Figure 2: Conceptual Framework

Source: Author’s Construct, 2010

32
 CHAPTER FOUR

ANALYSIS OF RENTAL HOUSING IN GREATER ACCRA REGION

4.1 Introduction
This chapter seeks to analyze the findings of the study. It focuses on the profile of the study
area, rental housing in urban Ghana and Rent Control in Ghana. It also looks at the
background of renters, providers of rental housing, types of dwelling units, factors considered
before making rental choice, availability of services in rental units, factors considered by
landlords before renting out, type of building material used for a house or unit. The responses
provided by renters, landlords and rent control officials have been discussed and analyzed
logically.

4.2 Profile of the Study Area

4.2.1 Physical Characteristics

The Greater Accra Region is located in the south-central part of Ghana. It shares common
borders with the Central Region on the west, Volta Region on the east, Eastern Region on the
north and the Gulf of Guinea on the south. It is the smallest of the 10 administrative regions,
occupying a land surface area of 3,245 square kilometres or 1.4 per cent of the total land area
of
Ghana. It is however the most urbanized. It has a coastline of approximately 225 kilometres,
stretching from Kokrobite in the west to Ada in the east (Ghana Statistical Service, 2005 p:
4). This makes the region very attractive to fishermen and also holiday makers due to its
serene beaches.

4.2.2 Demographic Characteristics

The population of the region has demographic, social, economic and political consequences.
The population of Greater Accra has increased from 1,817 in 1960 to 2,905,726 in 2000
(Ghana Statistical Service, 2005). It has the second largest population, after Ashanti, and its
share of the total population of the country has more than doubled, increased from 7.3 per
cent in 1960 to 15.4 per cent in 2000 (Ghana Statistical Service, 2005).

33
The male population has grown from 261,547 in 1960 to 1,436,135 in 2000 with the
corresponding female figures being 230,270 in 1960 and 1,469,591 in 2000 (Ghana Statistical
Service, 2005). During the 1960-2000 period, the female population grew much faster than
the male population. This may be the result of greater migration of females into the region in
response to the employment and other opportunities provided by urbanization in the area of
trading and services (Ghana Statistical Service, 2005).

The region has continued to be the most densely populated region in the country since 1960.
Population density (measured as the number of persons per square kilometre) has increased
from
167 in 1960 to 895.4 in 2000. The densely populated nature of the region is brought into
sharp focus when it is compared with the other regions over the same period such as Ashanti
Region that increased from 45.5 to 148.1, Central Region 76.5 to 162.2, Brong Ahafo Region
14.9 to 45.9, Northern Region 7.6 to 25.9 and Upper West Region 15.3 to 30.6 (GSS,2005).

The region has also experienced the highest growth rate in the country since 1960. The
intercensal growth rate was 5.5 per cent per annum between 1960 and 1970, and 3.3 per cent
between 1970 and 1984. The 4.4 per cent annual growth rate that the region experienced for
the period 1984-2000 is far in excess of the national average figure of 2.7 per cent and
implies a doubling time of 16 years for the regional population, compared with 26 years for
the country.

A population’s age and sex structure is shaped by its past history of fertility, mortality and
migration. The region’s age structure is still a youthful one characterized by a somewhat high
fertility that has begun to show signs of a downward trend. Total fertility rate has decreased
from 3.6 in 1993 to 2.7 in 1998 and 2000. The proportion of the population aged less than 15
years was 39.4 per cent in 1960. It increased to 42 per cent in 1970, and then decreased
sharply to 33 per cent in 2000 (Ghana Statistical Service, 2005).

All the above have significant implication on demand for housing which is a basic necessity,
particularly rental accommodation since it is the most urbanized region in Ghana and has
access to land and affordability challenges – a common feature of urban communities.

34
4.2.3 Economic Characteristics
Out of a population of 1,945,284 aged 15 years and older, 70.8 per cent were economically
active, while 29.1 per cent were not. Students (35.9 per cent) and homemakers (25.8 per cent)
form the highest proportions of the non-economically active population. Of the economically
active males aged 15 years and older, 83.5 per cent are in employment. The corresponding
figure for females is 81.7 per cent.

The occupational structure indicates that 42.0 per cent were engaged in sales and service
occupations, with 24.7 per cent as production, transport and equipment operators. As
expected, the region has a larger concentration of professional and technical workers who
form 10.8 per cent compared to the national figure of 6.5 per cent. On the other hand,
agriculture, animal husbandry and forestry, fishermen and hunters, do not feature as
prominently making just 9.1 per cent compared to the 49.1 per cent for the country as a whole
(Ghana Statistical Service, 2005).

There are sex differences in terms of type of occupation. The four largest male occupational
groups are production, transport operators which forms 29.6 per cent, sales 19.4 per cent,
clerical and related workers 14.4 per cent and professional, technical and related workers 13.4
per cent. In contrast, females are mainly sales workers who form 42.0 per cent, production,
transport and equipment operators, 19.5 per cent and service workers 13.9 per cent, (Ghana
Statistical Service, 2005).

4.2.4 Social Characteristics

The total number of households in the region in 2000 was 626,611 giving an average
household size of 4.6. Among the districts, Dangme East has the highest average household
size of 5.3 followed by Dangme West 5.2. Ga district, which is more rural than Tema, has a
smaller average household size of 4.6, which is closer to that of AMA of 4.5 with Tema
having 4.8 (Ghana Statistical Service, 2005).

The stock of houses in the region numbered 287,840 in 2000. The AMA has 131,355 houses,
representing 45.6 per cent of all houses in the region, while Dangme East has 11,211 houses
representing 3.9 per cent of houses, Ghana Statistical Service (2005).

35
The Ghana Statistical Service (2005) identified 10 types of dwelling units which are occupied
by households. Three main types of dwelling units are prominent in the region; these are
rooms in compound houses, semi-detached houses and separate houses. About 43 per cent of
households in the region occupy rooms in compound houses. In all districts except Ga, this is
the main type of dwelling unit for households. The AMA has 50 per cent of households living
in rooms in compound houses, while Ga has 30.2 per cent of households who live in
compound houses.

4.3 Rental Housing in Urban Ghana

Housing is needed by all regardless of a person’s location, be it rural or urban. However,
rental housing is particularly crucial to urban housing provision. Rental accommodation has
usually been associated with low income households but it has also become the main form of
housing for middle-income households and new urban residents of all income levels. As
economic development takes place, towns grow because they are economically more
efficient. They bring together both the producers and consumers of a variety of goods and
services who demand housing in order to function effectively. This further compounds the
pressure on demand for housing in urban areas. With supply of housing lagging behind, the
end result is the continuous increase in housing deficit in urban areas. The housing shortage
in urban areas has now reached staggering proportions, and grows annually worse as the rate
of provision of new and satisfactory housing lags far behind the rate of population increase
(Gilbert and Gugler, 1992).

The urban housing situation in Ghana is not different from that of any developing country.
Ghana exhibits one of the fastest urban growths in the world. In 1960, nearly one-quarter (23
per cent) of the population lived in urban areas. By 2000, 8 million were urban dwellers and
it is expected that 14.4 million persons or 55.4 per cent of the population will be residing in
urban areas in the year 2015. Thus, more than 88 per cent of the total population growth
during 2000 – 2015 will be in urban areas. By 2025, urban areas will contain 63 per cent of
the population in the country (Ghana Statistical Service, 2005:214). This has a huge
implication on demand for housing and in particular rental housing. According to the Minster
of Water Resources Works and Housing Ghana needs to construct between 120,000 and
150,000 annually over the next 10 years in other to address the housing deficit,
(myjoyonline.com, 2010.)

36
The level of urbanization varies from one region to another. In 2000, the Greater Accra
Region was the most urbanized with 88 per cent urban dwellers, followed by Ashanti Region
with 51 per cent, Central Region with 37.5 per cent and Brong Ahafo Region with 37.4 per
cent. The least urbanized regions are Northern 26.6 per cent, Upper West 17.5 per cent and
Upper East 15.7 per cent and (Ghana Living Standard Survey, 2008).

Rural-urban migration is by far the most significant form of movement in long-term spatial
population redistribution in Ghana. Economic and income disparities which give rise to a
perception of availability of jobs in the urban areas appear to be the main driving force
behind rural-urban migration. Other factors that influence the decision to move out include
the presence of relatives and friends in the urban centres, availability of better housing,
superior health services and educational opportunities (GSS, 2005).

While there are clear advantages to urbanization in Ghana, serious disadvantages have
emerged as the pace of urbanization has outstripped the ability of city and town planners to
meet the requirements for services and infrastructure, particularly housing. The National
Development Planning Commission (NDPC, 2007) says Ghana has a backlog of accumulated
housing delivery totaling over 300,000 housing units with an estimated annual housing need
of 70,000 units.

Whereas about 72 per cent of houses in the rural areas are owner-occupied, only 41 per cent
of houses in urban areas are owner-occupied (GSS, 2005). House renting can be described as
more of an urban phenomenon, for while about 36 per cent of households in urban areas rent
their houses, only about 10 per cent of households in rural areas rent houses (Ghana
Statistical Service, 2005).

With over a third of the population in urban Ghana renting and the current rate of
urbanization which is likely to rise, rental housing is an invaluable option in the housing
provision particularly in urban Ghana just like in the cities of most developed countries.

