The Rent Increase Laws Landlords Get Wrong

The Mistakes Landlords Make

Mistake 1: Increasing rent in year one of the lease. Act 220 doesn’t allow it. You serve notice and the tenant disputes it. The magistrate rules the increase is illegal.

Mistake 2: Increasing more than the law allows. You increase by 50% when Act 220 limits you to a smaller amount. The tenant objects and the magistrate reduces the increase.

Mistake 3: Not giving proper notice. You tell the tenant verbally that rent is increasing. They claim they were never properly notified. The increase is voided.

Mistake 4: Increasing at the wrong time in the lease cycle. Your lease says renewal is in December but you serve notice in October for a January increase. The timing is wrong and the increase fails.

Mistake 5: No justification. You want to increase rent but can’t explain why the new amount is reasonable. The magistrate asks: “Why should this tenant pay more?” You have no answer.

Any of these mistakes can get your increase challenged and rejected.

What the Law Actually Says

Under Act 220 and L.I. 369:

Timing Rules:

You cannot increase in the first year of tenancy
Increase must be served before the lease renewal period
Notice period is typically 3 months (check your specific circumstances)
Increase takes effect on the agreed renewal date

Amount Rules:

Increase must be “reasonable” and justifiable
Must be proportional to property condition, location, and market
Cannot be arbitrary or punitive

Procedure Rules:

Must be in writing
Must be clearly served on the tenant
Must give adequate notice period
Must explain the reason for the increase
Must be reasonable or magistrate can reject it

What Makes an Increase Defensible:

Clear timing within lease cycle
Written notice with adequate notice period
Market evidence supporting the new amount
Connection to improvements or market changes
Compliance with all notice requirements

Common Scenarios That Go Wrong

Scenario 1: Your lease is year-to-year. You’re at the 6-month point and want to increase rent. You serve notice but it’s too late—you didn’t give 3 months notice before renewal. The increase is delayed.

Scenario 2: You’ve improved the property and want to increase rent substantially. You serve notice but have no evidence (comparable properties, improvements documentation) to justify the new amount. The magistrate reduces it.

Scenario 3: You and the tenant never agreed on a renewal date. You serve “increase notice” but the timing is ambiguous. Is it for next month? Next year? The magistrate invalidates it.

Scenario 4: You write a notice saying “Rent is now GHS 1,500” but don’t explain why or when. It’s not a valid notice under Act 220.

How to Increase Rent Correctly

Check your timing: When can you legally increase? (After year one, before renewal period)
Understand your amounts: How much can you increase? (Based on market and law)
Gather evidence: Market comps, property improvements, condition documentation
Draft proper notice: Written, clear, dated, with sufficient notice period
Serve correctly: Proof that tenant received and understood it
Document the decision: Keep records of when and why you increased

Without each of these steps, your increase can be challenged.

The Solution: Professional Guidance

Before you increase rent, get guidance on:

Whether you can legally increase right now
How much you’re allowed to increase
What notice to give and when
How to justify the increase
How to word your notice

For GHS 250, you get clarity and avoid disputes.

When You Need This

You’re approaching renewal and considering an increase
You want to increase rent and need market justification
A tenant has already rejected your increase
You’re unsure if you can legally increase right now
You want to avoid ending up in Rent Control over the increase

The cost of not doing it: Rejected increase, disputed notice, loss of rent increase.

The cost of doing it: GHS 250.

The difference between a legal increase and a rejected one is preparation. Get rent increase guidance →