Increasing Rents without losing tenants

[Gerardo Dominguez]

Hello BP'ers!  I need your advice.  I have a tenant whose lease is expiring soon.  So far she's been a great tenant so I don't want to lose her.  However, I also want to increase the rent to get it closer to market rate.  She's currently @ $850 and market is ~$900.  I was thinking of raising her to $875; about 3% increase.

Based on your previous experience, is this a reasonable increase?  If not, how high should I increase the rent?

Thanks in advance!