37
4.4 Rent Control in Ghana
In Ghana, Rent Restriction Regulation was passed in 1942 to freeze rents at their 1939 levels
in other to stop eviction except only by the courts (Tipple, 1988). The Rent Restriction
Regulation of 1942 sub-section 1 of 4 states that “ no person shall let or accept a tenancy of
any dwelling house for payment of rent in excess of the rent receivable or payable in respect
of the same dwelling house on the 3rd day of September, 1939 except as is hereinafter
provided.

A year later thus, in 1943 a Commission was tasked to set a “fair and reasonable rents” for all
types of premises. The concept of “standard rents” was created for certain types of common
dwelling units (Section 3 of the Rent Restriction Regulation No. 18 of 1943).

The Rent Control Laws were modified continuously until 1963 when the Rent Act: Act 220
was enacted. It was the first to consolidate and amend the laws relating to the control of rent
and the recovery of possession of premises. The Rent Act of 1963 was changed from
“standard rent” to “recoverable rent” and it became the basis of rent to be recovered by
landlords. In assessing recoverable rent, consideration is given to the land value, recoverable
rent assessed for similar premises by the Minister, whom the functions under this Act has
been assigned by the President. Also considered are the estimated cost of maintenance,
current interest rate charged by Ghana Commercial Bank on overdraft and the relevant
factors.

The Provisional National Defence Council (PNDC) reinforced rent control law in January
1986 through PNDC Law 138 as modified by Legislative Instrument (LI) 1318. Rent levels
were fixed at ¢300.00 (currently 30 Ghana pesewas) for a single room and ¢400.00 (currently
40 Ghana pesewas) for a chamber and hall. However, these fixed levels were only valid for a
year. By March 1987 the law had expired. This meant that landlords and tenants were free to
negotiate on the rent to be paid (Kerlaer and Laam, 1994).

4.5 Background of Renters and Landlord

This section describes the background characteristics of renters and landlords. The
characteristics were analyzed in terms of age of respondents (both renters and landlords) and
the gender of renters.

38
4.5.1 Age of Renters
The study took interest in the age of renters to ascertain the age group that is more active in
the rental market and its implication on future housing demand. Figure 3 shows the various
age groups that depend on rental accommodation.

Figure 3: Age of Renters

Source: Author’s Field Survey, 2010.

It can be observed that renting occurs at all ages of adult life; however, renting is more
predominant among 31-40 years old persons. Per the typical family structure in Ghana,
children tend to live longer with their parents before moving into the housing market
particularly the rental market for the first time which partly accounts for why more renters are
within 30 to 40 years.

It is also because they are the most economically active age cohort and hence they are the
most engaged (employed) group. Again, according to the Ghana Statistical Service, the age
cohort 25-44 years forms the largest age group of the urban and national populations with
26.8 and 24.4 per cent respectively. This group also includes young graduates and also young
and or new families; they have small savings which is not enough for home ownership, hence
they opt for rental accommodation. This implies that with Ghana’s current population

39
structure and a continuous rural-urban drift, demand for rental housing will continue to rise. It
is therefore imperative that policies are put in place to address the situation.

4.5.2 Gender of Renters

The gender of renters is highly tilted towards males who form 78 per cent. This is further
reinforced by the finding that 2.3 per cent of males compared to 16.1 per cent of females
were spouses of the head of the household (Ghana Statistical Service, 2005). Gender of
renters is indicated in Figure 4.

Figure 4: Males and Females in Rental Units

Source: Author’s Field Survey, 2010.

4.5.3 Providers of Rental Housing

There are three main categories of providers of rental accommodation and they are
government, private landlords (both formal and informal) and companies or firms. Figure 5
shows that the main providers of rental housing are in the private sector (71 per cent) which
is dominated by the informal sector. The high proportion of private landlords is an indication
of the vital role that they (private providers) play in meeting the housing demand in an urban
community. The very vital role that private providers play makes a case why rental housing
must be given the needed attention partcularly by government. According to Gilbert (2004),
the small-scale providers are by far the most common form of landlords.

40
Figure 5: Providers of Rental Housing
Source: Author’s Field Survey, 2010.

According to UN-HABITAT (2003), the most consistent factor to distinguish landlords from
the rest of the population is their age. Landlords tend to be much older than most tenants.
That is, rental housing is mainly provided by pensioners who have on an average less than
five rental units and they are in the informal rental sector. Because of their age, landlords are
much more likely to be retired, live in larger properties than other families and have lived
longer in their current homes (UN-HABITAT, 2003). This is not different from what happens
in the Greater Accra Region rental market. As indicated in Figure 6, the age group that
dominates private providers of rental housing (landlords) is in sharp contrast to that of the
renters. That is, landlords who are 60 years and above formed 55 per cent of private
providers. Considering the fact that the group that dominates rental housing provision (64
years and above) according to Ghana Statistical Service, 2005 forms just 4 per cent, and with
an increasing urban population, demand for rental housing will continue to outpace the
supply. That is, there will continue to be deficit in housing provision particularly rental
housing. The age distribution of private providers of rental housing is shown in Figure 6.

41
Figure 6: Age Distribution of Landlords
Source: Author’s Field Survey, 2010.

4.6 Rental Holding of Landlords

The aim of this indicator was to find out the rental holding per landlord in order to establish

their role in the supply of rental housing.

42
Table 3: Number of Rental Holding per Landlord

Number of Rental Number of Landlords Percentage of

Holding Landlords (%)

1 4 5

2 19 25

3 11 15

4 21 28

5 7 9

6 or More 13 17

Total 75 100
Source: Author’s Field Survey, 2010.

Table 3 shows the number of rental holdings per landlord. From the table, 28 per cent have 4
rental holdings each while 25 per cent have 2 rental holdings each and 17 per cent have 6 or
more rental holding each. It is observed from the table that private landlords often have fewer
rental units. This is probably because most of the providers are pensioners as shown in figure
10, who have converted part of their house for renting. They are therefore not commercially
focused, where rental housing is seen as pure investment but rather they see it as a means of
supplementing income in old age. They also lack the capital needed to increase their rental
holding. According to Gilbert (2004), the key element that small-scale landlords share is that
the income from rental housing helps them to pay installments on their own land or house, to
meet the expense of repairs, maintenance or improvements, or even to pay their own rent.
Rental income may serve as a safety net against unstable employment or when moving from
regular salaried work to self-employment. Some landlords gave similar reasons for renting
which included supplementing income and for company in the house.

Although small scale landlords individually have fewer rental holdings, collectively they are
a force to reckon with in the supply of rental housing units in view of the fact that rental
housing is a vital housing option to urban dwellers as seen in Table 3.

43
4.7 Cost of Rental Units
Table 4 shows the rent charged by landlords as gathered from the field survey. On the
average a single room in Tema attracts a rent between GH¢40.00-60.00 per month, while a
chamber and hall and a two bedroom house attracts between GH₵100.00-150.00 and
GH₵200.00-400.00 per month respectively.

On the other hand a single room, chamber and hall and a two bedroom house cost GH₵20.00-
35.00, GH₵40.00-60.00 and GH₵100.00-200.00 per month respectively in Ashaiman,
Teshie-Nungua and Kpone Katamansu. The variation in rent charged is influenced by the fact
that Tema is a planned town that has all the necessary facilities and services such as water,
electricity, toilet facilities, and integrated sewerage system. Ashaiman, Teshie-Nungua and
Kpone-Katamansu are comparatively cheaper due to the absence as well as irregularity in the
supply of these services in such areas.

The study further revealed that 87 per cent of renters in the survey once lived in Tema, but
has moved to their present location that is Ashaiman, Dawhenya, Kpone Katamansu among
others due to the rising rent levels.

44
Table 4: Cost of Rental Units

Location Room Type Facilities Available Cost (GH₵)

Single Room B, T, W (shared) 40.00-60.00

Tema Community Chamber and Hall B, T, W, K (shared) 70.00-80.00

2, 4, 5, 7, 8, 9. Chamber and Hall B,T,W,K (exclusive) 100.00-150.00

Two Bedroom B, T, W, K (exclusive) 150.00-250.00

Single Room B, T, W (shared) 50.00-70.00

Tema Community Chamber and Hall B, T, K, W (exclusive) 100.00-250.00

3, 6, 10, 11, 12 Two Bedroom B, T, K, W (exclusive) 200.00-450.00

Single Room B (shared) 20.00-40.00

Single Room None 15.00-20.00

Tema New-Town Chamber and Hall B, W (Shared) 45.00-60.00

Chamber and Hall B, W, K (exclusive) 60.00-70.00

Two Bedroom B, W, T, K (exclusive) 80.00-120.00

Single Room B, (shared) 20.00-30.00

Single Room B, W, T (shared) 25.00-35.00

Kpone Chamber and Hall B (shared) 45.00-55.00

Chamber and Hall B, T, W (exclusive) 60.00-80.00

Chamber and Hall B, W, T (shared) 50.00-70.00

Two Bedroom B, W, T (exclusive) 100.00-150.00

Single Room B, W, T (shared) 30.00-40.00

Single Room None 15.00-20.00

Ashaiman Chamber and Hall B, W, T (shared) 45.00-60.00

Chamber and Hall B, T, K (exclusive) 60.00-80.00

Two Bedroom B, W, T, K (exclusive) 100.00-150.00

Single Room B, W, T, (shared) 40.00-60.00

45
 Chamber and Hall B, T, W (shared) 70.00-80.00

Teshie-Nungua Chamber and Hall B, W, T, K (exclusive) 80.00-120.00

Two Bedroom B, W, T, K (exclusive) 100.00-200.00

Single Room B, W, T (shared) 20.00-30.00

Dawhenya Chamber and Hall B, W, (shared) 50.00

Chamber and Hall B, T, K (exclusive) 50.00-60.00

Two Bedroom B, W, T, K (exclusive) 80.00-150.00

Single Room B, T (shared) 20.00-30.00

Afienya Chamber and Hall B, T, W (shared) 50.00-60.00

Chamber and Hall B, W, T, K (exclusive) 50.00-70.00

Two Bedroom B, W, T, K (exclusive) 70.00-100.00

LEGEND

Bathroom............ (B) Toilet.................. (T)

Water................. (W) Kitchen.............. (K)

Cost of Rental Units at Various Locations

Source: Author’s Field Survey, 2010.

