Raising rents 12% to market rents?

[Ally Kumar]

I have heard general rent increase of 3-5% every year if tenants are renewing their lease. However, rents have gone up about 12% since last year in my area. Is it advisable to raise the rent to market rent (or slightly under rent since these are good tenants) or does traditional increase of 3-5% is more reasonable? Whats the recommendation if rents are going up significantly? Thanks for your input.