The Rent Control Department has announced plans to regulate and determine the fees charged by private hostels serving tertiary institutions across Ghana, a move that is expected to significantly impact accommodation costs for students ahead of the next academic year. Acting Rent Commissioner Frederick Opoku says the department is already processing about 100 applications from private hostel operators and will begin assessments aimed at establishing appropriate rental charges under existing rent laws.
Speaking in an interview on Joy FM on Wednesday, August 19, 2026, Mr Opoku stated that the Rent Control Department had the legal authority to assess private hostel facilities and determine what operators could charge students. He dismissed claims by some hostel owners that the department lacked the mandate to regulate hostel fees in the absence of a specific framework.
According to him, the exercise is being carried out under the Rent Act, 1963 (Act 220), which grants the Rent Control Department authority over most rental premises in the country, excluding government-owned properties. “As we speak today, let me announce to you that I received 100 applications and they are all going to be assessed within the next three months, two months before school reopening,” Mr Opoku said during the interview.
“We are going to set how much they will charge in this country,” he added.
The announcement comes amid growing concerns among students and parents over the rising cost of accommodation around universities and other tertiary institutions. In recent years, hostel fees have increased significantly in several parts of the country, with many students struggling to secure affordable accommodation close to their campuses. Mr Opoku maintained that private hostel operators remain subject to the country’s rent laws regardless of the investments they have made in constructing and maintaining their facilities.
“Private hostels are not outside the law simply because they are investors,” he stressed.
He explained that Section 10 of the Rent Act empowers rent officers to determine the rent payable for premises and indicated that the department would rely on that legal provision in conducting the assessments. The Acting Rent Commissioner also issued a warning to hostel operators who had not yet submitted their facilities for assessment. According to him, operators who fail to cooperate with the exercise could face consequences for operating outside the requirements of the law.
“Those who have not applied are running away from the law,” he said.
The comments, however, have drawn resistance from some members of the hostel industry, who argue that while they are not opposed to regulation, the process must take into account the economic realities facing private investors. Chairman of the Hostel Owners Association, Bishop Dr Akwasi Owusu-Bi, said operators welcomed the assessment of their facilities but disagreed with the manner in which the Rent Control Department intended to determine hostel charges.
He argued that hostel fees have been driven upward largely by rising construction costs, operational expenses and statutory obligations imposed by state institutions. According to him, hostel owners are required to pay fees and comply with regulations from several agencies, including the Ghana Revenue Authority (GRA), the Environmental Protection Agency (EPA), the Ghana Tourism Authority (GTA) and the Ghana National Fire Service (GNFS).
Bishop Owusu-Bi further noted that current hostel charges were not arbitrarily determined. He explained that concerns about accommodation costs during the previous New Patriotic Party (NPP) administration led to consultations involving universities, hostel operators and other stakeholders. The discussions, he said, resulted in a committee that established what was considered reasonable pricing for student accommodation.
He also highlighted the financial pressures facing hostel developers, many of whom rely on personal savings and short-term bank loans to construct their facilities. According to him, some of these loans must be repaid within one to three years, creating significant financial burdens for operators. As a result, he said, some hostel owners are considering increasing fees because they are operating at a loss. He further disclosed that a number of hostel properties had already been taken over or sold by banks after owners failed to meet their loan repayment obligations.
The debate between the two sides also extended to efforts to organize a meeting in Kumasi to discuss the proposed regulatory measures. Bishop Owusu-Bi claimed he had invited the Acting Rent Commissioner to Kumasi for consultations but alleged that Mr Opoku requested that the association cover his travel expenses before attending the meeting.
According to him, the discussion ended without a resolution after the commissioner declined the invitation. Mr Opoku confirmed that he had refused to travel without an approved budget but rejected suggestions that his decision was inappropriate. He argued that as a public official, he could not use state resources to attend a meeting organized by a private association without proper authorization and funding.
“If you don’t have a budget, you can’t force me to come,” he said.
The Acting Rent Commissioner instead suggested that hostel operators travel to Accra if they wished to engage with the department. Another point of disagreement centered on whether private hostel operators should be considered providers of a public service because they accommodate students who might otherwise struggle to find housing. Mr Opoku disagreed with that characterization and used the opportunity to raise concerns about compliance levels within the industry.
He claimed that many hostels were operating outside legal requirements and alleged that a significant number were not paying taxes. He further suggested that some facilities could face scrutiny as the department intensifies enforcement efforts.
Questions have also emerged regarding the potential impact on students should some hostels be sanctioned or closed following the assessments. Responding to those concerns, Mr Opoku said he would advise government to explore alternative accommodation arrangements if enforcement actions result in student displacement.
The planned assessment exercise is expected to become a major issue within Ghana’s tertiary education sector in the coming months as authorities seek to balance investor interests with the need to ensure affordable accommodation for students across the country.
Philbert Amiba Ayuusah