4.8 Types of Dwelling Units

The four major types of dwelling units are compound houses, semi-detached houses
detached/separated houses and multi-storey flats. The high proportion of people in compound
houses is partly due to the differential cost of the other housing types. Thus since compound
houses have households sharing facilities like bath, toilet, kitchen and others, such rental
option is relatively less costly and more affordable to particularly the low income earners
who dominate urban population. For instance a chamber and hall in a compound house in
Nungua where facilities are shared cost GH₵70.00-80.00 per month whereas a similar unit
with facilities for exclusive use of household in the same neighbourhood cost GH₵ 80.00-
120.00 per month as seen in Table 4. It is also observed in Figure 7 that semi-detached
houses also form a significant form of rental housing option. The fairly high proportion of
semi-detached houses is explained by the fact that Tema was planned and therefore several

46
semi-detached estate houses were put up to attract people to purchase and settle there. This
overtime has been converted to rental units by their owners with mostly less than five tenants.

Figure 7: Types of Rental Housing Units in Greater Accra Region

Source: Author’s Field Survey, 2010.

4.9 Tenancy Agreement

Tenancy agreement is an important component in renting. The study therefore sought to find
out the extent to which tenancy agreement is used in the small-scale rental housing market in
the study area. From the study, 43 per cent of landlords said they had tenancy agreements
with their tenants compared to 57 per cent who had no agreements with their tenants. Albeit a
significant proportion (57 per cent) had no tenancy agreement it is important mentioning that
the widely proclaimed view as provided by literature that small-scale landlords do not have
tenancy agreement with their tenants is gradually being addressed. However, there still exists
a lot of work to be done to address the large number that have not come into full realization
of the importance of rent agreement in this volatile sector.

The nature of the agreement also needs a critical look. Many rental agreements between
landlords and tenants are personal and informal in nature, concluded outside of any
government regulatory framework or formal legal system. This informality and lack of
official documentation makes going to court for enforcement in the event of a breach by any
of the partners (landlord and tenants) virtually impossible.

47
4.10 Rent Advance
Rent advance is a key feature in the rental market in Ghana today. The study therefore looked
at the extent to which landlords demand rent advance from renters. From the study, 72 per
cent of renters said they have paid rent in advance as against 31 per cent who had not paid
rent advance. This is a confirmation of the role rent advance play in Ghana’s rental housing
market. Many landlords demand rent advance before renting out a unit. This implies that a
person need bulk sum of money before one can access rental accommodation in Ghana. The
amount renters pay as rent advance depends on the monthly rental charge. For example, it can
be seen in table 4 a chamber and hall with shared bath and toilet facility costs on an average
GH₵80.00 per month in Tema while a two bedroom apartment with facilities for exclusive
use attracts a rent of GH₵150.00-250.00 per month (Table 5). Tenants are made to pay two to
three years rent advance. Renters therefore end up paying GH₵1,920.00 for a chamber and
hall and GH₵3,600.00 for a two bedroom apartment up-front for two years stay – a clear
violation of Rent Act 220. The 1963 Rent Control Law, Act 220 clause 25, section 5,
mandates landlords to charge rent advance not in excess of six (6) months but landlords have
blatantly disregarded this provision. From the study, out of the 72 per cent of renters that said
they had paid rent in advance, 60 per cent had paid two years rent advance, 24 per cent had
paid one year of rent advance and 11 and 5 per cent had paid for 3 and 4 or more years in rent
advance respectively. The duration of rent advance according to respondents is their key
concern in renting today.

The impunity with which landlords disregard the rent law and governments inability to
enforce the law is partly due to the fact that supply of rental accommodation is inadequate
compared to the demand. In fact, it is a ‘take it or leave it situation’, where the renter has little
or no option. This phenomenon of rent advance is likely to continue and even get worse so
long as demand for rental housing outpace the supply of rental housing units.

Considering the very low income levels in Ghana and in applying the HUD benchmark for
housing affordability where more than 30 per cent rent-to-income ratio is considered as
unaffordable, such rent level can be described as high which is worsened by bulk payment in
the form of rent advance. It must be mentioned that the rent does not include cost of utilities
such as electricity, water, cooking fuel among others. For example an average public servant
who earns GH₵450.00 and pays a monthly rent of GH₵120.00 for a chamber and hall with

48
facilities for exclusive use of household would be spending approximately 27 per cent of his
income only on rent. An average of GH₵25.00 expenditure on utilities would certainly mean
spending more than 35 per cent of income on housing alone.

Some tenants said they are compelled to go for loans in other to meet the duration of rent
advance demanded, however their tenancy would expire while they have not completed
repayment of the loan they had taken. They hence have to compromise by moving out to a
new location mostly to the peri-urban areas. These areas which lack some basic facilities
since such areas are still under development hence they have relatively cheaper rents. It is
therefore not surprising that demand for rent advance features prominently among the
complaints made to the Rent Control Department in Tema.

However, some landlords in justifying the demand for rent said the rent advance provides
them with bulk sum to either increase their rental holdings or pursue other projects that
require bulk money since it was difficult to access credit from the financial institutions.

Figure 8: Duration of Rent Advance Paid by Renters

Source: Author’s Field Survey, 2010

4.11 Choice of Rental Housing

The choice of rental housing is dependent on several factors which vary from person to
person or household to household. This indicator therefore also sought to find out which of
the following; room space; availabilty of services; cost of rental unit and the distance from

49
rental unit to the city centre received priority considertaion in renters choice for a particular
rental accommodation.

Figure 9: Factors Considered Before Making Rental Choice

Source: Authors Fieldwork, 2010

As shown in Figure 9, 56 per cent said the availability of services in a rental unit is most
paramount in making rental choices. This is followed by cost of rental unit which form 18 per
cent, room space and distance to city centre both forming 13 per cent. The high proportion of
renters that said they would give preference to availability of services is an expression of the
fact that the availability of services such as potable water, toilet, kitchen, bathroom,
electricity among others is vital if housing is to serve its fundamental purpose of not only
meeting the shelter needs of humankind but more importantly improving the quality of life.

4.12 Availability of Services

The value of a rental housing unit can also be measured by how easy it is for tenants to access
utilities such as electricity, water and sanitation among others. The value of rental housing
diminishes considerably as access to utilities is farther away from the unit or is permanently

50
unavailable. The figure below indicates responses provided by the 110 renters to the survey
with regards to availability and accessibility to services. Figure 10 shows that 94 per cent of
renters have access to electricity while only 11 and 16 per cent have access to storeroom and
garage facilities respectively. The significant proportions that have access to electricity are
indicative of the fact that the study area is an urban setting and hence access to electricity is
the most common characteristic.

Although Figure 10 shows access to services, these services are variously located in the
housing unit. The services are further analyzed by giving details on the location of these
services, whether they are shared or for exclusive use of households and the influence they
have on rent charges.

Figure 10: Availability of Services in Rental Units

Source: Author’s Field Survey, 2010.

4.12.1 Location of Bathroom

Table 4 indicates the location or the kind of access that renters have in relation to bathroom.
As it can be seen from the table, 60 per cent shared their bathroom with other households; the
bathroom is however within the house. Another 24 per cent had bathroom for exclusive use
of household. It must also be emphasized that such households have made sacrifices in terms

51
of monetary compensation to enjoy this privacy. Thus rent levels are relatively higher for
such rental units. In Ashaiman Jericho, a chamber and hall that has bathroom for exclusive
use for the household has a rent of GH₵60.00-80.00 per month while a shared bathroom
facility as it pertains in a compound house attracts a rent of between GH ₵45.00-60.00 per
month. A choice for exclusive use of these facilities would thus mean committing more
household income into housing while enjoying some privacy at a cost.

A relatively smaller proportion of renters, that is 7 per cent, have their bathroom outside their
house. That is the bathroom is detached from the main rental unit. What is worrying is that, in
some instances tenants have to collect the bathed water from a pan or a dug pit and thrown
usually into a nearby gutter or on the street. This affects the quality of the environment and
certainly has health implications.

