Tenant wants addl 2-yr at same rate - it's already below market
Hi BP,
I have a tenant that has been in the property for a year and wants to renew at the same rate for the next 2 years. This was sent to the PM prior to their telling them that the rate would increase 5%. This is commensurate with the capital upgrades done prior to their move in last year and the current market - I've seen other properties that have not gone through any upgrades that are the same sq ft, bed/bath, etc.
In the likelihood they accept the fact there will be an increase, what is the custom for the 2 yr period on any increases? Should it be locked in or should it be with some increase perhaps not a full % in order to keep up with market rates. From what I see with upgrades the property is below.
Thank you
Daria