Incur $9-$11k expense to increase rent $130/month to $1250?

[Marco G.]

I have an inherited tenant lease that is expiring at the end of Feb. They were at market when I purchased, but property needs major rehab to re-lease. I estimate $9-$11k including make ready, lost rent, and lease fee. Whenever they leave I'll have to incur these costs. Do I increase rent (I have a reasonable expectation they will leave, as they've been struggling last few months per mgmt co/slightly late rent), or leave it the same until they leave? As a side note, I'm still trying to pay down non-mortgage acquisition debt, meaning I'd take on more debt to accomplish this. Rents moved up quite a bit in the past year where this unit is located, over 10%. What's the best decision here? Just typing it out and reading it has changed my mind.