Currently, I'm trying to have patience and resist the urge to immediately take action because sometimes you have to wait (vacancy).There are a few things I would like to clear up.

I am a big believer in creating situations where you can succeed with the least amount of resistance and starting off a relationship where you show the tenant that you are protecting them and you can be very beneficial towards keeping a tenant for a longer period of time.

Which may be an initial phone call (so she understands your tone ) and then follow up with a letter with a gift card.Now if they put up some resistance with your request, how would you move forward?

Sorry, but I couldn't resist...

Drywall everything above that with a no mold ,water resistant sheetrock and paint it with a couple good coats or three of good enamel paint to keep moisture away.Best part of a demo to the studs is you can replace wiring,drain plumbing ect as well as upgrade to a modern light/vent that is ducted all the way outside and insulated to prevent condense inside.

We were planning to paint the firebox with a fire resistant black paint.As for the awning, it is not a must have with the PA weather, but makes it a nice to have feature.

We sucked the water out, put huge dehumidifiers in and fans and cleaned the carpet ( our carpet guy told us that carpet can be cleaned but he was wrong but not before charging us $400. for the cleaning- our mistake) In the meantime tenant was pissed because the carpet smelled and according to her there was mold which there wasn't  (she is a drama queen) but with all that said we ended up pulling the carpet out and redid the whole basement with vinyl water resistant tiles.

It's not waterproof of course, but since water seeks the path of least resistance, keeping it in plain sight (i.e., on the finished floor) increases its chance of being wiped-up or evaporating.  

Anything on it that increases resistance for it's operation function will wear it out faster.As for not have tenants with pets or smoking we all say that's the goal.

I would also remove the mirrors as that ages the room too.Id be tempted to paint the fireplace, but its probably best to resist that urge since you cant go backwards on that.