Another phenomenon as observed from the study is the use of public bathroom facility. It is
confirmed by the 7 per cent who said they use public bathrooms. Except in the case where a
public toilet has a bathroom service attached, all public bathrooms are solely privately owned
and managed. The use of a public bathroom attracts different charges depending on the
services offered. In situations where shower services are offered it attracts a fee of GH30p.
However, in instances where shower services are not provided and the user has to buy water
from the service provider, a bucket of water and the use of the bathroom cost GH20p and
where the user comes with his water, the use of the facility attracts a fee of GH10p. This
implies that a household of five members who take their bath once a day would be adding
GH₵30.00 or GH₵15.00 respectively to their monthly budget for only bathing. It must be
emphasized that this does not include water used by the household for other activities such as
cooking, washing among others.

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Table 5: Location of Bathroom

Location of Bathroom Number of Renters Per cent of

Renters
Personal Use 24 26
Shared Within 55 60
Outside 6 7
Public 6 7
TOTAL 92 100
Source: Author’s Field Survey, 2010.

4.12.2 Type of Access to Toilet Facility

Toilet facility is a prominent part of our lives and homes. Access to clean toilets improves
sanitation and environmental quality with its attendant benefits of healthy living and high life
expectancy. Albeit, 66 per cent said they had access to toilet, only 15 per cent of this number
has it for the exclusive use of their households, while 33 per cent shared toilet facility with
other households within the house. Public toilets also form a key component of urban life in
Ghana considering that as much as 33 per cent of renters said they make use of public toilet
while 10 per cent have their toilets outside the house. It must be noted however that from the
study, 27 per cent have no access to toilet facility. They thus use open space, polythene bags
and other crude means which affects the environmental quality. This brings to fore the need
for government to ensure that all houses be it rental or not have provision for adequate toilet
facility.

The availability or otherwise of toilet facility in a unit affects rent levels. Table 4 indicates
that in Nungua, a chamber and hall with shared water and toilet facilities cost on an average a
rent of GH ₵70.00-80.00 per month, while the same unit without these facilities attracts a
rent of GH₵50.00-60.00 per month. On the other hand, a similar unit with the above
mentioned facilities for exclusive use of household has an average rent of GH₵80.00-120.00
per month. In instances where tenants rely on the use of public toilet, a visit cost GH30p for a
Water Closet (WC) with toilet roll provided and KVIP cost GH20p if one is given toilet roll
and GH10p where paper is provided. Thus, a household of four who visit this facility (WC)
once a day would be adding a monthly bill of GH₵36.00 to the household budget.

53
Although some of these public toilets (all WCs) are wholly privately owned, most of them are
owned by the state but managed by private individuals. These individuals are in partnership
with the assemblies through the Public Private Partnership (PPP) policy of government at the
District Assembly level. This partnership is to ensure efficiency in service delivery,
accountability as well as sustainability of these facilities while meeting basic health standard
to meet the UN goal of health for all by 2020.

Two issues that arise in the use of public toilets are that: some of them close around 11:00 pm
and open at 4:00 am. Where these facilities are walled, it means users would have to find an
alternative either by using open space or defecate into polythene which is unhygyienically
disposed off during the hours of closure. This poses a serious environmental hazard. On the
hand there is loss of revenue in instances where the facility is not walled. This is because the
attendant would close and leave but since the facility is not locked-up people would use
without paying. This brings about loss of much needed revenue for development.

Figure 11: Type of Access to Toilet Facility

Source: Author’s Field Survey, 2010.

54
Table 6: Access to Potable Water

Location of Water Number of Renters Per cent of

Renters
Personal Use 21 29
Shared Within 30 41
Outside 16 22
Public 6 8
TOTAL 73 100
Source: Author’s Field Survey, 2010.

4.12.3 Access to Potable Water

The Global Water Supply and Sanitation Assessment 2000 Report (WHO/UNICEF, 2001)
identified Africa as having the lowest total water supply coverage of any region, with only 62
per cent of the population having access to improved water supply. Figure 10 shows that only
66 per cent of renters have access to potable water in one form or the other. Table 6 provides
details regarding the form of water access. It can be seen that while 29 per cent had water
within the structure for exclusive use of household, 41 per cent shared with other households
within the structure. In addition, although 22 per cent of renters have access to potable water,
their source is from a stand pipe outside the rental unit but meant for the use of households in
the rental unit. Another 8 per cent have their source of water from a public stand pipe
operated by private entrepreneurs.

A bucket of water from such private providers cost GH10p-30p.for in Kpone a sub-metro of
T.M.A, a 2 bedroom apartment which is connected by Ghana Water Company (GWC) has a
rent of GH₵120.00 per month while a similar unit without water services cost between
GH₵70.00-100.00 per month.

4.12.4 Location of Kitchen

Table 7 shows the location of kitchen for renters that said they had access to kitchen. While
52 per cent of this number had the kitchen for the exclusive use of the household, 24 per cent
said they shared their kitchen with other households with another 24 per cent saying they
have their kitchen outside the house. The implication is that, households that share kitchen

55
facility would lack privacy and hence a potential source of conflict particularly in instances
where the sharers are many. Those who have theirs outside also suffer a similar fate and are
often at the mercy of the weather.

Table 7: Location of Kitchen

Location of Kitchen Number of Respondents Per cent (%)

Personal Use Within 35 52
Shared Within 16 24
Outside 16 24

TOTAL 67 100
Source: Author’s Field Survey, 2010.

4.12.5 Location of Rental Units

The location of a housing unit is undoubtedly a key factor in the determination of rent
charges. According to Gilbert (2004), neighbourhoods with good transport links that are close
to centres of employment or serviced settlements attracts higher rents. Similarly, a high
environmental quality also influences rent charges. This is not different as this study found
that serviced areas like Tema, Sakumono estates, Teshie Nungua estates attracts higher rents
compared to Kpone, Adjei, Kojo, Afienya and Dawhenya which are considered as peri-urban
areas. For example, in Tema a two bedroom apartment with all facilities available for
exclusive use of household in communities 2, 4, 5, 7, 8 and 9 attract an average rent of
between GH₵120.00-250.00 for a month while a similar unit in Communities 3, 6, 10, 11 and
12 attracts a rent of between GH₵200.00-450.00 per month. This is because these
communities (3, 6, 10, 11 and 12) are considered as high class residential areas with greater
level of freedom in terms of noise and independence of household as well as high
environmental quality. It must be mentioned that in some of these areas rent is charged in
dollars. Likewise, a two bedroom apartment in Dawhenya cost between GH₵80.00-150.00
per month. This is because residents in Dawhenya have to make daily travels to the CBD
(Tema), work place, school, health facility among others which is about 15km from the CBD.
In an interview with some tenants in Kpone and Dawhenya, some said they were compelled
to move to their present location due to the rising cost of rent with particular stress on the
duration of rent advance that is demanded by landlords (2 years or more).

56
4.13 Factors Considered By Landlords Before Letting or Leasing
Owners of rental housing units (landlords) rent out not only on financial considerations. For
instance in Ghent, Belgium there is discrimination against risky groups such as single
persons, single mothers, asylum seekers and people living on social allowances (UN-
HABITAT, 2003). Similarly in Ghana, landlords rent based on several factors. This is shown
in table 8. From table 8, 37 per cent of landlords involved in the study said they
would first consider the marital status with preference to married couple. Such landlords said
that married couples are often more responsible particularly in the up-keep of the housing
environment. Another 31 per cent of landlords gave priority to the occupation of the renter
since it informs his ability to pay rent as well as undertake ‘minor’ maintenance work on the
structure. While 15 per cent would first consider the family size of the renter, 10 per cent said
that they would give preference to the age of renter.

It is important to note that 7 per cent of landlords said their main consideration before renting
out is the ethnic background of the renter. According to them they would not rent out to
certain ethnic group regardless of how much such a household or group is ready to pay. This
of course brings into sharp focus the problem of ethnicity and its adverse effect on national
integration and development. It is therefore imperative that government and civil society
continue addressing the issue of ethnicity and tribalism to promote peaceful coexistence.
Below is table 8, it shows the various considerations that landlords in the study said they
would make before letting out their property.

Table 8: Factors Considered By Landlords before Letting or Leasing

Factors Considered Number of Landlords Per cent of

Landlords
Occupation 23 31
Family size 11 15
Ethnicity 5 7
Age 8 10
Marital status 28 37
TOTAL 75 100
Source: Author’s Field Survey, 2010.

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4.14 Type of Building Material Used For Housing Unit
The type of material used for a structure (rental unit) among other things gives a strong
indication of the quality of housing unit. The study therefore considered it worthwhile
looking at the materials used for the structures as a means of helping assess the overall
quality of rental housing stock as well as their influence on rent charges.

