Rent increase versus tenant retention for a 4-bed Delhi townhouse

R

route.fresh

Landlord
Established
My preferred outcome is to keep a reliable tenant, but the apparent rent gap is becoming difficult to ignore. The four-bedroom Delhi townhouse currently brings in about ₹691,900, while similar homes are being advertised nearer ₹819,700. The tenant pays on time and takes care of the place, although there are frequent maintenance reports.

I would rather agree a measured rise than aim immediately for the higher figure and incur vacancy, preparation work and reletting costs. Before choosing an amount, I plan to check achieved rents where possible, the review terms in the tenancy agreement and the timing of the last increase. How would you raise the subject fairly, follow the relevant notice process and avoid treating legitimate repair requests as a mark against the tenant?
 
Start with the cost of replacing this tenant, not the advertised rent alone. Asking prices do not show what homes finally achieve, and even a short vacancy plus preparation work could consume much of the difference. I’d propose a measured increase, explain the comparable properties calmly, and give proper notice under the lease and applicable Delhi rules.
 
Before choosing a figure, when was the last increase and what does the tenancy agreement say about reviews and notice? I’d also separate routine maintenance from tenant care. A long list may reflect the townhouse’s condition rather than how the tenant treats it.

I’m not convinced even a “modest” rise is automatically worthwhile. Compare the extra annual rent with realistic vacancy time, repairs, reletting costs and any deposit reconciliation.
 
That’s a fair caveat. I’d first verify that ₹819,700 reflects genuinely comparable townhouses rather than optimistic listings. Then put two options on paper: retain the tenant at a smaller adjustment, or relet after allowing for vacancy and work. If the retention option still wins, send a clear written proposal, address outstanding maintenance separately, and confirm notice and deposit handling locally before changing anything.
 
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