You are heading into a busy season, so if you are priced at or near similar rents, then may be worth waiting longer as market is just getting stronger. 

I've encountered several situations where tenants not only broke their lease but also caused damages, sometimes even leaving before the lease ended with damages behind.To clarify, when I mention damages, I'm not talking about normal wear and tear but rather significant repairs costing between $5,000 to $8,000, which don't qualify as vandalism for insurance purposes.In the past, property managers I've spoken to have often discouraged pursuing tenants for these damages, citing it as not worth the effort.Here are my questions for you:- Would you pursue the tenant?

Is it worth paying the penalty?

Maybe that will be an excellent way to increase the overall occupancy.Still, I think you are doing quite well!

However I also think spending a few bucks to help mitigate that risk is worth it to me.

Could anyone say with a straight face that he only owes capital gains tax on just the one dollar increase in value between days 999 and 1,000?

It will increase the housing shortage. 

Socially and environmentally conscious investors are increasingly looking beyond just financial returns.

Are you interested in increasing the value of the property through rehab?

The projected appreciation is tough to assign a value to, but 3% is a good conservative number, then it just depends on how much the property is worth.