Should I raise rent on a great tenant

[Jared Friedman]

Hi. I own a rental in Southern California that has been rented by the same tenant for the past 5 years. The tenant has paid rent on time each month every year for the past 5 years. They keep the place in excellent condition, the neighbors love them and they are super low maintainance. The property is owned free and clear and my cash flow is $1300 month after taxes, insurance, Hoa dues, and a small buffer for maintenance. 5 years ago I rented this for $2100 month. Now 5 years later comps are renting for $2500. I haven't raised rent because this tenant is awesome and the checks keep rolling in without any issues. My question is should I raise rent just because I can? I don't want to be greedy but does anyone out there never increase rent on a long term tenant? Would giving them a 3 month notice that I will raise rent by $200 seem like a steep increase at one time? Any suggestions?