Funny "I'm raising your rent at renewal" conversation

[CJ Ashton]

So, I have a tenant that is finishing up their 3rd year in a rental I manage for my in-laws. Outside of one or two hiccups, they are really good about paying their rent on time. Additionally, they keep the place really clean, fix a lot of the little problems themselves, and nary a complaint from the HOA. In other words, the type of tenant I'd like to keep.

I signed them originally for a 2 year lease and wanted to raise their rent a bit ($25) for year 3.  They squawked so we negotiated to $10 increase.  Hardly anything, I know, but I wanted to let them know I look at the market rents every renewal.

So, lease is up in about 6 weeks and I start my homework.  Current rent is at $1275.  Zillow says $1475 but that has recently increased from $1400 just in the last 30 days.  Search the rest of zillow to see what nearby similar properties are listed for.  I talk it over with my better half and we decide that $1325 is more than generous as we'd like to keep them.

I send the tenant a text: "Love to keep you as tenants... Zillow says $1475... modest increase of $50 to $1325..."

It's hard to judge emotion through a text message, but the response was pretty huffy... "Well, you must not want to keep us as tenants.  We'll definitely be looking for something cheaper..."

I send another text:  "Sorry you're not happy with the small increase...  I checked the entire 10+ mile radius and there's only ONE similar property that is cheaper...  Love to have you stay, but good luck if you choose to go...  If you do leave I'll be listing it at $1450."

10 minutes later - during which time I'm assuming the tenant got online to look for other options - they reply...

"Is there anyway we can negotiate..."

Heh.

I wonder if tenants think I use a random number generator to come up with the rent amount.  I'll give good tenants a break with a below market rate but otherwise, I'm running a business.

Told them we were firm at $1325.  If I were a betting man, I guess odds are 75/25 that they'll renew.