Rent increase versus tenant retention for Lisbon student housing (€1,191,000)

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The choice seems to be between moving closer to the advertised market level and keeping a tenant whose payment record and care of the property are already known. This Lisbon student property is valued around €1,191,000; comparable listings suggest roughly €4,653, while the tenant currently pays about €4,004 reliably.

I favour a limited increase, although that depends on whether those listings are genuinely comparable and how long a replacement letting might take. Vacancy, preparation work and uncertain payment performance could erase the extra rent. How would you approach the review fairly while checking the applicable Portuguese notice and rent requirements? I also want to account properly for maintenance history and deposit handling rather than looking only at the headline difference.

 

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I would not treat €4,653 as achievable rent until you know the comparables are genuinely similar and actually letting, rather than merely advertised. A reliable tenant already has measurable value.

First calculate how many months of the proposed increase would be lost to even a short vacancy plus preparation costs. Then check the tenancy terms and current Portuguese rules before discussing timing. Is this one household leasing the whole property, or are student rooms let separately? That could materially change the turnover risk and how you approach the conversation.