Raising Rent or Holding onto Good Tenants?

[Lacey A.]

Hey there! We've got two leases expiring this summer in the Austin, TX area, both with good tenants.

We are a few months out but already considering how to address the next lease cycle. Are you a landlord? Given the economy, how are you going to proceed with your leases this Spring/Summer? 

[Nathan Gesner]

Quote from @Lacey A.:

This is not an "either, or" scenario. You can raise the rent and keep good tenants. If your property is worth $2,000 a month then a good tenant will pay $2,000 a month.

Determine market rate and raise to that amount. If your tenants are excellent in every way, then you may consider keeping the rent around 5% below market as a reward or enticement, but I don't recommend much lower than that.