Would you decrease monthly rent in order to keep a great tenant?

[Cassidy Burns]

Good Morning BP,

I have a wonderful tenant who has been with me for 8 months now and just reached out to me yesterday that she has to move May 1 as the rent is a littler higher than she would like to be paying ($625 + 2x$25/pet Fee= $675 total)

The particular unit was a BRRR and has had a lot of very nice updates, I have refinanced, pulled all of my initial investment out, and is now INF% Cash on Cash and still has 30% Equity and is cash flowing $200/month after all PITI, expenses, cap expenditures, property management, etc.

The Question is, do I offer to reduce the rent to maybe $625/month in order to keep the tenant for a longer term lease?

Would love to hear your thoughts.

[Joel Florek]

@Cassidy Burns Make sure you think of every dollar as 12. If you reduce by $50 you are reducing by $600. What does $600 buy you? Over 2 years that is $1200? I can do a lot with $1200... When I first started I was way too nice in keeping rents low. Now I push rents and inevitably have those who move out. But I also have a lot more cashflow and can be more proactive in making upgrades to other units who are able to pay higher prices. Your the one that has to sleep with the decision but if you can fill the unit fast I would go get someone new.