The discount on your unit – compared to the rest of the market – has fallen away. Your increase is based on the gap between the rent you were paying and the market rental for the unit you are in.  The percentage increase each year is to close this gap. The market rentals are based on the rents being charged for other comparable rental property in the area.  We understand that some people may not be able to cope with this change in one go.  We have gone to extraordinary lengths to reduce the impact on you by spreading the increase over several years in order to ease the burden on the tenant.