Did taxes and insurance really go up so much? How much money towards appliances are you spending on your tenant. As for landscaping, lol. Go raise the rent $400 a month, but don’t think you’re a mensch too.
Eta: according to you a $5k gift does make sense?
That’s what פשרה is about. It’s not fair to ask the landlord to leave 10k on the table. It’s not menchlach to raise the tenant by that sum all at once. Try to meet somewhere in the middle. I’m assuming that where that Rav came up with his suggestion.
I’m not advocating either way, just laying out the צד. For those who haven’t raised in three or four years, costs have indeed gone up. If one’s basement rental was originally covering the homes taxes and insurance as well as maintenance on the rental, that is likely no longer the case today.