The Ashanti Regional Director of the Rent Control department, Mr. Douglas Mackenzie Kpodo, has reminded landlords of their obligation to pay rent income tax to enable the government to provide total development.
The Regional Director noted that most landlords refuse to pay their rent tax and cautioned landlords against their neglect to honour rent tax to the government, through the Ghana Revenue Authority (GRA).
He told the paper in an interview that paying tax on rent is not novel and that the Ministry of Finance allows the Rent Control to coordinate with the GRA in the collection of the Rent taxes and makes sure that a rented facility is not used until the landlords honour their rent tax obligations.
Mr. Kpodo explained that the Income Tax Act, 2015 (Act 896) imposes an obligation on all income earners of a certain category to pay taxes on their earnings, including landlords or property owners.
Quoting the Income Tax Act, 2015, (Act 896), Mr. Kpodo said tax for residential premises is 8% while commercial and non-residential premises attract 15% rent tax.
The Rent Control officer also educated tenants to take Tenancy Agreement seriously to avoid disagreement between them and their landlords.
He also urged Landlords to ensure that the agreement is ready for the tenants within seven days, as provided by Section 20 of the Rent Act, of 1963 (Act 220), the primary legislation governing rental relationships between landlords and tenants in the country.
According to him, most of the misunderstanding and litigation between landlords and their tenants could be avoided if they took the rental agreement seriously at the initial stage of negotiations.
He said under the Rent Act, tenants have several rights, including the right to the peaceful occupation of the premises, the right to adjustment of rent only by the law, the right to notice of any intended eviction or termination of tenancy, and the right to redress before a court of law.
He noted that Section 17 (1) of the Rent Act provides that: “No order against a tenant for the recovery of the possession of or for the ejection from, any premises shall be made or given by the appropriate Rent Magistrate or any other Judge except for non-payment of rent and breach of obligation of the tenancy.”
Mr. Kpodo further explained that tenancy agreements in Ghana may last for six years, even though most tenants and landlords come to an agreement of three years, after which the tenant can decide to call for a renewal of the contract or move out.
He explained that if a tenant fails to pay rent, the landlord has the right to initiate eviction proceedings by which the tenant must be given a written notice of not less than one month to remedy the arrears before eviction.
He said a landlord may evict a tenant for a material breach of the lease agreement including actions such as subletting the property without permission or causing significant damage to the property and Nuisance or Illegal Activity within the rented premises or creating a nuisance that disturbs other tenants or the neighborhood.
Mr. Kpodo said the Rent Control Act outlines the conditions and circumstances under which a landlord may legally evict a tenant.
He said a landlord must obtain a court order to evict a tenant emphasizing that self-help evictions including changing locks, removing belongings, or forcibly removing the tenant are not allowed.
He therefore advised landlords and tenants to familiarise themselves with the Rent Control Act and seek assistance from the Rent Control Department in the event of disputes or issues related to eviction.
Meanwhile, the Rent Control department recorded a total of 2,618 rent cases in 2023 and 837 cases in the first quarter of 2024.
