Early repair reports changed my view of a reliable tenant’s rent gap

[teaAndPath]

My Buenos Aires tenant pays on time, reports problems early and looks after the property. Comparable market rent is about ARS 8,922,000 for the same rental period, while the current rent is ARS 7,891,000.

I do not want that gap to keep widening, but losing a reliable tenant could mean vacancy, turnover costs and more risk. Would you make a small predictable increase, freeze the rent, or pair a review with agreed improvements?

 

[teaAndPath]

The difference is ARS 1,031,000, so it is meaningful without being enough to justify a bad outcome by itself. I’m leaning toward discussing a partial increase rather than trying to reach market rent in one jump. How would you put a value on payment reliability and good maintenance history when deciding the amount?

 

[jade_deals]

I would not chase the full ARS 8,922,000. Work out what even a short vacancy would cost, then add advertising, preparation and the uncertainty of a new tenant. If that total exceeds the rent forgone by renewing below market, a moderate increase is economically defensible. Predictability also gives the tenant a fair chance to budget.

 

[zane_homes]

Before choosing an amount, how firm is the market comparison? Are those properties genuinely similar in condition and location, and are they actually being let at that figure rather than merely advertised? Also check when the existing agreement permits a review and what notice is currently required in Buenos Aires. The contract and applicable local rules may narrow the options.

 

[timo_budgets]

A phased increase is easy to revisit; allowing the gap to widen for several more years is not. The tenant’s reliability justifies staying below a well-tested market figure, but it does not require holding at ARS 7,891,000 indefinitely. A modest rise now, with a clear date for another review, may avoid a much sharper and more difficult adjustment later.

 

[esme.york]

A practical approach would be to show the tenant the comparison, acknowledge their strong record, and propose a smaller increase with a date for the next discussion. If there are improvements they actually want, price those separately rather than presenting routine maintenance as a favour. Put any new amount, timing and agreed work in writing, and keep deposit handling separate from the rent negotiation under the applicable agreement and local requirements.

 

[timo_budgets]

Agreed on keeping the deposit out of the bargaining. It should not become an informal cushion for either side. I would first test the ARS 8,922,000 comparison, estimate a realistic vacancy period, and then offer a phased figure. If the tenant pushes back, that gives the owner useful information before deciding whether the remaining gap is worth risking turnover.