Dundee rents could rise by as much as £72 a year to pay for future investment in housing.
The city council has unveiled proposals for an average weekly increase of 1%-2% from January.
Last January Dundee rents rose 2.5% to bankroll new council house building and energy efficiency measures.
Members of the council’s housing committee will be asked to approve discussions with tenants on annual increases as well as moving to a payment period of 52 weeks from 48 at a meeting on Monday October 26.
John Alexander, convener of Dundee City Council’s housing committee, said he believes the council is delivering value for money to its tenants.
“The options we are presenting to tenants give them the chance to make an informed choice between increases as each offers a different level of future investment in our housing stock,” he said. “Despite these options including the lowest proposed increase since 1973, we are still able to raise the bar by looking to support tenants who are suffering because of welfare benefits changes and invest more money in building modern, fuel efficient council houses.
“For a third successive year some charges, such as the communal cleaning and lock-up rental charges, are frozen.
“Tenants know why we are proposing the three options and exactly what they and the city’s council housing stock are getting for their money.”
As in previous years, the consultation will include a number of community events, discussions with registered tenants organisations and information on the council’s website and in council offices.
While tenants will pay the same rent, they will be asked to move to paying over 52 weeks instead of 48 in order to fall into line with the payment regime for Universal Credit, due to be introduced later this year.
Mr Alexander said: “Because Universal Credit will be paid monthly instead of weekly as at present, for people receiving benefits it makes household budgeting easier and will lead to less people falling into rent arrears if we standardise the payments over 52 weeks.”