Rent increase versus tenant retention for a small multifamily in Buenos Aires

[shareTheSignal]

A fresh check of nearby adverts puts comparable asking rent near ARS 4,816,000, which raises the question of whether to adjust the current ARS 3,757,000. The tenant pays reliably, takes care of the home and flags repairs early, so replacing them could cost more than the headline rent gap suggests.

Rather than choose between no increase and the full advertised figure, I am considering a smaller renewal increase—for example, one that deliberately leaves a clear retention discount—then reviewing again at the next permitted stage. How would others weigh that against likely vacancy and turnover work, once the lease terms and current Buenos Aires notice rules have been checked?

 

[teaAndPath]

Start by pricing the alternative, not just the gap. Estimate likely vacancy time, preparation work and the risk of replacing a dependable payer. Then compare that total with the additional rent from different increases. A renewal below ARS 4,816,000 can still be the better outcome.

I’d explain that you reviewed comparable asking rents, acknowledge the tenant’s strong history, and offer a figure that visibly reflects a retention discount.

 

[sam_page]

What adjustment method and timing are already written into the lease? That may matter more than the apparent market gap. Also, are the ARS 4,816,000 comparisons genuinely similar units in the same area, and are they asking prices rather than completed agreements? Before proposing anything, confirm the current Buenos Aires notice requirements and whether the increase can legally happen on your intended date.

 

[hill.quiet]

I’d be cautious about simply splitting the difference. Asking rent is not necessarily achievable rent, and an increase can look modest to an owner while still being difficult for the tenant.

The maintenance history has real value too: early reporting may have prevented larger bills. Ask whether the tenant wants a longer renewal in exchange for a lower adjustment. That gives both sides something concrete rather than presenting loyalty as a vague favour.

 

[teaAndPath]

Agreed on checking the lease first. A practical sequence would be: verify the permitted timing and notice, narrow the comparisons to truly similar homes, calculate one realistic turnover scenario, then make a written proposal with enough time for discussion.

If the tenant declines, don’t assume ARS 4,816,000 makes turnover worthwhile. Include vacancy, refurbishment and the locally required handling or return of the deposit in that calculation. A clear explanation and a specific renewal term should preserve the relationship better than opening with the maximum asking rent.