Long term tenants

[Christine Swaidan]

I appreciate the fact that these tenants have stayed for 14 years. In recent years we have painted, replaced flooring, remodeled bathrooms (tile, granite, cast-iron tubs) , new appliances, new granite in kitchen.  They always pay on time and I always react in a timely way to any repair issues.  It's not their fault that we have not raised the rent closer to market values. If they were to move I understand that I would need to do some work (replace windows and scrape ceilings mostly).

I just raised the rent $200 to $2200. I believe the market rent as is, is $2600 and if the upgrades are done it would be $2800-2900. (Southern California, end of cul de sac, ocean view, open space behind house, 4+2, single story, even though this is a 1970's tract house.)

My plans are to raise the rent by $200 a month next year but I am still uncomfortable that this is a slow process to get them closer to market rate.  I'd like to hurry this process along but I feel like a jerk if I raise the rent too fast and a shmuck if I let it go another year.

Do I owe them something for being long term tenants? Do I owe myself a raise for being an attentive landlord?