He's following the rules, albeit with extra payment :) Personally I would let it rise till renewal.  

Most of my tenants renew their leases.

@Brian Gibbons I have listed the incomes vs expenses below Income Monthly Annual Gross Income 895.00 10,740.00 Expenses Monthly Annual Taxes $112.92 $1,355.00 Insurance $29.17 $350.00 HOA $125.00 $1,500.00 Management Fee $71.60 $859.20 Vacany & Collections $71.60 $859.20 Monthly Repair Allocation $44.75 $537.00 Total Operating Expense $455.03 $5,460.40 Net Operating Income 439.97 5,279.60 I spoke with the current property manager and he stated that this rent is very close to the market value and they may look at raising the rent $25 when the lease renews in June.When I look at this Pro Forma it shows me that this would not be a great property for me to buy and hold based on the amount I would need to finance, so I would ultimately need to sell this property to a retail buyer.

Craigslist is free to post and they actually renew your ad when you change the price....  

I am debating the same on a unit I have that is due for renewal on February 2015.Current rent for that unit is $1000/month.Next door identical floor plan not as updated and facing the street traffic just put up a for rent sign asking $1300/month. 

Even the local tenant rights association says, "So long as a landlord is not discriminating in violation of the Fair Housing laws, or retaliating in violation of the Texas Property Code, a landlord can refuse to renew a lease for any reason."

@Derek Carroll In Canada most mortgage loans have to be 'renewed' every 5 years.

You have to follow your lease. you can't change it it till renewal time.

-Any coverage declined, cancelled, or non-renewed during the last three years?

It says how long it is for and amount and if it transfers upon renewal again or expires.The lender will hold reserves for TI's and LC's that the buyer is using when you eventually sell so it's good to go ahead and count for it.For instance regardless of whether your center is 100% occupied and regardless of what you actually used for TI and LC the buyers lender will determine UCF (under writeable cash flow) off of that.If the area has 5% market vacancy the lender will take that away as while the center is full today in the future likely one will go vacant and turn etc.