You don't have to keep those tenants in for the long haul if you want to fix up the place a little and raise the rent and they don't want to pay more.If you two agree on a price you like, strike the deal.

Let me guess - you live in a municipality where they have a "three strikes" ordinance - three police incidents and you are no longer allowed to have a landlord license.

As for the ultimatum, it's noted I'll keep collecting rents for a few months to see if he 'strikes' again.  

I'm picturing an advertisement with you in a black Secret Service type suit, wearing dark shades, and striking a James Bond or Charlie's Angels type pose while holding one of those guns with the flags that says "BANG"....except of course yours would say:

You will need to hang your license under a more experienced broker for two years before you can strike out on your own, unless you are an attorney already.

They also get a flat fee every month for management, not a percentage of rent collected, so they make more money if they put bad tenants in my property, which strikes me as a huge conflict of interest.

You may be able to strike a deal with them, but given how good banks are about paying HOA back dues on properties, you have very little bargaining power.It also looks like there is a first and second mortgage on the property.

If it's a decent opportunity rarely found in your market, I'd be willing to pay a little to live somewhere like @Stephen Akindona points outWhen I do nothing but swing for the fences, I strike out a lot.

I wouldn't waste 3 minutes with a company that showed up late and smelled like beer (not sure if they had an office or not, but without one that would be another strike in my opinion).  

One lightening strike and the next fire is in your beautifully-treed backyard.Hope that helps everyone here a bit.