While the taxes are a cost that has to be figured in, the risk of total or significant loss to the owner is a big motivating factor.

Take a look at what’s called a heat-loss calculation.

You could if you charged them $125 month rent and then took the loss monthly as a write-off (check with your accountant or tax attorney).

First opportunity to raise rent is March 2021 with 2 units. 8 units expire May 31, 2021.T-12 NOI $51,558Expenses $41,282 (Taxes $18,012, Insurance $3,250, Water $7,100, Trash $4,620, M&R $5,228, Professional Fees $3,072, 6% vacancy loss $6,160)ProForma:Rents at $875NOI $56,000Expenses 44,820Your offer would be?

Im at a loss what to do because both tenants are contacting me and giving me two sides to the story.

You have a duty to mitigate losses and there is no way the court will believe you if for some reason you left it vacant and tried to collect rent all the way through claiming damages. 

We remodeled the bathroom, put a new roof, replaced the hot water heater, and bought a new refrigerator—so this year will be a loss, but we wanted to get the place to a good spot so we didn't have much to worry about.

Also, do you have any other capital losses or gains?

They want to minimize losses and risks with loans as much as possible.

Can you absorb the loss of revenue while that occurs?