Lease due in December

[Jay Bob]

Hello all,

My Tennant's lease will expired on December 31. I planned to renew the lease. They are currently paying under market rate $1450 for 2 bed 1 bath. The average comps for the area are $1700.

I want to increase the rent to $1500 which is still under market and offer them free air conditioner if they sign it within 10 days.

One side of me wants to increase just $25 instead due to Covi19. They have been good tenants taking care of the property and paying on time. Thanks for your feedback.

[Kevin Paulk]

@Jay Bob I would increase the rent. You have a couple of things working for you. 

1. Your increase still puts you $200 below the market rate. It would be really hard for them to find something close to what there paying for in the area.

2. The likelihood fo them moving in the winter time is slim. Could happen but slim.

3. Your $50 increase is $4.17 a month. There would be a lot of time & energy spent on there part to look for something and then move for a $4 a month increase.

4. Seems like they enjoy staying there.

Cheers!