Fair Rental Increase on Same Tenant?

[Caleb Gowan]

Fair market rent is up $500 since the tenants signed their last lease, and now they want another year lease. Original lease is $1900, could easily go for $2400 if I put it back on the market. We wouldn’t go the full $500 since they are good tenants, easier to not do tenant turnover, etc., but is there an increase percentage that’s too much?

What is a fair increase? Is there a percentage beyond which you just don’t go in a single increase? Or would you just kick it up to market rate and put the ball in their court?