The KNUST Hostel Owners Association has rejected attempts by Rent Control authorities to regulate private student hostels under the Rent Act, arguing that the facilities operate differently from conventional landlord-tenant arrangements.
The Association maintains that private hostels provide an important extension of university accommodation and should not be subjected to blanket rent-control measures without consultation with operators.
Speaking at a press conference, President of the Association, Bishop Dr Akwasi Owusu-Bi, questioned why private student hostels were being targeted when rental prices in some high-end residential areas remain significantly higher.
“If they want to control prices, in my own opinion, they should begin from East Legon, where prices are quoted in dollars and not in cedis,” he said.
Hostel owners cite high investment costs
Bishop Owusu-Bi said private hostel operators had invested substantial amounts of money to provide accommodation for students who cannot secure rooms on university campuses.
According to him, many operators financed their projects through bank loans obtained at high interest rates. He therefore warned that attempts to reduce hostel fees without taking construction, financing and maintenance costs into account could threaten the sustainability of the businesses.
The Association stressed that it is not opposed to regulation but wants authorities to recognise the existing arrangements governing private student hostels.
“We don’t say we don’t want to be controlled or regulated. We have a system that regulates our operation,” Bishop Owusu-Bi said.
He called for discussions between government and hostel operators to develop legislation specifically addressing private student accommodation.
Association challenges application of Rent Act
The Association’s legal counsel, Michael Gyan Owusu, argued that private student hostels could fall outside the scope of the Rent Act because accommodation is provided alongside additional services.
These services, he explained, can include cleaning, security, electricity and other forms of support, making the arrangement different from a conventional tenancy.
He also cited the relationship between KNUST and affiliated private hostels, noting that operators are required to comply with university rules and regulations.
“You can clearly see that this is not your regular landlord and tenant relationship and this is more of a boarding or a license granted to these students, primarily because they are students,” he said.
Mr Gyan Owusu further noted that the Ghana Tourism Authority licenses hostels as tourism premises, raising questions about the extent of the Rent Commissioner’s authority over such facilities.
He argued that even where the Rent Act applies, its provisions establish procedures for rent assessment and do not give the Rent Commissioner the authority to impose a blanket charge or assessment.
Economist calls for evidence on hostel fees
Property economist and researcher Dr Kenneth Donkor Hyieman also questioned claims that hostel operators are exploiting students.
He argued that determining whether a hostel fee is excessive requires an objective benchmark.
“To be able to identify a fee as exploitative, you need to come up with a comparator. You need to come up with some index,” he said.
Dr Hyieman acknowledged that hostel fees running into thousands of cedis can be burdensome for students and families, particularly those facing financial difficulties. However, he said the actual cost of providing and maintaining the accommodation must also be considered when assessing whether charges are excessive.
Government promises engagement
The government has said it will engage hostel owners and relevant institutions to address concerns over student accommodation costs.
Minister for Youth Development and Empowerment, George Opare Addo, said he would discuss the matter with the Ministry of Education and other institutions responsible for rent regulation.
“We will have the necessary conversations with owners of hostels, and we will make sure that prices are reasonable for the dear students of this country,” he said.
He also disclosed that the Ministry of Education was engaging private developers to construct additional affordable student hostels on university campuses.
Hostel owners warn of possible impact on universities
The KNUST Hostel Owners Association warned that a prolonged dispute over hostel fees could affect university operations, given the role private facilities play in accommodating students.
Bishop Owusu-Bi said operators could consider withdrawing their services because the hostels are privately owned.
“If we decide to close our hostels, how are the universities going to operate?” he asked.
He also noted that private hostels come in different categories and price ranges, while questioning why many students continue to choose more expensive facilities.
For now, the Association is calling for dialogue with government, a sector-specific regulatory framework and an end to what it describes as blanket attempts to control private hostel fees.
The government, meanwhile, says it will continue pursuing affordable student accommodation while ensuring that applicable laws are respected.
