Well October is a good month, rental increases took effect again but I had a new twist from one tenant. I give them the usual speal about costs going up, a run down on the market assessment of the property they rent to show them they are still getting a good deal and then what their increase will be. I have been doing 5% increases about every 6-9 months and still falling behind so this go round I did 10% increases on most all of my units.

This guy's old rent was $1000. He just came off his first years lease and is now month-to-month so it's his first increase with me. Market rent as indicated in the letter sent a couple of months ago is $1300 but I increased his rent from $1000 to $1100. He paid $1300... Everyone else paid the correct amount so I don't think the wording of the letter was confusing.

What would you do in this situation?

Now that’s a dream tenant. (Grins) one that pays the market indicated rent of $1300 not the rent increase of $1100

Absolutely agree with Dave!! Treat him just the way you'd like to be treated if you made a $200 error in paying for something.

I had a tenant that for some reason over paid by a $100. I brought this to his attention. Next month he took the credit and paid the proper amount. The following month he paid the correct amount. He said he made that mistake with his old landlord and he discovered the error after six months and his previous landlord never said anything.

Honesty is always the best policy.