‘Kalabule’ Landlord Increases Rent From GH₵1500 to GH₵10, 000

A landlord in Kumasi in the Ashanti Region, has reportedly taken advantage of the current economic situation in the country, to astronomically increase rent from GH₵1500 to GH₵10, 000, per month for a relatively small office space.

The tenant, a young man, who could not afford the exorbitant increment, has taken the issue to the public, sparking a significant discussion.

According to the tenant identified as Isaac Sesi, a businessman and founder of Sesi Technologies, the outrageous increment, came without reduction, despite several pleas to the landlord.

Sesi, who share his ordeal in a Facebook post, amidst frustration, said the landlord, had claimed the country is hard, hence the reason for the drastic hike.

“Our office rent was GHC1500/month. Rent is due. Landlord says Ghana, is hard, so rent has increased to GHC10k/month. Take it or leave!” he wrote.

According to Sesi, they cannot raise such amount per month, because he and his team are only surviving, stressing “We don’t even have a car”.

He, however, fell short of giving out the name of the said landlord, the specification of the office space and the exact location of the property.

The post, which generated comments and shock on the internet, appears to be the new norm for most landlords in recent days.

It highlights the serious issue many small business owners, as well as vulnerable tenants are facing in Ghana, due to the rising cost of office space and accommodation.

He said, all efforts to get the property owner to reduce the cost, has fallen on deaf ears.

Sesi, said having analysed the action of his landlord, he came to the conclusion, saying “I think it’s just a tactic to kick us out”.

Explaining the issue further, he said they had tried to get the landlady to reason with them, so they meet her half way, but she refused.

“We offered to arrive at a reasonable increase Madam said no way”, he said.

Often, property owners use prevailing economic indicators to price their properties. In recent years, they have used the continuous increase in building materials such as cement, and depreciation of the local currency to price these properties.

Some even go to the extent of charging in US dollars.

Recall that recently, this informed a decision by the Minister for Trade and Industry KT Hammond, to introduce a new Legislative Instrument (LI) that will look into prices of cement.

The legislative instrument seeks to regulate the prices of cement in the country amid increasing concerns over escalating cement prices, which have risen to an average of GH¢105 per bag.

The document initially faced rejection from Members of Parliament (MPs), and cement producers who went on collision course with the minister, citing lack of consultation.

After the back and forth, cool heads appear to have prevailed and the Minister has finally presented the Ghana Standards Authority (Pricing of Cement) Regulations 2024 after passing the pre-laying process waiting for 21 days to mature before it becomes a law.

Mr Hammond, earlier explained that the new legislation would help the country to combat arbitrariness in the pricing of cement.

The Minister, highlighted the need for the regulation, asserting that a moral persuasion to cement manufacturers to stop arbitrary price increases and publish their retail prices failed.

“You would also realize that for a long time, you never see cement prices de-escalating. It’s always escalating. It’s always going up through the ceiling, through the roof, and towards the skies.

“Somehow, something has to be done about this. At a point in time. We were not producing so much cement in the country. Now we have an installed capacity of over 11 million tons in the country.

“Our demand is nothing like 11 million, so it might be a very profitable enterprise. But I think it behooves those in responsible positions, in authority, to ensure that the good people of Ghana are not fleeced. I am not comfortable,” he stated.

Source: Anchorghana.com