I would not tempt him that much to raise rents. Considering that he is charging 2K and could get 2.5K. At 2.5 the renter could afford an average home here and no longer become a renter. At those prices its difficult to raise quickly because the renter that could afford the rent can also afford to buy or rent somewhere else. Its best to check and compare amenities and services first with other places and raise accordingly for those. On the other hand finding good tenants may be worth giving a slight discount. Its good advice to have in the lease that the should expect rent to rise annually but is limited by something and to give a good lead time on when the rent will be raised 3-6 months seems good enough for most.