New Single Family Rental Dilemma - Tenant on a month to month

[Todd Sortor]

Purchased a new single family rental 3B\2B in North Texas.  The tenant is currently on a month to month lease and their family has been renting the property for the last 8 years.  Here is the dilemma - They are paying WAY below market rents as the old owner never increased rent for the past 8 years.  Currently paying $1200\month but market is between $1750\$1800 per month.  They have improved the property over the years with paint, flooring, fixtures, etc.. and have been a solid tenant.  

Thoughts on whether to give them a discounted increase for 12 months or push for full market rates out the gate.  All-in expenses are $1360\month.  New to BP - Thanks in advance.