To increase rent or not to increase rent

[Justin Sandall]

We are nearing the end of our first year lease on a SFR and trying to decide whether or not to increase the rent for the coming year. I've read that you typically increase ~3% annually but we are hesitant as we are near the higher end (but still wiggle room) of rents for our area and have had a great tenant who we don't want to lose. How do you guys decide whether or not to increase rent?