Small dilemma: rent increase versus tenant retention for a Delhi townhouse?

[KindHarbor]

I'm trying to treat this as a business decision without being unreasonable. Asking rents for comparable Delhi townhouses appear close to ₹360,100, while my tenant currently pays about ₹292,400. They pay reliably and look after the home.

Would you make a modest adjustment to preserve the tenancy, or move nearer the advertised market figure? I'm weighing the gap against vacancy time, refurbishment and turnover costs. I also want to follow the applicable notice rules and handle any renewal and deposit arrangements properly.

 

[StillDoor]

I would not treat ₹360,100 as automatically achievable just because it is being asked. A reliable tenant with a good maintenance history has real value, and even a short vacancy plus preparation costs can consume much of the increase. Show them the comparables, propose a smaller rise, and leave room for discussion. First check the tenancy agreement and the Delhi rules that apply to this particular property before giving formal notice.

 

[quinn_deals]

What period do those figures cover, and when does the current term end? Also, are the comparisons genuinely similar in size, condition, furnishing and location? Without that information, even a “modest” increase is difficult to judge. I would also separate necessary maintenance from the rent discussion; repairs already owed should not be presented as a benefit exchanged for accepting more rent.

 

[quinn_deals]

One caveat to the retention argument: keeping a good tenant does not mean freezing the rent indefinitely. A documented, predictable adjustment may be easier for both sides than postponing the issue and later proposing a much larger jump. I would calculate the net gain after a realistic vacancy and refurbishment allowance, make a written proposal well before renewal, and clearly record what happens to the existing deposit. If the legal position or notice period is unclear, confirm it locally before sending anything formal.