A market check revealed a wider rent gap—how should I approach a reliable tenant?

[theo_cedar]

My tenant has given me every reason to favour stability, which is why I hesitate to make a large adjustment. The rent is currently ₩5,912,000, compared with roughly ₩7,506,000 for similar properties, and the property itself is worth about ₩1,408,000,000.

They are reliable with payments, take care of the place and flag maintenance issues promptly. Even so, leaving the rent untouched could make the difference increasingly difficult to address. Would you introduce a small scheduled rise, hold the current figure, or review it after making improvements? I am trying to weigh that against vacancy time, reletting costs and the uncertainty of a new tenant.

 

[theo_cedar]

To clarify, I am not considering jumping straight to the full market figure. I’m leaning toward advance notice of a smaller increase, but I’m unsure how much weight to give payment reliability and the maintenance history. I also need to confirm the lease terms and local notice rules before proposing anything.

 

[knitsAndAtlas]

Start with the cost of losing them, not just the ₩1,594,000 gap. Estimate realistic vacancy time, preparation work, reletting costs and the risk of poorer payment or property care. Then compare that with one year of a modest increase. A dependable tenant has financial value, although freezing the rent indefinitely can make the eventual adjustment much harder.

 

[FieldAnchor]

Bundling improvements with an increase feels muddled, but raising the rent without discussing the property's condition can feel blunt. I would keep required maintenance separate, since otherwise the tenant may think the work is conditional on accepting the new figure.

A moderate increase with clear advance notice is easier to understand. Before choosing the amount or date, check the lease and the local rules on notice, permitted changes and any effect on deposit handling.

 

[avery_wilde]

Ask one missing question before choosing a number: how strong are the market comparisons? Advertised rent is not always the same as rent actually agreed for a similar property.

If ₩7,506,000 is well supported, give proper notice and propose a staged increase that still leaves the tenant with a reason to stay. If the evidence is thin, renew closer to the current ₩5,912,000 and set a date for another review rather than forcing a decision from an uncertain estimate.