Steps To Becoming A Landlord In Ghana: A Comprehensive Guide

Do you want to know how to become a landlord in Ghana? Is this the key to your future? There is always talk about building wealth and leaving something for family but buying a rental property in Ghana seemed like a giant leap. The question then becomes; How do you get started? How much money do you need? How much time will it take?

The scariest part is just taking the first step. Some people who want to become landlords fail to start simply because they are overwhelmed and never take that first step. This article teaches you how to become a landlord in Ghana. 

How To Become A Landlord In Ghana: The Key Steps

To become a landlord in Ghana, you don’t need to be an experienced realtor or investor. However, being a landlord requires time and knowledge, and if it is something you are considering getting into, the following steps are for you.

1. View Rental Property as a Business

Patience is always part of the deal when becoming a landlord in Ghana. Again, building wealth through home rentals isn't a get-rich-quick scheme. Even with a property manager handling the day-to-day stuff, there would still be time demands. This isn't just about collecting rent checks; it is about running a business, and like any business, it would require your attention. The most important thing to remember is that being a landlord is a business and must always be treated as such. This should be an investment in your future, and like any worthwhile endeavor, it will take work. But with the right mindset, you will make it work.

2. Understand Landlord Responsibilities

You have finally decided to buy a rental property in Accra, but with this excitement, your decision is tinged with uncertainty. Becoming a landlord in Ghana sounds elementary enough, but what exactly does it entail? What are your responsibilities as a landlord? You should remember that you will always be responsible for yourself and your tenants. Ghana has laws protecting tenant rights. So, finding that balance—protecting yourself while ensuring your tenants are happy—seemed like a tightrope walk. You also have your business responsibilities. This means keeping track of all your expenses and revenue. 

3. Buy an Investment Property 

Buying an investment property is vastly different from purchasing a primary home. Unlike your hunt for a home, where curb appeal and a perfect layout rule supreme, this decision is purely business. An investment property isn't about your desires, but what the renters desire. You are buying based on the demand in the rental market and not on personal preferences. Turning a profit, not personal preference, is the key to the success of the landlording business here. 

4. Budget for Unexpected Costs

As a landlord in Ghana, you should know that unexpected costs are a landlord's reality, so all potential landlords in Ghana should aim for a healthy cash reserve before acquiring a rental property in Accra. The last thing you want is to scramble for funds with a vacant apartment. You may learn something about the rental property after it is purchased that needs repairs before it can be habitable. If you don’t have enough cash reserves for the repair, you may need to take out expensive short-term loans or, even worse, sell the property at a loss. For the long term, you should save up a sizable cash reserve for unforeseen costs beyond your annual budget.

5. Understand Landlord-Tenant Laws

Landlord-tenant laws in Ghana are indeed highly complicated. This is because there isn’t a single national document regarding housing laws and tenant rights in Ghana. The Constitution of Ghana, the Rent Act of 1963, and the Rent Control Department set strict legal guidelines around discrimination issues to elaborate on how rent prices and eviction should be handled. The country has strict laws that protect tenants from landlords making drastic rent increases to force them out. Landlords in Ghana can’t just evict tenants because they don’t like them or hold some grudge against them. 

6. Prepare Your Property for Move-In 

You've become a landlord after successfully purchasing a rental property in Ghana. But before you can celebrate the soon-to-be-occupied rental property, of course, there's a crucial step: transforming this space into a rental income. Sure, it might be technically habitable, but that doesn't exactly scream "dream apartment" to potential renters. We're talking about creating a move-in-ready masterpiece—a place so inviting they'll be racing to sign the lease before you can blink. 

7. Determine How Much Rent to Charge

Before purchasing a rental property in Ghana, you’ll need to know what you can charge. There is a difference between what you need to charge to make a profit and what you can charge for a rental property. It’s not only the number of rooms and bathrooms or square footage that will determine how much you can charge. It will depend on the neighborhood and the quality of the rental property as well.

8. Draft the Rental Agreement

It is now time to create a comprehensive rental agreement that outlines the terms and conditions of the tenancy, including rent, security deposit, and responsibilities of both parties. A potential landlord should ensure the rental agreement complies with Ghanaian tenancy laws and regulations.

9. Screening Prospective Tenants

Conduct background checks on potential tenants to assess their credit history, rental history, and references. Choose reliable tenants who align with your expectations and rental criteria. The last thing you want is to create a tenant screening process that rules out qualified tenants in Accra. This happens if you require too much income or a large security deposit.

10. Rent Collection and Management 

Set up a system for rent collection, such as direct deposits, online payments, or in-person payments. Provide prompt maintenance and repair services to address tenant concerns and maintain the property's condition. You can consider hiring a property manager to handle day-to-day management tasks, such as rent collection, tenant relations, and maintenance. If you choose to self-manage, be prepared to handle all aspects of property management yourself.

Conclusion 

Becoming a successful landlord in Ghana requires dedication, attention to detail, and compliance with legal requirements. Following this comprehensive guide, aspiring landlords can navigate the process effectively and establish a sustainable rental business in Ghana.