The cost of an attorney can be significantly less than losing your case because you failed to follow the law.

In fact, I had over a dozen tenants break their lease early last year (out of 300+) and I made extra income on all of them but one and didn't lose any money on any of them.

I know some will scream that insurance will cover you, but not always...They can deny your claim and taking them to court over it may add to your problems if you lose and have legal expenses now to boot.

You need to know the market, and look into the rent roll and determine if those opportunities exist, or are you losing money due to existing leases-another reason to justify your offer. 

Nice way to lose a customer.Warning for anyone: Keep away from using Geico for homeowners--4 insurance shifts, and every single one included wrong information. 

Even if you lived there for a year or so and decided to sell it, you could theoretically even lose money on the sale, but what you gained from house hacking for that period of time would out weigh that loss.

You can lose your EMD.

You're the business that keeps accepting overqualified applicants for key positions and keeps losing them to headhunters because they have so many options other than working for your stingy self.So I guess my slumlord bonafides are now fully on disply with this post, but I'll continue treating my tenants like human resources to be fully exploited to the best of my abilities (just like a corporation), and you can keep on looking for exemplars of the finest past conduct to fill your vacancies (people whose next step is buying a house when they get sick of renting, with their good credit and excellent record), and we'll both do well in our market segments, you in your clean Canadian suburbs, me in my Rust Belt ghetto cesspits.Frankly, if I had a tenant applicant show up with the kind of clean record you're looking for where I own low-income rental properties in the 'Burgh, I'd immediately suspect identity theft.

Now if you are losing sleep because of the 4% than the amount is too much. 

You could prolong your financial suffering and continue to supplement his rent but your best option would be to go directly to $1550 and stop losing money.