It is occupied and undergoing rehab.

3 of the 4 units are currently occupied so my main concern is what is the best approach with informing the tenants their units are about to undergo rehab, the rents will increase upon renewal, and the utilities will be transferred into their names?

Is there anything that I can do other than tell him that she must undergo the same application and screening process as any other potential tenant, and since she does not qualify she will not be permitted a lease agreement? 

@Caleb Brown it is a 7 unit multi-family building. 2 units currently vacant (one undergoing renovation and one that just went vacant a month ago).

Are we talking Riverhead that's undergoing a sizable revitalization?  

On one of the homes we sold the Zillow guide was over our ask, and in the other case way way under-go figure!

I now have to do some more research in the area but I am guessing that an Indianapolis winter will severely cut into the expected $650 rent for that unit (cut ROI from 16.6% to 13%).I have two other properties, in other areas, and there is a constant conversations with the property manager when the unit is transitioning to a new tenant or undergoing maintenance (the rest of the year there is zero need for interaction, other than monthly statements).I also received update pictures of the units and I am impressed with the interior rehab.  

There are a few properties that I have in mind, one being a large multifamily unit that would have to undergo a major renovation process not to mention a major funding, and a few single family homes and need some TLC.

We have two investments that are both undergoing extensive renovations and will be ripe for a refi in the next 12-18 months if rates come down.Jose - When your lease is coming up, you should ask @Kyle Swengel about mid-term rentals.

The complex has 2 and 3 bed unit and we are currently undergoing the value add process.