Hi all, I’ve had my first investment property for almost 12 months and have recently been contacted by my agent about lease renewal and a rental increase. She did a market evaluation and suggested a $10 a week increase, which I agreed on. That agent has since left the company and the new agent has just come back to me saying the tenant would like to renew but has questioned the $10 a week increase, saying this would make her hesitant to sign. (This is after having to chase her for an answer a month after she was supposed to get back to the agent). She’s a fantastic tenant and keeps the place immaculate - so I realise that, if I’m not desperate for the extra money, then it’s worth keeping a good tenant in place rather than lose her. On the other hand, am I setting myself up to be held ransom each year at renewal time if I give in and say she doesn’t need to pay more? I mean, that’s still $520 a year extra off my mortgage too (and rates did go up a couple of months ago). I’ve rented in Sydney and Melbourne, where annual rent increases of $80+ a month were regular, and this property is in Hobart so I didn’t think this was excessive. The agent has said the next step if she doesn’t sign is issuing a notice to evict, which means finding another tenant. I’m currently in the UK for an extended trip, so could do without the stress of trying to do that from afar. In saying that, if I am forced to find a new tenant, I could increase the rent a bit more (the main reason for doing so would be to find a high quality tenant, more than strict financial gain, as the place itself is in perfect, newly renovated condition and I want to keep it that way). Has anyone been in the same position and can offer advice? I guess my options are to stick to my guns, give in, or compromise - by going back with a $5 a week increase or putting a two year fixed lease on the table. As it’s my first time going through this, I’d appreciate any suggestions. Thanks in advance!