4.14.1 Roofing Material

With reference to the material used for the roof of structures, 56 per cent of landlords in the
study said that their roof were made of aluminum, 11 per cent had tiled roofs and as much as
33 per cent had asbestos roof. Asbestos is often preferred because of its non-corrosive nature
as the study area is located within the coastal belt. However, the use of asbestos has a long
history of health problems. According to the U.S. Environmental Protection Agency (2005),
exposure to asbestos increases ones risk of developing lung cancer, “the most dangerous
asbestos fibers are too small to be visible. After they are inhaled, they can remain and
accumulate in the lungs. Asbestos can cause lung cancer, mesothelioma (a cancer of the chest
and abdominal linings), and asbestosis (irreversible lung scarring that can be fatal)”. The UN
International Labour Organization (ILO) has called for a worldwide ban on asbestos
production citing that there is an asbestos related death every 5 minutes and asbestos already
claims 107,000 lives each year. The ILO has warned that asbestos industry lobbyists must not
claim support of the ILO in its effort to continue asbestos production (Gelman, 2010). It is in
the light of this that a critical look should be given to this practice. Table 9 shows the various
materials used for the roof of structures. It must be mentioned that the roofing material has
some relation to price. In Tema Community 11, a two bedroom house with a tiled roof, water,
toilet and electricity cost between GH₵250.00 450.00 per month while a similar unit with an
aluminum roof cost between GH₵250.00-350.00 for a month. Similarly, a two bedroom unit
with tiled roof located in Dawhenya cost GH₵ 100.00-150.00 per month

Roof leakage significantly affects the quality of housing as it has the potential of damaging
the property of occupants of the house. From the study, 83 per cent of renters said their roofs
were not leaking while 17 per cent said their rooms were leaking. It must be mentioned that
the extent of leakage varies.

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Table 9: Material used for Roof

Type of Material Number of Landlords Per cent of

Landlords
Aluminum 42 56
Asbestos 25 33
Tile 8 11
Wood - -
TOTAL 75 100
Source: Author’s Field Survey, 2010.

Table 10: Material for Outer Wall of Rental Units

Material Number of Tenants Per cent of Tenants

Burnt brick 7 6

Cement blocks or concrete 76 69

Landcrete 22 20

Wood 5 5

Total 100 100

Source: Author’s Field Survey, 2010.

4.14.2 Material for Outer Wall of Rental Units

Table 10 shows the responses of tenants in the study on the type of material used for the outer
wall of their rental units, of which 69 per cent of renters had cement block or concrete outer
walls, with only 5 percent using wood. None had mud as its outer wall material. This may be
so because the study area is in an urban settlement where cement is easily accessible and
often more affordable than in the rural areas where scarcity pushes price up.

The material for outer wall also influences the cost of a rental unit. For example in Tema
Community 10, a two bedroom apartment with cement plastered and painted outer wall GH
200.00 per month. A similar unit with a terrazzo outer wall attracts rent ranging from GH
250.00-350.00 per month.

59
4.15 Condition of Foundation of Structure
In the study, 93 per cent had no part of the foundation of their structure exposed while 7 per
cent had some part of the foundation of their structure exposed. An exposed foundation of a
structure puts the structure and the occupants at risk. This may not only lead to destruction of
property, but also lost of life. Refer to Appendix One for the table indicating responses on the
condition of the foundation of structure.

Table 11: Regularity of Maintenance Work

Duration Number of Tenants Per cent of Tenants

Yearly 54 49
Every Two Years 14 13
Every Three Years 12 11
None 30 27
TOTAL 110 100
Source: Author’s Field Survey, 2010.

4.16 Regularity of Maintenance Work

Table 11 shows responses given by renters in the survey on whether maintenance work is
done on their rental unit. While 49 per cent said that maintenance work was done on yearly
basis, 13 per cent had maintenance done every two years and 11 per cent experience
maintenance every three years. However, 27 per cent said that they experience no
maintenance. Landlords of such renters do not re-invest part of the rent in improving the
quality of the housing unit. Renters thus bear full responsibility of cost of maintenance. This
is a potential source of conflict between landlords and renters. Landlords must be encouraged
to maintain a minimum quality for their rental units in order to improve quality of life.

In the same way, 84 per cent of the landlords in the study said they perform maintenance
work on their facility. This they said justifies why they increase their rents periodically to
meet the cost of maintenance.

As shown in Appendix 2, 65 per cent renters said that the form of maintenance work done is
painting of the structure. Another 24 per cent receive plastering while 11 per cent have work
done on their roofs. While 28 per cent of renters in the survey paid for any maintenance
work done, 72 per cent did not pay for maintenance, see Appendix 4. However, some renters

60
said in instances where they engage in major maintenance like roofing among others the cost
is surcharged against their rent which leads to extension of rent advance.

4.17 Factors that Influence Rent Determination

The rent charged by landlords is influenced by certain factors. This variable sought to find
out from the landlords the considerations they make in determining rents they charge usually
per month. While 53 per cent of landlords said they would first consider the services they
provide for the renters either for exclusive use or shared see Appendix 5 for detail. This is
evidenced in Table 4 where rental units such as two bedroom facility with electricity, water,
toilet and bath for exclusive use (ease of access) of household cost between GH₵80.00-
120.00 per month while a similar unit with similar facilities but shared with other households
cost between GH₵60.00-80.00 per month.

The location of a rental unit to a large extent also influences the rent charged by landlords.
For instance from Table 4, it can be observed that the cost of rent per month for a two
bedroom apartment in Kpone is GH₵100.00-150.00 for a month while a similar unit in Tema
communities 6, 10, 11, 12 cost from GH₵200.00-450.00 for the same period. The latter is
considered to have high environmental quality–less noisy, less crowded, good sewerage
system among others.

4.18 Payment of Tax on Rent by Landlords

A key problem of developing countries is the generation of revenue for development. The
situation is not different from Ghana. The study therefore wanted to find out the extent to
which Ghana is benefitting from the income made by landlords on rent charges. From the
study, although all landlords said they pay property rate none of them pay tax on the rent they
charge. This means that the nation is losing significant revenue. While the government may
seem to have a bottomless reserve of money, it actually needs a good and stable financial
resource to manage the whole nation. The revenue from domestic taxes including one from
rental housing provides this. Without it, the services offered to all citizens in the area of
public healthcare, social security, national defence, free basic education, public housing and
many others could not be effectively managed.

61
It is however not surprising that government is not benefitting from this vital area of revenue
generation. This is because government has neglected this sector of housing provision with its
focus on the illusive American dream of universal homeownership hence there is no policy
focusing on this sector. Even in the wake of the numerous tax reforms to broaden the tax base
to boost domestic revenue, there is no mention of rental housing as a potential source of
revenue for the state. In an interview with an official from the Rent Control Department
(RCD) in Tema, it came to light that the RCD have no records on landlords, hence it would
be difficult to tax them. The only records available on landlords are the complaints made to
the RCD.

4.19 Rent Control Department

The Rent Control Department was established in 1963 by Act 220 to create an enabling
environment for all to access decent and affordable accommodation to promote the socio-
economic development of Ghana. As the only formal institution mandated to handle issues
that may arise between landlords and tenants in rental housing, this section sought to find out
from officials of RCD, issues that landlords and tenants bring to the department as well as the
challenges that confronts the department in the discharge of their duties.

Figure 12 indicates the number of complaints made by landlord and tenants to the Rent
Control Department in Tema. The Rent Control Department in Tema serves the three districts
of the study area and well beyond. According to the department, the major complaints made
by landlords include recovery of possession; rent arrears and nuisance while tenants’ main
complaints include inducement to quit and demand for rent advance. As can be seen from
Figure 12, in 2007 landlords made 1,230 complaints about their tenants while 780 complaints
were made by tenants against their landlords (see Appendix 3). These complaints dropped
sharply in 2008; however, 2009 according to the official had experienced the highest number
of cases reported to the department in a decade. The department recorded 1,450 complaints
from landlords and 893 complaints from tenants in 2009. This may be due to the global
economic downturn which brought about unprecedented crisis in the housing market all over
the world. It is evidenced from the table that indeed rental housing in Ghana is bedeviled with
challenges that all stakeholders must be concerned with and not only that but also make
frantic effort to promote this vital form of housing supply.

62
However, the study found out that, the Rent Control Department is heavily under resourced
both-human and material resource. The study revealed that, the RCD nationwide has only one
vehicle, a 4 X 4 Nissan pick-up vehicle that is used at the head office. Thus, all other
branches operate without a vehicle. This is a serious challenge to the effectiveness and
efficiency of staff of the department in the discharge of their mandate.

Also, the department has only 23 branches countrywide including the national headquarters.
This certainly is inadequate if issues on rental housing can be effectively handled to promote
the relevance of this very important option of housing provision. The total staff strength of
the RCD throughout Ghana is 66 with Tema having only 3 officers who serve more than 3
districts performing both administration and field work. The RCD in Tema have 2 offices
with one computer. The 3 officers occupy one office with the other office for the Head of the
department. This is certainly woefully inadequate considering the quantum of complaints
that are made (see Figure 12 or Appendix 3) by landlords and tenants that need thorough
investigation.
This is a clear manifestation of government’s neglect of this very important sector in meeting
the housing need, a basic need for that matter.

Figure 12: Number of Complaints Made by Landlords and Tenants to Rent Control
Department in Tema
Source: Author’s Field Survey, 2010.

63
 CHAPTER FIVE

SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION

[[

5.1 Introduction
This chapter presents the summary of the findings of the study, the recommendation made
based on the findings, and conclusions that have been drawn. Included in this chapter is the
areas that needs further research.

