One of your properties neighborhoods starts to go downhill, what do you do?

[Jarred Sleeth]

Hey BP,

Just got back from visiting one of my properties, and spent an hour talking to the tenants about how they believe the neighborhood to be on the decline. Just before I arrived, there was a shooting right out front on the street corner. My tenant has been in multiple altercations with neighborhood kids, and they have also burned down a few vacant houses. There has been a convenience store that opened right in my backyard across the alley, and it seems to be creating a hotbed for unsavory characters right around my house. My tenants are unsure how long they'd like to stay, and are asking me to put them into another one of my properties. On the flip side, since I bought the place 2.5 years ago, values in this neighborhood seem to be on the rise. I even just put an offer in on another place a few blocks away on the nicer side of the neighborhood. 

I thought I would come here for some advice.  What would you do?  I could hold the property for a little longer, see if the neighborhood starts to calm down a bit. My tenants are staying for now, but they are on month to month to keep flexibility. I worry I might not get great tenants like them back in that area. 

Have you ever had a property neighborhood start to decline? Did it bounce back? What did you do? Did you make the right choice? I'd love to hear some stories. 

Thanks!