So, you’ve finally found a tenant and everything matches. Good job, steady income, polite, and even showed up on time. Then comes the awkward part: the security deposit conversation.
If you’re a landlord trying to protect your property or a tenant trying not to get cheated by landlords, the rules around security deposits in Ghana can be a bit blurry. But we are here to help.
This blog post breaks down the biggest dos and don’ts of handling security deposits the right way, so no one feels taken advantage of.
Let’s get started!
What Is a Security Deposit?
A security deposit is a sum of money a tenant pays to a landlord before moving into a rental property. Its purpose is to protect the landlord in case of damages, unpaid bills, or breach of the tenancy agreement.
Think of it as money set aside to cover unexpected losses should things go wrong.
How Is It Different from Rent Advance?
Many people confuse a security deposit with a rent advance, but they serve different purposes:
- A rent advance is a prepayment for future rent. For example, paying 6 months upfront to cover future occupancy.
A security deposit is not meant to be used as rent. It’s refundable, assuming there’s no damage or unpaid bills when the tenant moves out.
In Ghana, it’s common to pay both at the start of a tenancy. A tenant can pay 6 months’ rent plus one month’s security deposit, but legally, these two payments must be treated separately.
What Landlords Should Do
When it comes to handling security deposits in Ghana, doing things the right way protects both you and your tenant and avoids unnecessary disputes. Here are a few key best practices every landlord should follow:
- Clearly State the Amount and Terms in the Rental Agreement
Always include the exact amount of the security deposit in your written tenancy agreement, along with what it covers. Specify whether it can be used for repairs, unpaid rent, utility bills, or breach of contract. This removes confusion and establishes a fair tenancy from the start.
- Provide a Receipt and Proof of Payment
Once the tenant pays the deposit, issue a receipt. This could be a signed paper document or a digital record (email, WhatsApp message, bank slip). It confirms that you’ve received the money and protects you both in case questions come up later.
- Conduct a Move-In Inspection with the Tenant
Before the tenant moves in, it is crucial to have a joint inspection of the property. Walk through the space, take photos, and take note of any existing issues such as cracks, leaks, or broken fixtures. Have the tenant approve on the condition. This ensures that when it’s time to move out, both parties have a point of reference.
What Landlords Shouldn’t Do
Even with good intentions, it’s easy for landlords to make mistakes when handling security deposits. Unfortunately, those mistakes can lead to tenant disputes, complaints, or legal trouble.
Here are some common don’ts for landlords:
- Charging Excessive Deposit Amounts
While there’s no official cap in Ghana’s Rent Act, it’s generally unfair and unprofessional to ask for more than one month’s rent as a security deposit, especially if you’re also collecting multiple two-year rent advances. Overcharging can lead to mistrust and scare off good tenants.
- Withholding the Deposit Unfairly After Tenancy Ends
Some landlords hold onto deposits for no clear reason or delay repayment long after the tenant moves out.
This not only damages your reputation but can get you reported to Rent Control, who may order you to pay it back. You can only keep part (or all) of the deposit if there’s documented proof of damage or unpaid obligations.
- Failing to Document Damages with Photos or Reports
If something breaks during the tenancy, you’ll need more than just your word to justify deductions.
Without photo evidence or a signed inspection report, tenants may dispute any claims, and Rent Control is likely to side with them.
A simple before-and-after photo comparison can save you time and stress.
- Mixing the Deposit with Rent or Using It Mid-Tenancy
Some landlords use the deposit toward missed rent payments, but unless both parties agree in writing, this isn’t best practice. Security deposits are meant for end-of-tenancy issues, not rent collection. Using it early can leave you with nothing to fall back on if damage occurs later.
Rights of Tenants Regarding Security Deposits
Just as landlords have the right to protect their properties, tenants in Ghana also have the right to fair and transparent treatment with their security deposit. They include:
The Right to Know How the Deposit Will Be Used
Tenants have the right to be informed, in writing, about what the security deposit covers. This should be clearly outlined in the tenancy agreement. Typical uses include damage repair, unpaid utility bills, or breach of contract.
The Right to a Refund at the End of the Tenancy
If there are no damages or unpaid bills, the tenant is entitled to a full refund of the deposit at the end of their tenancy.
Ideally, the refund should be processed within a reasonable time, typically 7 to 14 days after moving out. Clear communication and move-out inspections help speed up this process.
What to Do If a Landlord Refuses to Return the Deposit
If a tenant believes their deposit is being withheld unfairly, they can file a formal complaint with the Rent Control Department.
Rent Control can review the tenancy agreement, inspect the property, and mediate the issue. If the landlord has no valid reason or proof to justify keeping the money, they may be ordered to refund it, sometimes with a penalty.
What Happens in Case of Disputes?
Disagreements over security deposits are one of the most common rental issues in Ghana. It often revolves around miscommunication or a lack of documentation. When landlords and tenants can’t agree on who’s right, there’s a legal way to resolve things without going to court: The Rent Control.
The Rent Control Department of Ghana exists to mediate rental disputes, including those involving security deposits. If a tenant claims their deposit was unfairly withheld, or a landlord wants to justify deductions, Rent Control can step in to review both sides and offer a fair resolution.
In Conclusion:
Security deposits don’t have to be a source of conflict between a landlord and a tenant. When handled correctly, they protect both landlords and tenants and build trust from the start.
As a landlord, being clear about the amount, documenting everything, and refunding deposits fairly shows professionalism and encourages better tenant behavior.
As a tenant, understanding your rights and keeping records ensures you don’t get taken advantage of.
At Prime Listings Ghana, we believe in building a better rental experience, one where landlords feel secure and tenants feel respected. So, whether you’re listing your first apartment or managing multiple properties, we’re here to help you rent smarter, fairly, and without stress.
Ready to list your rental with confidence?
Visit www.primelistingsgh.com or DM us @primelistingsgh to get started today.
FAQs
How much security deposit can a landlord charge in Ghana?
There’s no strict legal limit set by the Rent Act, but it’s generally considered fair to charge one month’s rent as a security deposit. Charging more can cause challenges for tenants, especially if you’re already collecting several months of rent in advance.
Can the landlord use the deposit for rent if the tenant is behind on payments?
Not automatically. Unless both parties agree in writing, the security deposit is not meant to be used as rent during the tenancy. It should be held until the end of the lease to cover damages or outstanding bills, not regular rent payments.
How long does a landlord have to return a security deposit after a tenant moves out?
There’s no fixed timeframe in Ghanaian law; however, 7 to 14 days after move-out is a reasonable standard. If there are no damages or unpaid bills, the full amount should be refunded quickly.
