In pricing your property a combination of different methods to reach fair market value is used.
Software that creates a median price based on historical rental data in the area as a base line, a comparative market analysis where market data and past rental prices are analyzed to see what a property's true value is, as well as taking into account items such as increase in owner expenses whether they be taxes, interest rates, utility costs, repairs, or if applicable, association fees.
While we understand a notice to increase rent for renewal may not always be the most pleasant to read, it's also not an easy email for us to deliver as well.
Fundamentally, an owner must keep in line with what makes the most sense financially and is competitive in the market.
As expenses to operate a property increase, rents have to adjust to allow the property to continue functioning as a rental.
While we wish all rents could forever remain the same, it is impossible as other costs to own the property do not; taxes, utilities, insurance and repair costs rise year after year.
Every owners' situation is different in regards to operating costs and every property has its own set of variables outside of market data that contributes to adjustments in rent.
In most situations it is unlikely to negotiate the rent increase as the owner of your property has already factored in the above.