Increasing Rent after 2 year contract

[Marimar Hernandez]

Hello,

We have tenants in our home in Morgan Hill CA since May 2012. They signed a 2 year lease. The rent we wanted was 2,800 but discounted it to 2,600 per month for a 1 year prepayment for the first year and then 2,600 per month on a monthly basis for year 2.

We are getting ready to renew the contract and I am trying to determine how much I can increase rent. Our taxes are going up and so is insurance.

They pay for ALL utilities a gardener, and even their alarm system. They are extremely good tenants. They always pay on time, take care of the house and always keep in touch.

Any suggestions?

Thanks!