Raise Security Deposit at Renewal?

[Abi O.]

Hello All 

I would appreciate getting your brilliant thoughts on a topic I am making a decision on.

Situation:

 I inherited a tenant who had been in my building for 5 years when I purchased my 3 fam building 2 months ago and was transferred her security deposit at closing. Her lease is up for renewal and in NJ I am legally allowed to ask tenants for 1.5x rent. I received less than one months rent (0.7x one month to be exact) at closing and I am considering asking her to make up the difference when she signs the renewal.

For some context

- She has lived in this unit for about 5 years so I am not sure how to discern what damage she caused during my ownership vs the prior owner. However, I believe it may be risky to have such a low amt of security from her (i.e. limited recourse for future damage) hence the question.

- This may come as a surprise to her since her rent has stayed the same for 5 years and I would essentially be asking her to cough up almost $800 around the holidays which may seem insensitive.

- Her rent is at least $150 below market. I believe she knows it, but I am not planning to raise rent since I have disturbed her quite a bit with the reno I am doing in my unit right above her. Also want to do some renovations on the property first to justify the increase I plan to ask for next year. And to be honest, I don't feel like dealing with a vacant unit right now if she protests.

My questions are:

- Should I ask her to make up difference so that I am holding 1.5x/rent and have some sort of recourse for future damage? Does it even make sense since it may be hard to tell when damage was caused?

- Is asking for security more annoying than raising her rent? I think not since a security deposit is technically her money that is supposed to be returned to her, but curious to get other thoughts.

Thanks in advance