Renew or not renew? HAP tenant, been in the apt for 20+ years.

[Mike Adams]

So we have an old 3 unit building in Stamford which we've been updating where we can. The roof and siding has been updated, windows, doors, etc.  One of the HAP tenants moved out, so we are redoing the whole apartment. Nothing is staying as it's all old and outdated or in bad condition. Prob. investing around 20k in the apt.  It's a 3 bedroom / 1 bathroom, which should fetch around 3.6k - 4.0k for rent.  Now, the 1st floor is the same as this unit, but she's only paying 2500.00 and we're also covering the utilities. To add insult to injury, the original owner of the building has a HAP for a 2 bedroom unit when it's a 3 bedroom unit; and there's no way to change that aside from non-renewal. We can only request market rate for a 2 bedroom, so unless we throw them out, a daughter in her late 20's and her mom who's in her 80's or 90's, we have no other options.

I hate to be guided 100% by money, but the inspections are crazy, hate having to cover the utility bills and the unit is also trashed, so it needs a remodel as well should we have to turn it over.

What would you guys do?