Should I raise rent or keep it as is to keep a tenant?

[Cheza M.]

Hi all,

I have a tenant who's in month-to-month lease and I'm trying to raise the rent next month by $50 more ($1,200 to $1,250) which is, in my opinion, a reasonable price based on the comps around the area. My PM suggested the same thing. However, the tenant said in her email:

"I can barley afford 1200 why are you raising it 50$ I already pay water and sewer.. I honestly cannot afford 1250$ you’d at least have to give me to the end of next year to be able to afford an extra 50$ in all honesty this house in this neighborhood isn’t worth 1200 let alone 1250$ an the only ready I’m here is because I’ve already put so much money into this house just to leave .. if you can kindly give me a call at id appreciate it"

Am I charging the tenants a bit high based on the comps in the area? My SFH is located in Stanley Ave, Maple Heights Ohio, 44137.

Neighborhood Class: B
Square Footage: 1230
Bedrooms: 4
Bathroom: 1.5
Year Built: 1920
Rehabbed: 2021

I was already expecting complaints, because of course, tenants wouldn't just say nothing when you raise the rent. But I'm still wondering what do you guys usually do when they complain or refuse the rent increase aside from kicking them out? I feel like she's a good tenant, but at the same time, I don't want to just keep the rent as is when it needs to be increased. What are some ways to handle this based on your experience as a landlord who needs his/her rent increased? Should I show her the comps in the area? Or wait until next year to raise the rent like she wanted? What would you guys do? Thank you so much in advance for any suggestions!

[Nathan Gesner]

I just looked at your market and you could rent the place for $1,300. Maybe more depending on neighborhood and quality. She points out that she's paying water and sewer. Who's paying electricity and heat? I'm seeing places comparable to yours for $1200 - $1300 and the tenant pays all the utilities, which means yours may be worth another $100 - $200 if you're including utilities.

RED FLAG: she said she can barely afford $1,200. Another $50 is causing her concern, which indicates she's paycheck-to-paycheck. Mechanical trouble with the car, a family emergency, reduced work hours, a bad health event, and 17 other common life issues could throw her off track and turn her from a tenant that barely scrapes by to a tenant that stops paying rent and drives you into the poor house. I would seriously consider letting her know this home is not affordable and she should look for something more affordable.