New purchase with entrenched property manager

[William Amiteye]

So we just purchased 11 units. There is a property manager on site who used to work for the previous owner. They made a side agreement where he, the property manager, is in one of the units and his rent is only $200. He was given a lease until 2025 at that $200 price. We don't like that one bit for the fact that the rent is too low and locked in for too long.
He also has his daughter in one of the other units. 
We don't mind keeping him but we are thinking of re doing his lease for one year, so he pays full market rent ($1000 per month) and we pay him a 'management fee' for the difference of his current rent and what the market rent is. This will be for 1 year while we assess whether to keep him long term or terminate him after the year depending on his performance.
By having him pay the full rent on paper, it will be good for the bank when we go to refinance.

Question for those with similar experience, is it ideal to keep a guy like this or is it better to start off anew or how will you restructure things?
Our concern is his connection to previous seller, him having his daughter in another unit and his really low rent AND him having his maintenance equipment on the property.
Thoughts or any additional questions you have before giving me your thoughts!