Rent Payment Options And The Best Ways To Pay Rent in Ghana

Rent payments in Ghana are arguably the most important concerns for both tenants and homeowners and for this reason managing rental property in the country is stressful and demanding. 

However, about 37.5 percent of all households live in rented apartments in the nation's capital city, Accra, averaging yields of 8 percent and 11 percent annually (Global Property Guide). This tells you how much homeowners are making from rental properties in Ghana.

What is the payment of rent?

Rent payment refers to the amount of money a prospective tenant pays to a potential homeowner in exchange for the right to use a commercial space for a specified period of time. The agreed payments can either be in arrears or in advance, depending on the contract terms and conditions.

In Ghana, rents are not to be paid in advance for more than 6 months. However, the practice is quite the opposite since landlords demand commanding 2-years rent advance payments from tenants. You can choose the rent payment options by determining how much a rent cost in Ghana.

Rent Payment Options To Accept in Ghana

The most important thing is paying and getting paid. Because of this landlords will give tenants flexible options so that their choice of rent payments works for them.

Here are the best forms of rent payment to consider, including the rent payment options to accept and the methods of rent payments in Ghana you will likely want to avoid. 

Pay By Cash

Most people will advise you not to pay rent in cash since it is easy to lose it. But we always tell clients that the payment method depends on you and your landlord. Though it does not provide you with a good electronic record of your payment, you should always request a payment receipt whenever you make cash rent payments. 

Pay By MoMo

Mobile Money payments are increasingly becoming common among people because of the ease and convenience platform it provides for customers. MoMo, like any electronic transaction, is another secure form of rent payment based on its ability to keep records. However, while mobile money payments may be good for one-time payments, the transaction provides references where you can easily put in the tenant's name.

Pay By Cheque

Cheques are the traditional method of rent payments in Ghana. Though people don’t often use them anymore, we will say that cheques are another good way to pay rent as this provides you with a paper copy of the transaction made to the landlord. One major issue with cheque payment has to do with cheque bounces. If the check bounces, the rentee gets charged a bank fee. 

Pay By Direct Bank Deposit

Direct bank deposits are another secured form of rent payments that allows both the landlords and tenants the convenience of collecting and paying rent. Others believe direct bank deposits should not be encouraged because this involves you giving them your account number and other details and it has the tendency of causing future problems. 

The Form of Rent Payment To Avoid in Ghana

The best method for accepting rent payments in Ghana is by paper check, which can be initiated by a payment processing service that will send a paper check to the landlord on the due date. Nonetheless, accepting payments in certain other forms comes with problems and should be avoided. 

1. Avoid paying rent to Agents

The activities of a real estate agent in any transaction are limited and it does not include receiving rents on behalf of landlords. Remember that regardless of the payment option you choose, you’re still responsible for keeping proper records.

2. Avoid paying rent through unreliable online payment platforms 

Online payments in Ghana are still developing and some of the online payment systems do not have the security to rely on. Though it is quick, you will need some form of safety in dealing with such platforms. Always lookout for more proven and reliable online rent payment gateways that are more trustworthy. When you pay rent online, the funds usually are transferred immediately or within a day and it requires little effort. 

3. Avoid paying rent to third parties

Sometimes landlords are represented by third parties to collect rents from tenants in a tenancy agreement. But the reality is that some third parties are rogues and you should not pay rent in cash to third parties no matter the circumstances.