Raising Rent On Good Long Term Tenants (cost vs. benefit)

[CJ B.]

Greetings BP'ers. 

I'd like to get some opinions on this, to see what other landlords might do in this situation/current environment etc. 

I have a:

Self-managed, out-of-state, fully paid off rental. 

Area Market Rents Avg. $1200 / mo. for similar units.

Tenant's current is $950/mo. (Market was $925 when they moved in). 

 Been in place for 3 years. 

Never late on rent, fairly low maintenance. 

Yes, I could raise rent to market. But, at what cost?  

1. Tenant's job/wage hasn't changed as far as I know.
2. Aftershocks of pandemic still linger in this area
3. Turnover out-of pocket costs 3-5K  while it sits vacant (fortunately never sits long +next to some desirable amenities.
4. Take time to advertise / arrange showings / find qualified tenants. 
5. I'm out of state / self-managed with one contractor to look over things when needed (who is quite in demand). 

What things do you consider when raising rent? 

What would you do in my shoes---Raise to market & take a chance of late rent, missed payments, move out? 

or renew lease with no changes? 

Looking forward to your responses!  

THANKS!!!! 

[Mike Dymski]

I understand not being at the top of the market but I don't understand the camp of renting to good residents at 80% of market rents when it's just as easy to rent to good residents at market rates.  If they leave, you will make up the turnover costs in one short year.  At a minimum, raise the rents $50 per year until you get somewhere near market.  Good luck.  I suspect your resident is not going anywhere as there is nowhere else to go and get subsidized housing.