How do you decide when to actually increase the rent for a tenant who is staying another year? My general approach with my own rentals is to prioritize a reliable tenant over hitting the maximum market rate. If I have someone who pays on time and takes care of the property, I’m usually fine with keeping the rent exactly where it is for a year or two, even if taxes or insurance have gone up slightly.
I only really look at an increase if the market rate gets significantly higher than what they’re currently paying, or if my own expenses have spiked. To me, the cost of a vacancy is almost always more expensive than the extra $50 or $100 I’d get from a rent hike.
I’m curious if you have a similar “tipping point,” or if you prefer to do small, consistent increases every single year?