Reduced rent for good and long term tenants

[John Chapman]

How much of a discount do you recommend for longer term renters that are good tenants?  Should you keep the rents up to market or nearly so or give your longer term tenants a substantial discount (10% or more).  What are your thoughts?

[Frank Maratta]

@John Chapman

For my good long term tenants I do not raise the rent until they are 20% to 15% below market rents. Good tenants are hard to find and I would rather collect less money then risk losing them over an increase. Once they are under 20% market it makes sense for me to start thinking about taking the risk of raising rent. But I don’t bring them up to market, I still stay about 10% below to try to keep them. If they stay, great, if they move out - then I get a renter at market rate.