5.2 Summary of Findings

The goal of the study was to assess the prospects and challenges of rental housing in Greater
Accra Region. The study was to ascertain the practical issues that confronts rental housing
today. After reviewing literature and through interview with landlords, tenants and rent
control officials, the following findings were made.
i. Rental housing is a form of housing that is patronized by all age groups engaged in
the housing market however demand for rental accommodation is dominated by the
age cohort 30-40 years.
ii. The main providers of rental housing are in the private sector. The providers
(landlords) are dominated by persons who are 60 years and above. However, this age
cohort according to 2000 PHC forms just about 4 per cent of population in Ghana.
The very small number of providers that rather dominates the supply of rental
housing means that, supply will always lag behind demand – a recipe for price
escalation in the rental market.
iii. The issue of tenancy agreement was lacking in the rental housing market in Ghana.
As much as 57 per cent of renters had no contract with their landlords. Landlords said
they did not deem it relevant to have an agreement. The absence of tenancy agreement
often leads to conflicts between landlords and tenants since there is nothing that binds
the behaviour of both the landlord and the renter. It makes both enforcement and
compliance to changing conditions very difficult.
iv. There is blatant disregard for the rent laws of Ghana. Contrary to the provisions of
Rent Act, Act 220, clause 25, section 5 of 1963 which mandates landlords to charge
rent advance not exceeding six months, some landlords charge over three years rent

64
 advance. While 60 per cent had paid 2 years in rent advance, 24 per cent had paid 1
year rent advance.
v. Renters make several considerations before settling for one form of accommodation
or the other. A key factor that influences a choice of housing unit according to the
study is the availability of services which include access to potable water, toilet
facility and electricity among others. Equally considered here is the ease of access to
these services. The cost of the renting is another major factor that influences the
choice of rental accommodation, this factor often compels renters to compromise
quality and privacy.
vi. Landlords on the other hand gave priority to married couple in their quest to rent out
their units. The occupation of renters is also a key factor that determines who a
landlord rents out to. The main concern here is to help determine one’s ability to pay
rent and utilities and also contribute to the maintenance of the house.
vii. The main form of material used for the roof of a house as revealed by the study is
aluminum, forming 56 per cent of response given by tenants. A disturbing situation
however is the 33 per cent who had asbestos roofs although it is even banned in
countries that produce it. Asbestos is known to have serious health implications as it
is very cancerous when inhaled over a period of time. Its wide use as found in the
study is a source of worry.
viii. The material that is commonly used for the outer wall of rental housing units is
cement blocks. In the study, 69 per cent of renters have cement blocks as their outer
material. Cement is the main binding material commonly used due to ease of access
as well as its relatively cheaper price compared to other options such as tiles, burnt
bricks, terrazzo, stones among others.
ix. Landlords periodically, mostly on yearly basis, conduct some form of maintenance
work. The common maintenance work done is painting. However, 27 per cent of
renters said their landlord do not maintain their facility at all.
x. In some instances tenants are surcharged for any maintenance work done on the
housing unit – a potential source of conflict.
xi. All landlords said they pay property rate although from further discussion, it was
found that most of them were in arrears. Again, none of them pay tax on the rent they
charge. That is the nation is losing revenue from the neglect of this vital option of
housing provision which could bring significant domestic revenue to the state for
development.

65
 Rent Control Department is seriously under resourced. The department nation-wide
has only one vehicle, a 4 X 4 Nissan pick-up vehicle that is used at the head office.
That is, all other branches operate without a vehicle. This is a serious challenge to the
effectiveness and efficiency of staff of the department in the discharge of their
mandate.
The department has only 23 branches country-wide including the national head
quarters. This certainly is inadequate if issues on rental housing can be effectively
handled to promote the relevance of this very important option of housing provision.
xii. The total staff strength of the RCD throughout Ghana is 66 with Tema having only 3
officers who serve more than three (3) districts performing both administration and
field work. This is certainly woefully inadequate considering the quantum of
complaints that are made (see Figure 12 or Appendix Three) by landlords and tenants
that need thorough investigation. It is a clear manifestation of government’s neglect of
this very important sector in meeting housing need, a basic need for that matter.
xiii. In addition, the study revealed that variation in rents charged at different locations is
largely due to availability of services as well as ease of access to these services and
environmental quality.

Prospects of Rental Housing

xiv. For government to broaden the tax base in order to increase revenue for development,
it must also consider the rental housing sector which is dominated by small-scale
providers who are not captured by the tax net. This could be done through a deliberate
policy that recognises rental housing not only in principle but ensuring that pragmatic
steps are taken to identify and have decentralized local inventory of rental housing
both by the Rent Control Department and the Metropolitan, Municipal and District
Assemblies (MMDAs). Also landlords should be supported to maintain a minimum
housing quality as well as increase their rental holdings while helping to meet the
housing needs of the nation particularly in urban Ghana. It is through this that the
government can succeed in getting their co-operation regarding payment of tax.
xv. Again, rental housing has the potential of freeing the government from the social
pressure of providing housing for the populace. The private sector has the potential of

66
 providing housing to meet the housing demand if they are supported and well
regulated through progressive policies.
xvi. Similarly, rental housing also creates employment not only to the providers but all
those whose services are employed right from the construction stage which include
masons, carpenters, painters, electricians and a host of others. This helps to improve
on the unemployment level as well improving upon the quality of life.
xvii. There is also the need to ensure that landlords provide minimum services in their
rental units. This implies that government must also provide the basic infrastructure
needed such as roads, electricity, water among others from which landlords can tap
from due to their high capital requirement.
xviii. Lastly, rental housing has the potential of reducing housing deficit considering the
fact that 71 per cent of the providers of rental housing from the study are private
providers with the state only providing just 12 per cent.

Challenges of Rental Housing

xix. There is lack of recognition of rental housing by the government. This is

demonstrated by the a research conducted by the Bank of Ghana research team in
November, 2007 titled ‘The Housing Market in Ghana’ which was absolutely silent
on the rental housing market in Ghana.
xx. Poor supervision by the RCD due to lack of both personnel and material resources is
also a major concern to the rental housing market in Ghana.
xxi. The lack of data on landlords and tenants is also a challenge to the efficient
functioning of the sector
xxii. Availability of credit as well as land tenure system are key contributors to the supply
of rental units which unfortunately are affecting the supply of rental units in Ghana.
While small scale providers lack collateral to access credit, the land tenure systems as
it pertains now (private ownership) makes it difficult to access land.

67
5.3 Recommendations
Based on the findings from the study, the following recommendations were made in order for
rental housing to play its proper role in the nation’s quest to meet its ever growing demand
for housing;

Tenancy Agreement

i. It is recommended that government should develop a standard rent agreement outline,

form or criteria that all landlords would use to ensure standardization. It would lead to
the situation where there would be high compliance rate. Education on the need for
tenants and landlords to have formal contractual arrangement should also be initiated
by government and civil society. The Rent Control Department, the District
Assemblies and National Commission on Civic Education should be resourced and
empowered so they can educate and as well ensure adherence to standards by the
entire citizenry. This would go a long way to address the rifts that exist between
landlords and renters which would bring sanity into the rental sector.
ii. The Rent Control Department should be restructured and resourced to enable it deal
with the changing trends in the rental housing sector such as handling complaints
brought to their office by landlords and tenants. This would require legal support
through revisiting the existing laws on renting in Ghana.
iii. Education on the need for tenants and landlords to have formal contractual
arrangement should also be initiated by government and civil society.

Prospects of Rental Housing

iv. For government to broaden the tax base in order to increase revenue for development,
it must also consider the rental housing sector which is dominated by small-scale
providers who are not captured by the tax net. This could be done through a deliberate
policy that recognises rental housing not only in principle but ensuring that pragmatic
steps are taken to identify and have decentralized local inventory of rental housing
both by the Rent Control Department and the Metropolitan, Municipal and District
Assemblies (MMDAs). Also landlords should be supported to maintain a minimum
housing quality as well as increase their rental holdings while helping to meet the
housing needs of the nation particularly in urban Ghana. It is through this that the
government can succeed in getting their co-operation regarding payment of tax.

68
 v. Again, rental housing has the potential of freeing the government from the social
pressure of providing housing for the populace. The private sector has the potential of
providing housing to meet the housing demand if they are supported and well
regulated through progressive policies.
vi. There is also the need to ensure that landlords provide a minimum level of services in
their rental units. This implies that government must also provide the basic
infrastructure needed such as roads, electricity, water among others from which
landlords can tap from due to their high capital requirement.

Rent Control Department and Rent Control Act

vii. Government must endeavour to review the Rent Control Act. Sections of the Act
seem to have outlived their relevance in today’s rental housing market. The blatant
disregard for the Act attests to this. Currently, the strict adherence to the Act could
also become a disincentive for the supply of rental housing.
viii. It is also suggested that the Rent Control Department should be resourced both in
terms of the human capacity as well as its material needs. This would ensure that there
is effective monitoring of activities in the rental sector. The monitoring would ensure
that landlords would provide accurate data on their rental holding, the condition of the
units and how much they must pay as tax on their income from renting.

Rent Advance

ix. The duration of rent advance demanded by landlords must be critically examined by
all stakeholders to reduce the cost burdens imposed on households. The two or more
years of rent advance demanded by landlords is affecting the ability of renters to
access decent housing to ensure fulfilment of live. From the study renters said they
would prefer paying rent on monthly basis instead of the one, two or three years rent
advance they are compelled to pay in bulk.

