How security deposits work in Ghana
A security deposit protects the landlord if the tenant leaves damage, unpaid utility bills or missing items. Unlike advance rent, it is not used up month by month: it is held until the tenancy ends and then returned, minus the cost of anything the agreement allows the landlord to deduct.
What the law says. The Rent Act deals with advance rent, agents' commission and payments for being granted a tenancy, but it does not mention security deposits. There is no legal amount, no rule on where the money is held and no fixed deadline for returning it. That makes the tenancy agreement the main protection for both sides.
How it differs from advance rent. The Act caps how much rent a landlord may demand upfront; the cap is in the figures. A deposit is meant to be a separate, refundable sum. If a landlord calls a payment a deposit but treats it as rent, or keeps it whatever happens, ask Rent Control how it should be treated.
In practice. Deposits have become more common, including with homes let by real estate companies. Some rental listings on Ghana Property Centre ask for one on top of the advance. Commentators have reported landlords asking for large deposits, or a fresh deposit every year, and tenants who struggle to get their money back.
Getting it back. Agree at the start what the deposit covers, record the condition of the home with photos and an inventory, and arrange a joint inspection when you leave. If the landlord will not refund it or makes deductions you dispute, you can take the matter to Rent Control, which hears landlord and tenant complaints and refers unsettled cases to the courts.
Law reform. A new rent law is being drafted; see the proposed-law box. Its published outline does not mention deposits.
What to agree before you pay a deposit
- The amount of the deposit, written separately from the advance rent.
- What it covers: damage, utility bills, missing items, cleaning.
- What counts as normal wear and tear that cannot be deducted.
- When and how it will be returned, and how deductions will be shown.
- A signed inventory and dated photos of the home at move-in.
- A receipt for the deposit, paid by bank transfer or mobile money.
Red flags
- A "deposit" that the landlord says is not refundable.
- A demand for a new deposit each year on top of the deposit already held.
- No written agreement or no receipt for the deposit.
- A deposit paid in cash to an agent rather than to the landlord.
Typical cost or timeline
Legal cap on advance rent for a tenancy longer than six months (Rent Act s.25(5))
6 months' rent
As of October 2026
Republic of Ghana (via Centre for Affordable Housing Finance in Africa) Graphic Online Graphic Online
Proposed, not yet law
The government plans to repeal the Rent Act 1963 (Act 220) and PNDCL 138 and replace them with one consolidated Rent Act. The Minister for Works, Housing and Water Resources told Parliament in June 2026 that drafting was at an advanced stage and the bill would go to Cabinet. Published outlines of the draft cover advance rent, rent assessment and hostels; none mentions security deposits. Nothing in the draft is law.
Status: being drafted by the Ministry; not laid in Parliament as of 18 October 2026 (confirmed 18 October 2026).
Security deposit vs Advance rent
| Aspect | Security deposit | Advance rent |
|---|---|---|
| What it pays for | Damage or unpaid bills | Future months of rent |
| Returned at the end? | Yes, less any agreed deductions | No; it is used up as rent |
| Limited by the Rent Act? | Not mentioned in the Act | Yes, the advance a landlord may demand is capped |
| Where the terms come from | The tenancy agreement | The Rent Act and the tenancy agreement |
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Questions
Is a security deposit refundable in Ghana?
It is meant to be. A deposit is held against damage or unpaid bills and returned at the end, less agreed deductions. Put the refund terms in your tenancy agreement.
How much security deposit can a landlord charge in Ghana?
The Rent Act sets no amount for deposits, so it is agreed between you and the landlord. The legal cap on advance rent is separate and is in the figures.
Is a security deposit the same as rent advance?
No. Advance rent pays for months you will live there; a deposit is a refundable sum held against damage or unpaid bills.
My landlord refused to return my deposit. What can I do?
Gather your agreement, receipts and move-in photos, and file a complaint with the Rent Control office for the area. Unsettled cases can go to court.
Can I use my deposit as my last month's rent?
Only if your agreement or landlord allows it. Agree it in writing before you stop paying rent.
Related terms
Sources
- 1. Rent Act, 1963 (Act 220), as amended Republic of Ghana (via Centre for Affordable Housing Finance in Africa) · checked 18 October 2026
- 2. Understanding Ghana's Rent Act: Know your rights as a tenant 3News · checked 18 October 2026
- 3. The matter of 'security deposit' in renting a home in Ghana (feature) Ghana Business News · checked 18 October 2026
- 4. 14,586 rent cases settled last year Graphic Online · checked 18 October 2026
- 5. Report landlords demanding rent advance beyond 6 months – Rent Control Graphic Online · checked 18 October 2026
- 6. Gov't to replace outdated rent laws with new consolidated Rent Act Citi Newsroom · checked 18 October 2026
- 7. Rent dialogue convened to address emerging issues in revised bill Ministry of Works, Housing and Water Resources · checked 18 October 2026
Cite this definition
"Security deposit", Ghana Property Centre Property Glossary, last checked 19 October 2026, https://ghanapropertycentre.com/glossary/security-deposit
You may reuse this definition under CC BY 4.0 with credit to Ghana Property Centre and a link to this page.
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