Should I increase the rents? Tenant on fixed income/disability...

[Jon Huber]

This is regarding a triplex. Two tenants are great, and I never hear from them. One tenant feels that he needs a remodeled kitchen, new windows, doors, appliances, etc etc (he did receive new doors, cabinets, appliances... as they were pretty dated). The latest request was for me to baby proof his house (not happening, by the way). All three rents were below market when I purchase, and were increased $50 (from $800 to $850), at the next lease end. I am at that time for the units again, and I want to increase it another $50 to $900. Mostly to offset my costs of this one problematic tenant. One of the other tenants is on disability, and on a fixed income, and may not be able to afford the increase. This is my dilemma. NOTE: Market rents would be about $950-ish.

Scenario 1) Increase all the rents to be fair, and risk losing a good tenant, even though the rents are already below market.

Scenario 2) Increase all but hers, but risk "playing favorites" and angering the other tenants because why should they pay more...

Scenario 3) Increase only the problematic tenant, because he is the one benefiting from the updates

The tenant is pleading for me not to increase the rent, and I want to be sympathetic but I also want to be fair. Rents ARE below market, but not that far below... I don't want to be the heartless landlord that gives us all a bad name, but I also don't want to be taken advantage of.

Any insight would be awesome...