Rent increase versus tenant retention for an apartment in São Paulo (1 bed)

SageDoor

Property manager
Market asking rent for this São Paulo one-bedroom appears to be around R$15,570, while the current tenant pays about R$12,480. They pay reliably and take good care of the apartment, so I’m reluctant to chase the full difference only to face vacancy, turnover and refurbishment costs.

There is also a fairly long maintenance list. None of the individual jobs is unreasonable; there are simply many of them. Would you propose a modest increase, phase it in, or leave the rent alone for now? I also want to handle notice and any eventual deposit issues correctly under local rules without damaging the relationship.
 
There are two defensible approaches here: close the R$3,090 monthly gap now, or protect a reliable tenancy by keeping the increase modest. I would lean toward retention until the R$15,570 comparison has been checked against genuinely similar apartments and the cost of vacancy, preparation and reletting has been estimated.

Once those figures are clear, propose an adjustment that still gives the tenant a reason to stay, possibly in stages if the lease and local requirements allow it. Their record of paying R$12,480 reliably has a real financial value. Keep the maintenance schedule separate so necessary work is not presented as conditional on accepting the new rent.
 
Is R$15,570 based only on advertised apartments, or on genuinely comparable units in the same condition and building? Asking rent is not necessarily the rent eventually agreed.

Also check the current lease wording: term, adjustment mechanism, timing and required notice all matter in Brazil. Those details should be confirmed locally before sending a figure. I’d also separate overdue maintenance from the rent negotiation so the tenant does not feel repairs depend on accepting an increase.
 
I agree about checking the comparables, but I would not let “good tenant” become a reason to freeze the rent indefinitely. A large gap becomes harder to address later. A phased proposal could be fair: explain the market evidence, acknowledge the tenant’s record and invite a counterproposal. At the same time, give them an actual schedule for the maintenance rather than a vague promise.
 
The maintenance history may decide how the conversation lands. If requests have accumulated, opening with the maximum market figure could feel one-sided even if the number is defensible.

Put the proposal in writing with the proposed amount, effective date and maintenance plan, while following whatever notice the lease and local rules require. If turnover does happen, document condition and handle the deposit separately under the contract and applicable requirements rather than informally treating it as the last rent or a general refurbishment fund.
 
A useful calculation would compare three scenarios: no increase, a retention-focused increase, and reletting at R$15,570. For the reletting case, deduct expected vacancy, preparation work and other turnover expenses instead of assuming the asking figure arrives immediately.

My caveat to Lara’s phased approach is that a future step should not be promised before confirming the lease permits the timing and method. But the overall direction makes sense: clear maintenance dates, a supported but moderate proposal, and room for the tenant to respond.
 
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