Property Manager Backing Out of Raising Rents

[Prag Patel]

One of my PMs told me they were going to raise the rent from 900 to 925 for a tenant who has a lease expiring soon. After speaking with the tenant, they told me that they will not renew the lease if rent was increased by $25, and then asked whether it's ok to recant the increase. 

My question: Is this a wise choice to back out of a rent increase? Tenants are paying on time, and not abnormally hard to deal with than other renters. My fear is that this sets a precedence, that management is "weak". What are your thoughts?

[Thomas S.]

Does it signal weakness. No, I would say it indicates a lazy landlord that does not operate an efficient business.

Replacing tenants should cost next to nothing beyond the cost of advertising and screening. There should be no vacancy time and maintenance cost to spruce up the unit is necessary regardless. The costs of replacing tenants is already build into every landlords expenses and a landlord should never bow to tenants personal needs in operating a business.  Landlords that avoid raising rents to maintain a single so called "good tenant" do not understand the business they are in. We are not operating subsidised housing. We do not ask tenants how much they would like to pay we tell them what they are required to pay.

If you are not in business to maximise the monthly return on your investment then you should sell the property and find something else to put your efforts into. Landlords do not subsidise their tenants rent. By doing so you not only lose potential income every month you also reduce the value of your property. Every rental should have annual rent increases.

Lazy landlords put tenants ahead of profits and should look at some other line of investment.

Additionally your tenant is manipulating you and will not move for the sake of a $25 rent increase.