The KNUST Hostel Owners Association has rejected moves by Rent Control officials to regulate private student hostels, arguing that such facilities operate differently from conventional landlord-tenant arrangements.
The Association says private hostels provide an important extension of university accommodation and should not be subjected to blanket rent-control measures without proper consultation with operators.
Speaking at a press conference, the Association’s President, Bishop Dr Akwasi Owusu-Bi, questioned why private student hostels were being targeted when rental prices in some parts of the country, particularly 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 private hostel operators had invested heavily in providing accommodation for students who could not secure places on university campuses.
According to him, many operators financed their facilities through bank loans obtained at high interest rates, while also incurring significant costs for construction, maintenance, security, electricity and cleaning.
He therefore cautioned that reducing hostel fees without considering the cost of providing and maintaining the facilities could threaten the sustainability of the businesses.
The Association also argued that private student hostels provide additional services and operate under arrangements that differ from traditional tenancy agreements.
Bishop Owusu-Bi said the relationship between KNUST and affiliated private hostels requires operators 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 licence granted to these students, primarily because they are students.”
Mr Gyan Owusu further argued that the Ghana Tourism Authority already licenses hostels as tourism premises, raising questions about the extent of the Rent Commissioner’s authority over such facilities.
He maintained that even where the Rent Act applies, the law provides procedures for rent assessment and does not empower the Rent Commissioner to impose a blanket charge or assessment.
Calls for Evidence on Hostel Fees
Property economist and researcher, Dr Kenneth Donkor Hyieman, also criticised claims of exploitation that are not supported by sufficient evidence.
He said determining whether a hostel fee is excessive requires an objective benchmark or comparator.
“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.”
Dr Hyieman acknowledged that hostel fees running into thousands of cedis could appear expensive, particularly for students and families facing financial difficulties. However, he said the actual cost of providing accommodation must also be taken into consideration.
Government Promises Engagement
The government, meanwhile, says it will engage hostel owners and relevant authorities to ensure students are not subjected to unreasonable accommodation costs.
Minister for Youth Development and Empowerment, George Opare Addo, said he would take up 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 also disclosed that the Ministry of Education is engaging private developers to construct more affordable student hostels on university campuses.
The KNUST Hostel Owners Association has warned that a prolonged dispute over hostel fees could affect university operations.
Bishop Owusu-Bi said private hostel owners could withdraw their services because the facilities are privately owned.“If we decide to close our hostels, how are the universities going to operate?”
He added that hostels are available in different categories and price ranges, yet many students continue to choose more expensive facilities.
The hostel owners are calling for dialogue, a sector-specific regulatory framework and an end to blanket attempts to control hostel fees.
The government, meanwhile, says it will continue to pursue affordable student accommodation while ensuring that existing laws are respected.
Source: 3news
