Rent increase versus tenant retention for a small multifamily in Mexico City

[WorthyVale]

MX$4,030 a month is the gap I am weighing: the current rent is MX$42,390, while similar Mexico City units are being advertised near MX$46,420. This is a small multifamily property, and the existing tenant has been dependable and has looked after the unit well.

The missing fact may be whether those listings actually secure that rent before vacancy and turnover costs erase the increase. Would you offer a smaller adjustment to support retention, assuming the lease timing and local limits allow it? I also want to address any maintenance concerns before starting that conversation.

 

[OrlaIves]

The gap is MX$4,030 a month, or MX$48,360 over a full year. One vacant month at the higher asking rent would consume nearly all of that before cleaning, repairs or reletting costs. With a reliable tenant, I’d lean toward a smaller adjustment rather than going straight to MX$46,420.

 

[countTheBook]

When does the current lease term end, and does it contain an adjustment clause? Also, are the MX$46,420 comparisons genuinely similar units, or just optimistic listings? Asking rent is not necessarily achieved rent. I’d also consider whether there are unresolved maintenance items, because raising rent while repairs are pending can sour an otherwise good relationship.

 

[GoodAnchor]

I agree that asking prices need scrutiny, but I wouldn’t automatically make retention the overriding goal. Holding rent too far below the market can leave you facing a much harder conversation later. A staged adjustment may be fairer to both sides, provided it complies with the lease and the applicable Mexico City notice and increase rules.

 

[sam.archer]

Present it as a review, not an ultimatum. Explain that you considered comparable homes, the tenant’s payment and care history, and the costs avoided by renewing. Give the required notice in writing and leave time for a response. If you propose less than MX$46,420, stating that clearly shows the value you place on continuity.

 

[able_echo]

I’d keep the deposit separate from the rent discussion. It becomes relevant if the tenant leaves, but it shouldn’t be treated casually as refurbishment money or substituted for rent. Document the unit’s condition and handle any return or deductions according to the lease and local requirements. That also gives you a cleaner estimate of the real turnover risk.

 

[drawTheHarbor]

Run three simple scenarios before choosing a figure: renewal with no increase, renewal with a modest increase, and reletting at the advertised market level after a realistic vacancy period. Include maintenance, preparation and tenant-finding costs in the last one. Then verify the permitted amount and notice process locally. The financially sensible increase may be well below the apparent MX$4,030 gap.