Rent increase at the two year mark

[Linda Thomas]

BP,

I have a tenant that moved into a property Jan 2021. I did not raise the rent at the one year mark. The rent is $900.00 a month for a 3bed house. Rents have gone up drastically and after doing a market analysis they are going for about $1350.00. Would you recommend increasing it that much 60 days prior to the lease expiration - a $450.00 increase? or maybe somewhere in the middle at like $200.00? So far they have been a good tenant. Always paid the rent on time and taking care of the place. What would be the best approach and how would I go about justifying it? just put in the letter that it is due to increases in taxes and insurance costs and rent market rate?