​To Raise Rents, or Not To Raise Rents

[Carlos Rovira]

I have a tenant who's lease is up. I am going to renew for an additional 12 months, but would like to raise rents. He currently pays $1,300/mo. I am planning on raising by $40 (~3%).

The kicker here is that this particular tenant does not get along with my other tenant who lives in the unit next door. He has expressed his hatred towards that tenant multiple times. My concern is that if I try to raise the rents, this tenant, who is an excellent tenant, will move out.

My questions for everyone is the following: Do you think that a 3% increase in rent is enough to drive this tenant away or should I move forward with raising it? I inherited this tenant from a previous owner, and don't want to set a precedent that I am the type of owner who does not raise rents.