Should I raise my rent?

[Jessica Hughes]

Hi, this is my first year landlording. I have a lease coming to an end around the end of april.

Market rates havent gone up at all and my unit is on the high end of that range according to rentometer. 

The tenant is very happy and low maintenance. He is planning on moving in 2 years because he is saving for a house and my rent is well under his budget, so I doubt an increase would make him move.  

I read that you should raise rents 3-5% a year, but should I raise rent to above market rates if that's where 3% puts me? 

My rent is 1495, average range in the market is 1350-1500. I'm cash flowing 300 on it so it's not like I'm dying on the price. 

I think 1540 would be pretty dang high for the area, so should I do like a super lame $15 increase or something just to set a precedent that increases can happen and blame it on property taxes or some crap?

[Jacob Sampson]

top of market rents with a good tenant.  That's the dream, don't rock the boat.  I have literally never raised rents on an incumbent (quality) tenant.  If you miss out on even a single months rent (due to turnover) because of the 3-5% raise you have lost nearly 2 years of that additional rent.  Makes no sense to me.  Quality tenants are what allow you to be profitable.