Considerations for Landlords Before Renting Property in Ghana
Mr. Emmanuel Horvey Kporsu, PRO Rent Control Department has reiterated that any property owner who wants to venture into the property rental business must first equip him or herself with the laws of the country governing the sector.
Speaking on National Television, Mr. Kporsu indicated that no landlord or property owner can rent out their facilities without due process. He added that you cannot just wake up one day and rent out portions of your facilities because of financial constraints or economic hardship without following the laid down procedures that regulate the rental business.
Also, when a property is rented out, an amount of money is paid as property tax. Property tax or property rates are monies paid on properties owned by an individual. This tax is collected and administered by the Metropolitan, Municipal, and District Assembly through the Ghana Revenue Authority.
The tax is calculated yearly on the estimated value of the property depending on the classification of the area the property is located.
He further added that, whether you rent out your property or dwell in them personally it is mandatory to pay property tax or rate, and this tax is paid exactly when you receive the rent advance.
He hinted that an 8% rate is charged on domestic or residential properties whereas a 15% is charged on non-residential facilities. This is paid to the Ghana Revenue Authority.
Source: Reuben Affum-Ankamah (Real Estate Times Africa)