raising the rent or holding it at its current rate

[Joe C.]

I have a great tenant for 2 years in that she pays timely and never asks for anything. She pays $1,900/month in rent. She is a doctor and her husband an engineer. I was thinking on raising her rent by $50/month. My expenses went up $40/month. On the other hand i am thinking about not raising her rent b/c she is an excellent tenant. Feedback would be appreciated.

[Theresa Harris]

What are comparable rents in the area?  If they are on par with what you are charging, increase the rent by $20, if they are more than what you are charging, increase it by $40.  It doesn't matter what they do for a living, it is how much rents are in the area.  Having small increases each year, gets the tenants used to increases.  When they are paying $1900 a month in rent, most people are not going to move over a $20-40/month increase.  Explain that your costs have increased.