Problem Free Tenants Request Cut in Rent for Renewing Lease ???

[Zachary Bellinghausen]

I have a condo rented walking distance to classes at University of Utah. It is in a small 12 unit condo complex. The rental is  2 bedroom, 1 Bath, 837sq ft. I have had it rented at $1400 for the last year to two college students that have never missed a payment and have zero issues with them. They texted me yesterday telling me that they were interested in possibly renewing the lease for another year but were wanting to know if I could renegotiate the price of rent. I know when I listed the unit last I started high asking for $1400 and was somewhat shocked when these two students/parents were eager to rent. I have contacted a local PM and they told me that they actually have two units in my building rented for $1250. I did a rent analysis on RentoMeter and based on the last 12 months, within a .75 mile radius average rent is $1355. So....would you drop rent and keep tenants, or tell them no and HOPE to keep your tenants?