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Your call. Sure, you run the risk of the tenant moving, but if the rental market is tight and you get a new tenant quickly (paying an extra $10), it's worth it. Long term, it makes more sense to rent at least close to the market rent. You need tenants, sure, but not these particular tenants...

It's called 'making YOU more money'. I also describe it as the sign of a good agent. If you only want to increase the rent by $10, tell them. Remember, if the agent raises the rent too high, and you get vacancies, they lose out too. What's made you so suspicious of the agent? Let's say...