The KNUST Hostel Owners Association has rejected moves by Rent Control officials to regulate their operations, arguing that such facilities operate differently from conventional landlord-tenant arrangements.
The Association says private hostel operators provide a critical extension of university accommodation and should not be subjected to blanket rent-control measures without proper consultation.
Speaking at a press conference, President of the Association, Bishop Dr Akwasi Owusu-Bi, questioned why private student hostels are 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 argued that private hostel owners have invested heavily to provide accommodation for students who cannot be accommodated on campus.
According to him, the businesses were established with significant financial commitments, including bank loans secured at high interest rates.
He therefore believes reducing hostel fees without considering the cost of construction, financing and maintenance could threaten the sustainability of the facilities.
The Association insists it is not opposed to regulation but wants government to recognise the existing system 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.”
He called for government to engage hostel owners and develop specific legislation for the sector.
Legal counsel for the Association, Michael Gyan Owusu, argued that private student hostels may fall outside the scope of the Rent Act because accommodation is provided alongside other services.
He said these include cleaning, security, electricity and other forms of support, making the arrangement different from a traditional tenancy.
He also pointed to the relationship between KNUST and affiliated private hostels, where 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.”
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 give the Rent Commissioner the power to impose a blanket charge or assessment.
Property economist and researcher, Dr Kenneth Donkor Hyieman also criticised what he described as claims of exploitation without sufficient evidence.
He said determining whether a hostel fee is excessive requires a 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.”
He acknowledged that hostel fees running into thousands of cedis could appear expensive, particularly to students and families facing financial difficulties, but said the actual cost of providing the accommodation must also be considered.
The government, however, 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 fees could have consequences for university operations.
Bishop Owusu-Bi said private hostel owners could withdraw their services because the properties are privately owned.
“If we decide to close our hostels, how are the universities going to operate?”
He added that, hostels come in different categories and price ranges, yet surprisingly, many students continue to opt for the more expensive facilities.
For now, the hostel owners are demanding dialogue, a sector-specific regulatory framework and an end to what they describe as blanket attempts to control hostel fees.
The government, meanwhile, says it will pursue affordable accommodation while ensuring that existing laws are respected.
By Kwaku Acheampong
