@Geoffrey Morales  Good question, everyone is in the same boat...I just finished repositioning / leasing all vacant units in the latest acquisition and stage 2 was to increase exciting rents. 

This is a legal question that I am speaking of and not a moral one as I indicated above that I would pay north of 1/2 as I would hold the tenant responsible for the late notice(In this specific case the tenant admitted to a delay in notifying the owner). 

We make good cashflow off of the other 2 units on property so morally I don't feel the need to increase rent on a senior citizen. 

you should have posted your question on FB, ask for moral support from your FB friends.

It's not moral to just say "open it back up because... the economy". 

@Mario Morales I allow pets and have a pet waiver that I have tenants with pets sign when they move in.

We can't answer your moral dilemma, that is for you to decide.

Moral of the story, if your name is not on it, or you don't have proof that you reimbursed the cost, it won't be allowed.

True mailbox money.Not everything moral is legal and not everything legal is moral.

Moral of the story is, either someone at auction either buys your interest in the property whereby you get paid the reserve upto the total due under the lien or the property does not sell and it reverts to you as an property owner.