69
5.4 Conclusion
The need to provide adequate, suitable and equitable housing to improve quality of life has
remained a major priority of governments of developing countries. Yet, since the problem of
housing is complex and pressing, no nation has been able to provide adequate housing of
acceptable standard for all citizens. Even though housing is a basic necessity of life, more
than half of the population in Ghana lives in poor houses (Government of Ghana, 2005)
where they have little or no access to adequate sanitary facilities, water and warmth to meet
their daily physical needs.

Rental housing is a major housing option particularly in urban settlements. According to

GSS, 2005, 37 per cent of housing in the Greater Accra Region occurs in the rental sector.
However, this sector has not had the deserved attention. This study was therefore set out to
assess the types and state of rental accommodation in Ghana, assess the role of rental housing
in meeting housing need in Ghana and to examine the prospects and challenges of rental
housing in Ghana

Based on the strength of the findings of the study, the following conclusions are drawn:

1. The rental housing sector just like any developing country is a neglected feature
which does not feature on the policy table of the state. A Bank of Ghana report in
November 2007 on ‘The Housing Market in Ghana’ made no mention of the rental
housing sector as a component of the housing market in Ghana.
2. It is also concluded that the duration (usually two years or more) of rent advance
demanded by landlords is compelling renters who cannot afford to pay compromise
quality by moving into sub-standard units that lack the requisite housing attributes or
to areas with poor environmental quality.
[[[[

3. Although rental housing is a neglected feature, it has the potential of boosting the
revenue base of the nation. It must therefore be tapped.

Rental housing is an important component of any functioning housing market since more
people particularly in the urban setting rely on it for their housing needs. It must therefore be
given the needed attention for the nation to derive full benefits. The Rent Control Department
and the MMDAs must endeavour to have full inventory of all landlords.

70
Areas of Further Research

Lastly, the following areas have been identified for further study;

i. The impact of access to credit by small-scale landlords on housing supply.

ii. Land tenure system and supply of rental housing in urban Ghana.

iii. Impact of Public-Private partnership in meeting housing needs.

71
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Belsky, E. S. and Drew, R. 2007. Taking Stock of the Nation’s Rental Housing
Challenges and a Half Century of Public Policy Responses. Cambridge, MA:
Prepared for Revisiting Rental Housing: A National Policy Summit, November
2006, Joint Center for Housing Studies of Harvard University
Belsky, E. and Calder, A. (2004) Credit matters: low income assert building challenges in
a dual financial service system. Joint Center for Housing Studies, Harvard
University, Working Paper BABC 04-1
Block, W. (2002). “A Critique of the Legal and Philosophical Case for Rent Control.”
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International Symposium on Architecture and Housing Rights, held at the
School for Architecture and Design, King Mongkut’s University of Technology
Thonburi, Bangkok, 31 May-3 June 2006
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Donald R. Haurin and H. Leroy Gill. 2002 “The Impact of Transaction Costs and the
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Republic of South Africa, Bonn.
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Sustainable Development, 2-5 October 2001, Nairobi.

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Ghana Living Standard Survey, (2008).

Ghana Statistical Service (2005), 2000 Population and Housing Census

Glaeser, Edward L. & Luttmer, Erzo F. P. 1997. "The Misallocation of Housing Under
Rent Control," NBER Working Papers 6220, National Bureau of Economic
Research, Inc.
Government of Ghana, (2005) , Draft Housing Policy
Green, Richard K., and Patric H. Hendershott. Homeownership and the Duration of
Unemployment. Working Paper. 2001.
Grimes, Paul W. & Chressanthis, George A., 1997. "Assessing the Effect of Rent Control
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37,
Korboe, D., (1992), “Family houses in Ghanaian cities: To be or note to be?”, Urban
Studies, vol. 29, pp. 1159-1172.
Kumar, S. (2001), Social relations, rental housing markets and the poor in urban India,
Final Report to DFID.
Leaf, M. (1993), Urban Housing in Third World Economies: An Overviewof the
Literature. Vancouver: Centre for Human Settlements, School of Community
and Regional Planning, The University of British Columbia.
Malpezzi, S., (1990), “Rental housing in developing countries: Issues and constraints”, in
UNCHS, Rental housing: Proceedings of an expert group meeting, Nairobi, pp.
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Malpezzi, S and Ball, G., (1991), “Rent control in developing countries”, World Bank
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case of Kumasi. Bi – annual Journal of the Building and Road Research
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Ng, C J., (2006), ‘Designing a Questionnaire’ Malaysian Family Physician Pp 32-35

Salmen, L.F., (1987), Listen to the people, Oxford University Press.

Sarantakos, S., 1998, Social research, 2nd edition, McMillan Publishers Australia Pty Ltd.
South Yarra

Satvik, Dev and Paramita, Datta Dey(2006). Rent Control Laws in India : A Critical
Analysis
Tarki, T.K., (2002), “Policies to improve the quality of life in the private rental housing of
the Kathmandu Metropolitan city: Research proposal”, mimeo.
Tipple A. G. , (1988), The History and Practice of Rent Control in Kumasi, Ghana. World
Bank, Urban Development DivisionWorking Paper No.88-1, 19888.

Turner, J., (1986). Future directions in housing policies. Habitat International, 10(3), 7-
25.

Turner, M.A. 1990. “Housing Market Impacts of Rent Control—The Washington, D.C.
Experience.” Urban Institute Report 90-1, Washington D.C.: The Urban
Institute Press.
UNCHS (1989), Strategies for low-income shelter and services development: The rental
housing option, Nairobi.
UNCHS (1990), Rental housing: Proceedings of an expert group meeting, Nairobi.
UNCHS (2001a), Cities in a globalising world: Global Report on Human Settlements
2001, Earthscan
UNCHS, (1996), An Urbanizing World: Global Report on Human Settlements 1996,
Oxford University Press, Oxford.
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Housing Rights Programme Report no. 2, Nairobi. Available from

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UN – HABITAT (2003). Rental Housing-An Essential Option for the Urban Poor in
Developing Countries

WHO/UNICEF, 2001. Global Water Supply and Sanitation Assessment 2000 Report.

75
 APPENDICES

APPENDIX 1
Condition of Foundation of Structure

Condition of Foundation Frequency Per Cent (%)

Exposed 8 7

Not Exposed 102 93

Total 110 100

APPENDIX 2
Type of Maintenance Work Done

What Type Maintenance Number of Respondents Per cent (%)

is Done

Roofing 9 11

Plastering 19 24

Painting 52 65

TOTAL

80 100

76
 APPENDIX 3
Number of Complaints made by Landlords and Tenants to Rent Control Department

YEAR LANDLORD TENANTS

1,230 780
2007

820 782
2008

1,450 893
2009

2010 1,311 631

TOTAL 4,811 3,086

APPENDIX 4
Payment for Maintenance

Do You Pay for Number of Respondents Per cent (%)

Maintenance

Yes 22 28

No 58 72

TOTAL 80 100

Table 13: Payment for Maintenance Work Source: Author’s Field Survey,
2010.

77
 APPENDIX 5
FACTORS THAT INFLUENCE RENT DETERMINATION

Factors Considered Number of Landlords Per cent of

Landlords

Occupation of Renter 7 9
Room Size 9 12
Availability of Service 40 53

Location of Housing Unit 19 26

Total 75 100

78
 APPENDIX 6

KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

COLLEGE OF ARCHITECTURE AND PLANNING

DEPARTMENT OF PLANNING

MSc. DEVELOPMENT POLICY AND PLANNING

The prospects and challenges of Rental Housing in Greater Accra Region

This research is part of a Master’s Thesis being conducted in the Department of Planning,
Kwame Nkrumah University of Science and Technology (KNUST), Kumasi. The study is
based on selected sample in Greater Accra Region, so your participation is important. The
outcome of this study will enhance knowledge on the prospects and challenges of rental
housing in Ghana.

Participation in this study is voluntary, and all who participate will remain anonymous. Your
name is not needed. All information offered will be treated confidential; the results will be
presented in a manner that no individual may be recognized.

QUESTIONAIRE FOR LANDLORD

Basic Household Characteristics

1. Location…………………………………………………….…………………………

2. House Number…………………………………………………….……………………

3. Age of Landlord………………………………………………………….……………

4. Home Town of Landlord ……..………………………………………………………

5. How many households do you have in this house? .......................................................

6. How many members are in;

i) Household No. 1 …………………………………………

ii) Household No. 2 …………………………………………
iii) Household No. 3 …………………………………………
iv) Household No. 4 …………………………………………
v) Household No. 5 …………………………………………

79
 7. What is the total number of rooms in this house? …………………………………
8. How many members are there in your household? …………………………………
9. How many of the rooms in Question 7 are habitable? ………………………………
10. How many rooms does your household occupy? ………………………………….

Income and Expenditure

11. What is your occupation? .........................................................................................

12. What is your place of work? …………………………………………………………

13. How much do you earn in a month? …………………………………………………

14. Do you receive remittance? Yes No

15. If yes to Question 14, how much do you receive per month? ……………………….

16. Do you have any other source of income? (Specify) …………………………………

17. Do you pay property rate? Yes No

18. Do you pay income tax on rent charge? Yes No

19. How much does your family spend on each of the following?

ITEM DAILY WEEKLY MONHLY

Food
Clothing
Education
Energy
Water
Transport
Health
Others

Housing Characteristics

20. What is your house type? Single Storey Multi-storey Detached

Semi-

detached Compound Other Specify………………………………………….

