Lease Renewal Incentives

[Michael Williams]

We have great tenants, they've been with us for almost a year now. This property is located in Sacramento, its 5 min south of downtown in a great area. They haven't missed a payment and they keep the property in great condition. We would like to have them sign another year lease, how much should we increase the rent ($25-$100)? And what kind of incentive can we offer them to make the deal better for them? 

[Greg M.]

I don't understand the logic of raising the rent and then offering an incentive to renew. 

I'd only raise the rent if the unit were suddenly significantly under market. Keep in mind there is significant value to having an exceptional tenant.