If you enjoy charity, charge the tenant full rate and then donate $1,200 to people that really need it.I also don't believe in incremental increases.

With all due respect, saying you’re currently getting “far under market rent because the tenant has been there for a long time” shows that you’re not managing your rental like an investor but running a nice charity for your tenant.

I can donate to charities or even make my own and invest my own time into it free of salary to help others to have a good life.

@Nikki Taylor are you trying to run a profitable business or a charity?

I am sure it is not easy for the op to have to evict someone in this condition but this is a business, not a charity. 

But when you over-extend charity in this business you will get taken advantage of.

If you feel so altruistic to invest $60k for no return I can think of many good charities where the money would be more beneficial.  

@Charity Johns You should be able to use the LREC contract for your subject-to. 

Giving is wonderful and to be commended but do it through a charity or to where people need help. 

Are they mostly charity or faith-based groups that offer housing support or something different?