How much is a quality tenant worth?

[David Schmiediche]

Howdy Bigger Pockets Members!

It's coming time to renew leases for some of our units and my business partner and I closed on eight more doors in January on two quadplexes in College Station that had way below market rents. 50% of the units are $125-$175 below market rents. Market rents are $800 and some of the tenants are renting for $625 or $675. Most of these tenants are good tenants that we have good relationships with and are fine with them staying at the properties if they choose to. We will be raising the rents slightly when it comes time to renew their leases.

This made me curious as to how much a good quality tenant is worth to other landlords. By keeping tenants in the property you are avoiding the headaches and expenses of filling a vacant unit. So, how much is a quality tenant worth to you? 7-10% below market rents?