But I haven't personally done that or spoke to my attorney about it and since you are definitely in that space I'll have to take your word on it.

It's not true to the materials, it's inappropriate to the space, and... it just looks stupid.  

We keep them well maintained and tidy with the idea that good tenants want updated, clean spaces and are willing to pay a bit extra for them.Do I let him stay, at least another year until all the other units are turned, or does he need to move on?  

The house is a 3 family that will be gutted to the studs and rebuilt with beautiful finishes for a modern/contemporary look.  

Commercial space usually takes longer to rent so you should definitely weight that into your decision.

These are the top things we change:Add a bathroom if you can near existing plumbing. i.e. add a Master Bath if a wall is shared with the hall bath.Update the kitchen: cabinets, fixtures, appliancesUpdate bathrooms: cabinets, tile, toilet, bathtub/shower if neededPut in pergo or wood floorspaint everything inside and outchange any non-modern light fixtures and fans.Don't pick fancy and expensive stuff - you start to get into personal tastes.

The issue is there is water leaking through the walls into living space. 

Exactly what type of space does this project consist of, and what will you be doing with it, demolition and building, remodeling, adding space, changing use, or ?

I have my own inventory of furniture and accessories that I use for vacant spaces.

I own two townhouses in developments with HOAs, but those associations only cover common areas such as landscaping, parking spaces, etc.