Is rental arbitrage a good bet?

[Jay Malaviya]

Hi BP community,

One of my tenant is living on property for more than a couple of years and never had the rent review. Recently I proposed rent increase (below market in good faith and relationship) to which he proposed if he can do rental arbitrage for certain time of the year he would be fine with the rent increase.

If any of you have experience with this, please share thoughts. 

Thanks in advance

[Nathan Gesner]

Quote from @Jay Malaviya:

Your tenant is asking to use your property to produce an income so he can afford the rent and stay. If you allow this, you lose control over who lives in the rental and you allow the Tenant to produce income with your property. That's a hard "No" for me.

If he can't afford the rent on his own, you should move him out at the end of the lease, clean the place up, and rent it at market rate to someone that can afford it and appreciate it.