Manila renewal: raise the rent or prioritise a reliable tenant?

[writesAndReed]

My Manila tenant pays on time, flags maintenance issues early and looks after the property. They currently pay PHP 380,900 for the same period that comparable market rent appears to be around PHP 456,000. I do not want that gap widening indefinitely, but vacancy, preparation and an unknown replacement tenant could cost more than a cautious increase would recover. At the next renewal, would you propose a small predictable rise, hold the rent, or pair an increase with agreed improvements?

 

[luca.dove]

I would favour a modest increase rather than trying to reach PHP 456,000 at once. First estimate the realistic cost of turnover: vacancy time, cleaning or repairs, reletting work and the risk of poorer payment reliability. That gives you a better comparison than the headline market figure. Put any increase and maintenance commitment clearly in writing, and confirm the lease and local notice requirements before setting the date.

 

[askTheWire]

Before the renewal date, I would confirm whether PHP 456,000 represents signed agreements for comparable Manila properties or merely advertised rents. The choice is not simply between PHP 380,900 and the higher figure: retaining a reliable tenant must be weighed against vacancy time, preparation costs, and the uncertainty of a replacement.

It is also worth confirming that both amounts cover the same period and noting exactly when the current term ends. A staged offer could set a moderate increase now, with particular improvements included only if the tenant values them, followed by another review at the next renewal. Keep the deposit outside that negotiation and maintain separate records of condition and any eventual deductions.