Additionally, I think the previous tenant may have allowed them to stay and now they don't want to leave their home.  

As of now I stay in San Diego and searching for a market where I can invest in small multifamily homes(non-commercial).

We just launched "Stay In Florida, LLC".

FB groups like wholesaling elite are great for assisting you and finding peers who are in the same boat......get as much info on your market as possible.....stay consistent....

First, if you are comfortable with the Auburn market, stay there.

I'm surprised they have any vacancy at all - in the other markets where I have these kinds of properties, we have 100% occupancy and a unit stays vacant for at MOST 2 months. 

But what about when a landlord files for eviction, and then the tenant pays the past due rent, either before the court date or at the court date, allowing them to stay and continue their tenancy.

Discounting their rent may encourage them to stay longer, but it may also encourage them to take advantage or you or treat your $1,500 rental like a $1,300 rental.

That's worth having a high-quality tenant and it should be worth it to them to avoid moving, paying more, or potentially winding up with a nasty Landlord.If there's even a chance they would cry over an increase, be prepared to show them comparables, the value of staying with you, and how much you are losing by keeping them at the lower rate.

Stay focused.