This approach lets you get closer to the market rate over time without shocking the tenant, especially since she’s been a good tenant.It’s also a good idea to explain to the tenant that you’re trying to bring the rent in line with current market conditions, and if she’s open to a longer-term lease, you could even keep the rent at the current level for another year.

This is new to me because I have had the same cell phone number since 2004 so it just always stuck with me as I was shocked.

Even if you could count on the 5% increase per year you mentioned, I would be shocked if your taxes and insurance increase per year was less than that.Roof 2 years old might need to be replaced within 10 years, water heater and HVAC may not need to be replaced, will sill surely need a number of maintenance events, ...all of which will increase your cash costs, and delay the cash return. 

I wouldn't be shocked if there's a political motive, but I definitely think it has to do with worries about the economy in general. 

Hell when you pull back the curtain most people would be shocked to realize that all those prim and proper super nice 50 year old lady Realtors that seem so nice; those ladies are some of the most cut throat sharks in the game.

Though I write that we’ll provide $XXX toward the funding of our borrowers’ next deal, like most lenders, I qualify it by stating that this is not a loan commitment but is pending approval of the property, an acceptable preliminary title report, and some other weasel words.Why any borrower or their agent would accept this is beyond me, but they do, and it seems to be what they want to keep the deal moving.

Having some preliminary figures in mind can help facilitate the conversation

I'm shocked to see $995. 

Our realtor said she was shocked and so was I.

You’d be shocked by how little actual screening many PMC’s do!