Property Management Agreement (Ghana)

A Property Management Agreement in Ghana sets out the rights, duties and consideration binding the parties to it.

The Real Estate Agency Act 2020 (Act 1047) established the Real Estate Agency Board (REAB) as the regulatory body for real estate agents and property managers in Ghana. Section 14 of Act 1047 requires every person or company carrying on the business of real estate management in Ghana to hold a valid licence issued by the REAB. A Property Management Agreement executed with an unlicensed property manager contravenes Act 1047 and may be unenforceable. Property owners should verify the REAB licence number of any proposed property manager before signing a Property Management Agreement.

The Rent Act 1963 (Act 220) is the primary legislation governing residential tenancies in Ghana and applies to any residential property let at a controlled rent. Section 25 of Act 220 confers authority on an owner to appoint an agent to manage rented property and to collect rent on the owner's behalf. The Rent Control Department, under the Ministry of Works and Housing, administers Act 220 and the Rent Control Tribunal adjudicates disputes between landlords, tenants, and their agents.

The Land Act 2020 (Act 1036) governs the ownership and transfer of interests in land in Ghana. Where the property managed under a Property Management Agreement is leasehold land, the agreement must be consistent with the terms of the head lease and must not infringe any restrictions on assignment or subletting contained in the head lease. The Land Title Registration Authority (LTRA) registers instruments affecting land under Act 1036.

The Contract Act 1960 (Act 25) applies to Property Management Agreements in Ghana. The property manager acts as agent of the property owner under the general law of agency, which in Ghana draws on both Act 25 and common law principles of agency inherited from English law. The property manager must act within the scope of the authority granted by the Property Management Agreement and must account to the owner for all money collected on the owner's behalf.

The Ghana Revenue Authority (GRA) administers income tax on rental income under the Income Tax Act 2015 (Act 896). Where a property management company collects rent on behalf of an owner, the company is required to deduct withholding tax from the rental payments and remit it to the GRA under Act 896. The property manager must provide the owner with an accurate account of all rental income received and all deductions made, to enable the owner to comply with tax obligations.

The Labour Act 2003 (Act 651) governs any employment relationship between the property management company and its staff. The High Court in Accra, the Circuit Court, and the Rent Control Tribunal all have jurisdiction to adjudicate disputes arising from Property Management Agreements in Ghana under the Courts Act 1993 (Act 459).

A Property Management Agreement in Ghana is needed whenever a property owner wishes to delegate the day-to-day management of a rental property to a professional property manager rather than managing the property directly.

A Property Management Agreement is required when a property owner based outside Ghana — whether a non-resident Ghanaian citizen or a foreign national holding a leasehold interest under Section 17 of the Land Act 2020 (Act 1036) — needs a licensed property manager in Ghana to collect rent, maintain the property, and deal with tenants on their behalf.

A Property Management Agreement is needed when a property owner in Accra, Kumasi, or any other part of Ghana owns multiple residential or commercial properties and wishes to engage a property management company registered with the Real Estate Agency Board (REAB) under the Real Estate Agency Act 2020 (Act 1047) to manage the portfolio professionally.

A Property Management Agreement is required when a corporate body incorporated under the Companies Act 2019 (Act 992) invests in real property in Ghana and needs a professional manager to handle rent collection, tenant relations, maintenance, and compliance with the Rent Act 1963 (Act 220).

A Property Management Agreement is needed when a property owner has had difficulties collecting rent from tenants and wishes to engage a property manager with experience in dealing with rent arrears under the Rent Control procedures established under Act 220 and enforced by the Rent Control Tribunal.

A Property Management Agreement is required when a landlord provides furnished accommodation and needs a property manager to conduct move-in and move-out Property Inventory Checklists, manage security deposits, and coordinate repairs and maintenance with contractors.

A Property Management Agreement is needed when a property forms part of an estate administered by an executor or administrator under the Administration of Estates Act 1961 (Act 63), and the executor requires a licensed property manager to maintain and let the estate property pending distribution to beneficiaries.

Property owners should confirm the property manager is licensed by the REAB under Act 1047, carries professional indemnity insurance, and maintains a separate client account for rental proceeds in accordance with the requirements of Act 1047.

A binding Property Management Agreement in Ghana under Section 25 of the Rent Act 1963 (Act 220) and the Real Estate Agency Act 2020 (Act 1047) must contain the following essential elements.

Parties: Full legal names, addresses, and contact details of the property owner (principal) and the property manager (agent). Where the property manager is a company incorporated under the Companies Act 2019 (Act 992), the company registration number from the Office of the Registrar of Companies (ORC) and the REAB licence number issued under the Real Estate Agency Act 2020 (Act 1047) must be stated.

Property Description: A precise description of the property or properties to be managed, including the address, plot number, title information from the Lands Commission of Ghana or the Land Title Registration Authority (LTRA), and the nature of the property (residential, commercial, or mixed use).

Scope of Management Services: A detailed description of the services the property manager will provide, including: marketing and letting of vacant units; tenant selection and reference checking; preparation and execution of tenancy agreements under the Rent Act 1963 (Act 220); rent collection and remittance to the owner; Property Inventory Checklists at tenant move-in and move-out; routine maintenance and repairs below a specified cost threshold; emergency repairs; payment of rates, utility charges, and service charges from rental proceeds; and periodic property inspections.

Management Fee: The management fee payable to the property manager, expressed as a percentage of gross rental income collected (typically 8% to 15% in Ghana) or as a fixed monthly fee; the timing of payment; and the property manager's right to deduct the fee from rental proceeds before remitting the balance to the owner.

Rent Collection and Accounting: The property manager's obligation to collect rent, maintain accurate records of all income received and expenditures made, and provide the owner with monthly or quarterly financial statements. The property manager must maintain a separate client account for rental proceeds as required by the Real Estate Agency Act 2020 (Act 1047) and must remit the owner's share within the period specified in the agreement.

Withholding Tax: The property manager's obligation to deduct and remit withholding tax on rental income to the Ghana Revenue Authority (GRA) under the Income Tax Act 2015 (Act 896), and to provide the owner with documentation of all tax payments made.

Maintenance and Repairs: The authority of the property manager to authorise and procure routine maintenance and repairs up to a specified cost limit without prior approval from the owner; the requirement to obtain the owner's prior written approval for expenditures above that limit; and the obligation to obtain at least three competitive quotations for major works.

Termination: The notice period required to terminate the Property Management Agreement — typically 30 to 90 days — and the obligations of the property manager upon termination, including the handover of keys, tenancy files, accounts, and all money held in the client account.

Forms-legal.com provides this Property Management Agreement template as a starting point for property owners and managers in Ghana. Parties are advised to seek independent legal advice from a solicitor enrolled with the Ghana Bar Association and to verify the REAB licence status of the property manager before signing.

Dispute Resolution: Ghana law as the governing law, with disputes referred to the High Court in Accra, the Rent Control Tribunal under Act 220, or arbitration under the Alternative Dispute Resolution Act 2010 (Act 798) administered by the Ghana Arbitration Centre.