Lease renewal and rent increase by 5.5%

[Pal Sa]

Bigger Pockets forum, 

Happy Thanksgiving to you all.  My rental home is coming up for lease renewal. Our tenants would have stayed there for a year by then. They have been good. They pay rent on time. I am able to work with them on maintenance requests and other issues. I would like to offer them a lease renewal opportunity. I am interested to have them continue as well. 

I am thinking of increasing the rent by 5.5%. I am in San Francisco Bay area. I looked at the comps now. Similar ones are asking for a minimum of 10% or more than the current rent I am charging. Charging 10% more will actually put me in a cash flow-positive situation but I am wondering if they think it is a steep increase. I can take one step increase at a time. 

What do you think about a 5.5% increase?