Take it for whatever it's worth, but most of the time as long as rent is being paid and they are not destroying the place I have found it is generally easiest to ride it out and get someone better next time. 

Jyst a nite, the “gifting the property to you” would have large tax consequences when you sell. 

Don't have her "gift" it to the kids. 

If you have $3 million worth of real estate, you really need to discuss with an attorney regarding asset protection and estate planning, and your CPA regarding tax efficiency (both income and gift/estate).This question doesn't lend itself well to polling the audience. 

Later that day I called the local restaurant, got a gift card, and then emailed the guest all the details of how to get it.There was no PM involved in any of this.   

If you don't have the 5% right now keep saving or have funds gifted to you by a family member..

@Brian KoonsCash for keys might be easiest.

Also don’t forget permitting as it is one of the easiest reason for denying fire insurance claim and to engage your liability.

The easiest cleanest structure is to offer him the opportunity as a private lender.

As a good faith offer for a good tenant that has been there for years I probably would have offered $200 of so in gift cards to local restaurants....... that's it.....Stuff in life happens that make our daily lives a PITA for a while and then it passes....deal with it.