Rent increase after 2 years...

[Vanessa S.]

Hello everyone, I have been charging my tenants the same rental amount since they moved in back in April 2015. After surveying rental prices in the area, it is time to increase the rent to keep up with the current market value. I recently sent a letter both certified and via snail mail notifying them of the 16% increase in rent. My tenants are trying to negotiate down the increase. Per my research of comparable properties of the same size, I am asking for a fair rental amount. In fact, the amount I am increasing it to is less than what is listed on rentals in the same neighborhood per Craigslist. These tenants pay on time but they are complainers about the smallest of items- which is why I wouldn't be too upset about losing them if they choose to part ways. My property is in a very desirable area so finding new tenants who would pay the new rental amount would be easy. My question- Should I stick firmly to my proposed rental increase of 16% or offer a slightly lesser amount, e.g.: $50 less? Thanks in advance!!

[Dan Schwartz]

@Vanessa S. If you wouldn't be sad for them to go....and you are confident that you could rent the unit for the market price you want.....and you could afford the turnover, then let them go.

Alternatively, if you know what a turnover is likely to cost you (one month lost rent, deferred maintenance, time involved in showing it and leasing it up), and a $50 per month/$600 per year discount costs you significantly less than that, then offer the discount.