You need to ask why.If your tenant is legitimately late on a consistent basis, then yes, you need to get him out.If he was late once or twice but otherwise has been an outstanding tenant who takes care of your property, I would follow the advice of your PM with a smaller increase.All that to say, if you think it's severely under market value, your PM needs to have an open and honest conversation with the tenant letting them know so he can expect a large increase at time of renewal.

Next time someone says "Bay Area real estate is too expensive, and unfriendly to landlords because their a bunch of evil lefties, and it's impossible to make anything cash-flow positive, and the cap rates suck, and bla bla bla," I will refer them to this thread and your outstanding success in....

Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy).

I am doing some research, and therefore came across your post (albeit a number of years later) so I thought I'd comment my experience....Very long story short as possible; as newbie lenders back in 2019 we lended to a flipper out of Columbus who obtained by wholesale a 4BR house close to downtown and within a short walk of Nationwide Children's Hospital in an area which is going through much gentrification. 

You can call any nationwide lender which may have better option for you.   

You can call the local utilities and inquire if there are any outstanding bills. 

Nationwide rates hit a low of 2.7% - so there has really never been a better time "spread" wise.Long term, I think NYC will come back as it always has time and time again.

Intel has spent over $100 billion on new chip factories as well as Nationwide Children's Hospital spending millions of dollars on acres to expand even more.

Communicate with tenant about payment of outstanding bills and prompt payment.

Brian Sheldrick @ Capital Communications FCU - Cap Com is a outstanding lending partner that we have and will continue to work with for all our acquisitions.