Hm, new tenant or keep current tenant?

this is sensible advice. exactly what I would do

 

Looking from both sides..

I somewhat agree with @Xenia to do bare minimum for lease renewal, and do big stuff when the property is going to be vacant anyway.

However, if you're talking about doing a $25-$30pw rent increase, without doing anything, chances are your tenant is going to leave anyway.

Also what's to say the tenant won't vacate anyway if you agree to do it? Being hit with a $30pw increase would normally ruffle some feathers.

If it were me, I would do one of the below. Sign lease for at least 12 months, at market rent and do carpets, leave as is and increase rent to just under market to keep current tenant, or increase to market and see what happens.

 

If the carpets need replacing, I recommend replacing them with tenants in place and lock in another 12 months lease. The tenants would feel highly valued which in turn promotes a reciprocal win-win outcome for all parties

 

@Lil Skater the current increase is $20 so not on the top range. I'd replace the carpet mentioned - just emailed PM this afternoon that for assurance that fixed term lease will be signed.