If they don't go for it for some reason, raise the rent at lease renewal but offer the increase as a discount for online payments.

Same thing with the lease renewal.

Section 8 had a deadline that if the things at the unit were not fixed by a certain day, then they wouldn't renew. 

Common fees will include a set-up fee, leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more.

Feel free to tell her that you will not provide any info to the lender until certain conditions are met (signing new lease with background check, signing confirmation of non-renewal, etc).

Once that new renter gets their renewal letter, their rent will increase, sparking move-outs and more renters to capture at other lower priced locations.

he can give them notice of non-renewal.

Rent the home on a 1-year lease, not renew the tenant, and sell the vacated home next year (market rent is almost the same as our current PITI, so should be close to break even).3.

They left, did not renew.  

If he's not you likely could issue a non-renewal but I'm not sure of the logistics of serving (mailing) it when you know the tenant is in prison.