Rent increase versus tenant retention for a detached home in Rome

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Homeowner
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I could move the monthly rent closer to €2,378 and risk losing a dependable tenant, or leave it at €2,071 and accept a widening gap. Neither option feels particularly sensible on its own. The tenant pays reliably and has taken good care of this detached home in Rome, while even a brief vacancy and basic preparation for reletting could consume much of the extra income.

I’m leaning toward a consistent review based on achieved local rents, the tenant’s maintenance history and the likely cost of turnover. If the agreement and local notice rules allow an increase, would you offer a modest staged rise to a good tenant, but seek the full market level only after a natural vacancy?
 
Start with the turnover calculation rather than the headline asking rent. The full gap is €3,684 over a year. Compare that with even a short vacancy plus cleaning, repairs and reletting costs. A reliable tenant may justify keeping part of the gap. I’d calculate the break-even period, confirm what increase the contract permits, then discuss a modest adjustment with plenty of notice.
 
How strong are those comparables? Asking prices are not necessarily achieved rents, especially if the homes differ in condition, outdoor space or exact area. I’d also look at this tenant’s maintenance history: have they reported issues promptly, and is any refurbishment already due regardless of who occupies the house? Those details change the turnover calculation considerably.
 
I’d be cautious about turning this into a rigid formula. Deposit handling, notice requirements and permitted rent changes depend on the agreement and the applicable Italian rules, so those should be checked before proposing anything.

Practically, use the same sequence each time: verify comparable homes, estimate realistic vacancy and works, record payment and maintenance history, confirm the contractual position, then choose between no change, a partial increase or moving toward market rent over time. In this case, reliability argues against jumping straight to €2,378.
 
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