Rent increase versus tenant retention for an apartment in Riyadh

[QuietTrail]

My main constraint is avoiding a rent increase that produces more vacancy and turnover cost than additional income. The Riyadh apartment currently brings in about SAR 4,362, while similar homes are being advertised near SAR 5,310.

This tenant has a strong payment record and looks after the apartment, so matching the full advertised figure may not be worth the retention risk. On the other hand, leaving a large gap indefinitely could make a future adjustment harder.

Would you use a simple rule here: retain the current rent if the likely vacancy and refurbishment costs outweigh the gain, but propose a smaller increase if the difference remains worthwhile after those costs? Before discussing a number, I also plan to check the contract dates, required notice and current local rules.

 

[hugo_bell]

I would not jump straight to SAR 5,310. An asking rent is not necessarily the amount another tenant will actually pay, and even a short vacancy could erase much of the gain. First compare genuinely similar apartments, then price the likely maintenance and turnover work. If the gap still looks meaningful, propose a smaller adjustment with plenty of notice and explain it calmly to the tenant.

 

[nova.pike]

I partly disagree with framing retention as automatically cheaper. If the tenancy has remained well below comparable rents for a long time, avoiding every meaningful adjustment can create a harder discussion later. The missing facts are when the contract renews and what notice or increase conditions apply to it. Verify the current Saudi requirements and the tenancy terms before proposing a figure. I would also keep the tenant’s payment and maintenance history separate from the deposit, which only becomes relevant if the tenancy ends.