Failure to provide a 1099 if you had the requirement to do so may result in penalties.

You can increase the rate or pay extra cost to reduce prepayment penalty @Dave Aheimer

Prepayment penalties can be costly.Cure the property of deferred maintenance and perhaps add some value that may pay you back in rent.Include debt service, taxes, insurance, capex, and ultimately, with a certain caliber of tenant, some turnover and repairs beyond those you are accounting for.

The key to remember is there is no penalty for starting and not completing a 1031 exchange. 

Lenders who have rates under 7 may have a different pre-payment penalty structure.

Check your contract with the property manager for any small print and things you need to be aware of (like you are one year into a two year contract scenario)I didn't have any penalties in my contract so I sent him notice in writing, stopped by the office, and picked up my keys to the unit. 

Refinancing to pull cash out may or may not make sense (or even be possible) depending on how much you still owe, interest rate, pre-payment penalty etc.

If you sign up for a 30-yr loan and want to exit in 10-years, you have to pay penalty/defeasance.

Inspections and a lease that includes a hefty animal deposit, monthly pet rent, and upon discovery of a non approved animal will result in the deposit, a penalty equal to the deposit, and monthly rent to the beginning of the lease for the pet.

I would notify them immediately and give them the option of terminating and moving out between now and lease termination with no penalty as long as they provide at least two weeks notice.