Keep a reliable condo tenant below market, or raise the rent gradually?

[AbleLens]

I’m deciding whether to increase the rent on a condo tenant who pays on time, reports problems early and looks after the home. They currently pay $7,024, while comparable market rent appears to be about $7,771.

I value the stability and don’t want turnover costs or a vacancy, but I also don’t want the gap widening indefinitely. Would you make a modest predictable increase, leave it unchanged, or pair improvements with a rent review? I’ll confirm the local notice rules before doing anything.

 

[OtisCove]

I’d choose a modest increase rather than jump straight to $7,771. The tenant’s payment and maintenance history have economic value, especially if even a short vacancy plus preparation costs would consume the extra rent.

How confident are you in that market figure? Asking rents for superficially similar condos can overlook condition, exact location and included amenities. Compare like with like, then give clear notice and avoid presenting an improvement as a favour if it is really overdue maintenance.

 

[nia_sage]

I disagree with automatically raising it just because there is a gap. First estimate the break-even point: how many months of the proposed increase would it take to recover one vacancy period, turnover work and any deposit-handling costs? If that period is long, freezing the rent for another term may be rational.

That said, a small increase can prevent a later shock. I’d separate essential repairs from optional upgrades, verify the local notice requirements, and offer the tenant a straightforward renewal rather than a complicated improvement bargain.