Advance rent mobilisation strategies of graduate renters in Ghana: a submarket of the private rental housing market

The practice of advance rent, where landlords ask renters to pay a lump-sum rent covering 2 or more years, is gaining scholarly and political attention in Africa. Nevertheless, there is limited empirical research investigating how renters mobilize funds to meet this financial commitment. Existing literature suggests that renters, irrespective of their educational level, face difficulties in paying advance rent, hence compelling them to rely mainly on their bonding (family and friends) and bridging (employers and financial institutions) social capital to pay advance rent. Drawing on rational choice and social capital theories coupled with data from a novel (graduate) sub-market of Ghana’s rental housing market, this article finds that personal savings remain the most rational current and future source of funding options graduate renters draw upon to pay advance rent, albeit some still drawing on their social capital. The findings demonstrate that graduate renters do not use bonding social capital in their future mobilization strategies after they have drawn on the same in previous years, although they continue to rely on their bridging social capital and other strategies to mobilize funds for advance rent. The study suggests the need to rethink rational choice and social capital theories to incorporate inter-temporal dynamics among different social groups and to traverse the current binary conception of the rental housing market in Ghana to consider different sub-markets and how they respond to existing challenges in the housing sector.