21. How did you acquire your house? Built Purchase Lease Gift

Other (Specify) …………………………………………………..

80
 22. How many tenants do you have? ………………………………………………..

23. What are your criteria for choosing your tenants? Prioritize by numbering

Financial consideration Occupation Family Size Ethnicity

Age Marital Status Sex (Male/female) Other (Specify) ………….............

24. How many rooms have you rented out? ………………………………………………

25. When was your house built? ………………………………………………………

26. What material is your roof made of? Aluminum Asbestos Landcreate

Tile Thatch Wood

27. What material is your wall made of? Sandcreate Burnt Brick Lancreate
Wattle and Daub Mud Wood Other (Specify)

28. Which of these facilities do you have in your house? Tick where applicable

Kitchen Bathroom Potable water Toilet Garage

Electricity

29. Where are the following facilities located?

i) Kitchen: Shared within Outside Personal use None

ii) Bathroom: Shared within Outside Personal use

Public None

iii) Toilet: Shared within Outside . Personal use

Public None

iv) Storeroom: Shared within Outside Private use

Public None

Maintenance

30. What kind of maintenance did you do in the last two (2) years?

Roofing Plastering Painting None Other (Specify)……………….

31. If none to Question 28, why? ………………………………………………………

81
 32. What priorities do you have for improvement in the quality of facilities in this house?
Number them in the other of importance.

Addition of Rooms Bathroom Provision of electricity Toilet facility

Wall reinforcing Kitchen Water supply Other (Specify)……………….

Rent

33. Did you take rent in advance? Yes No

34. If Yes to Question 31, for how many years?

……………………………………………

35. How much in the form of rent advance did you demand from renters?
………………...

36. How much do you collect in the form of rent in a month for the following dwelling
units?

i) Single room ……………………………………………………..

ii) Chamber and hall ……………………………………………….

iii) Two bedroom self-contained …………………………………...

37. What factors do you consider in determining rent for each type of accommodation?

Occupation of renter Room size Availability of facilities

38. How often do you receive as rent? Monthly Yearly Every two (2) years
Every three (3) years Other (Specify) …….………………………..……

39. Do you have tenancy agreement with your renter(s)? Yes No

40. Why? …………………………………………………………………………………

41. Is it worth venturing into rental housing? Yes No

42. Why? ………………………………………………………………………………

…………………………………………………………………………………………

43. What kind of assistance do landlords need to improve on the quality and quantity of
rental accommodation? ………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

82
 APPENDIX 7
QUESTIONNAIRE FOR RENTERS

Basic Household Characteristics

1. Location............................................................................................................................

2. House Number..................................................................................................................

3. Age of Renter...................................................................................................................

4. Sex of Renter Male Female

5. Hometown........................................................................................................................

6. Previous Residence...........................................................................................................

7. How many members are there in your household? .........................................................

8. How many rooms does your household occupy? ............................................................

9. What is your house type? Single Storey Multi-Storey Detached

Semi-Detached Compound House Other (Specify)

.............................

Income and Expenditure

10. What is your occupation?................................................................................................

11. Where is your place of work? ..........................................................................................

12. How much do you earn? Daily.................. Weekly.................. Monthly........................

13. Do you have members of household working and contributing to the household

budget?

Yes No

83
 14. If Yes to Question 13, how many of them are

a) Working? ...................................................................................................................

b) What type of work do they do? (Specify)..................................................................

15. If Yes to Question 13, how much do they contribute per month? ...................................

16. Do you receive remittance? Yes No

17. If Yes to Question 16, how much do you receive? .........................................................

18. Do you have any other source of income? (Specify)......................................................

19. How much does your family spend on each of the following?

ITEM DAILY WEEKLY MONTHLY

Food
Clothing
Education
Energy
Water
Transport
Health
Others

Housing Characteristics

20. What is the condition of your roofing? Leaking Not Leaking

Ripped Other (Specify).......................................................................................

21. What is the state of the foundation of the house? Exposed Not Exposed

84
 22. What is the condition of the walls of your house? Cracked Not Cracked

23. What material is your roof made of? Aluminum Asbestos

Landcrete

Tile Thatch Wood Other (Specify).................................

24. What material is your wall made of? Sandcrete Burnt Brick

Lancreate Wattle and Daub Mud Wood

Other (Specify) ..................

25. Which of these facilities do you have in your house? Tick where applicable. Kitchen

Bathroom Potable water Toilet Garage Electricity

26. Where are the following facilities located?

i) Kitchen: Shared within Outside Personal Use None

ii) Bathroom: Shared within Outside Personal Use

Public None

iii) Toilet: Shared within Outside Personal Use

Public None

iv) Storeroom: Shared within Outside Personal Use

Public None

27. Do you have problem with the facilities in the house? Yes No

28. If yes to question 27, which ones? Tick as applicable. Water Kitchen

Electricity Bathroom Toilet

29. Who is your landlord? Private Landlord Government Company/Firm

85
 Other (Specify)...............................................................................................................

Maintenance

30. How often is maintenance done on the housing unit you occupy?................................
Every year Every two years Every three years

None Other (Specify)...............................................................................

31. What kind of maintenance is done? Roofing Plastering Painting

Others (Specify)................................................................................................................

32. Do you pay for maintenance work done on your house? Yes No

33. If Yes to Question 31, how much do you pay?

Weekly..........Monthly.........Yearly.......

Rent

34. Did you pay rent in advance? Yes No

35. If Yes to Question 34, how much did you pay in rent in advance?.............................

36. If Yes in Question 34, how many years rent advance did you pay?...........................

37. What factors do you consider in renting? Prioritize by numbering them.

Room Size Availability of Services Cost of Rent Distance from city

centre

38. Which of these do you intend to do in the future? To build a house Buy a
house Rent a house Rent a room Stay in a family house

Other (Specify).....

39. Which of these do you prefer most in your house? Privacy Affordability

Appearance Material Used Size of Internal and external space

Other (Specify) ................................................................................................................

40. Do you have a written contract/agreement with your landlord? Yes No

86
 APPENDIX 8
QUESTIONNAIRE FOR RENT CONTROL OFFICE

1. Name of Institution…………………………………………………………………

2. Location of Institution………………………………………………………………

3. Year of establishment…………………………………………………………………...

4. What is the main purpose of establishment? ...................................................................

…………………………………………………………………………………………

…………………………………………………………………………………………

5. How many personnel do you have in this institution? Give details.

i) Administration …………………………………..

ii) Field Supervisors ……………………………….

6. How many personnel do require for this institution? Give details.

i) Administration ……………………………………

ii) Field Supervisors …………………………………

7. How many vehicles does this institution have? Provide details.

i) …………………………………………………………………..

ii) …………………………………………………………………..

iii) …………………………………………………………………..

iv) ………………………………………………………………….

8. What are the conditions of the vehicles?

…………………………………………………………………………..

9. How many vehicles does this institution need to function effectively? Give type and
number required.

i) …………………………………………………………………………………

87
 ii) …………………………………………………………………………………

iii) …………………………………………………………………………………

iv) …………………………………………………………………………………

v) …………………………………………………………………………………

10. What equipment does the institution require to function effectively? Provide detail.

i) ..............................................................................................................................

ii) …………………………………………………………………………………

iii) …………………………………………………………………………………

iv) …………………………………………………………………………………

v) …………………………………………………………………………………

11. What is the tenureship of these premises? Rented State owned

12. How many offices have this institution? ………………………………………………

13. How many offices does this institution require? ………………………………………

14. What is the average space of the offices? ……………………………………………

15. Do you have information on rent charged by landlords? Yes No

16. If Yes to Question 15, how much is charged for the following dwelling units in Tema?

i) Single room ……...……………………………………………………………

ii) Chamber and hall ………………………………………………………………

iii) Two bedroom house ……………………………………………………………

iv) Other (Specify type and amount) ………………………………………………

17. If Yes to Question 15, how much is charged for the following dwelling units in
Ashaiman?

i) Single room ……...……………………………………………………………

88
 ii) Chamber and hall ………………………………………………………………

iii) Two bedroom house ……….…………………………………………………

iv) Other (Specify type and amount) ………………………………………………

18. How many rent cases did you record for last year? …………………………………

19. What is your view on the current rent control law? ……………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

89
 APPENDIX 9
Complaints by Landlords and Tenants

Complaints by Landlord Complaints by Tenants

Recovery of Rent Arbitrary Rent Increase

Recovery of Property Refusal to Refund Rent Advance

Quarrelsome Character Inducement to Quit

Poor Environment Quality Demand for Rent Advance

Nuisance

APPENDIX 10
Districts in Greater Accra Region
Name of District Capital
Accra Metro. Accra
Adenta Municipal Adenta
Ashaiman Municipal Ashaiman
Dangme East Ada-Foah
Dangme West Dodowa
Ledzokuku-Krowor Municipal Teshie-Nungua
Ga East Municipal Abokobi
Ga West District Amasaman
Tema Metro. Tema
Weija Municipal Gbawe

90