Raising Rent in Renewal Lease

[Jason Bach]

My wife and I recently bought a three-flat that we live in. We inherited one lease for one unit while being able to remodel and rent out the other unit. The unit above us is a two bedroom one bath where the current tenant has lived for 6 years. The unit is in "okay" condition and current two-bedroom units on our block rent between 1200-1300. The lease we inherited was at $875 a month. I informed the tenant we would be raising the rent to $950, believing this is quite generous considering the comps. The tenant has tried to haggle the rent down but I have stayed firm. My question is, should I write another increase into the renewal lease? I would like to be upfront and do not want to go through the "haggling" every year. I currently have put a five percent increase in a renewal for the lease. Strategies? Suggestions? Is this reasonable?