If you block them, then you may trap moisture down there, and allow an environment for mold to grow.

A newbie would like the leases because it gives them peace of mind.

At only $525/month rent, and he has six (6) vacancies in this rent-controlled environment?

I suspect that given Washington's current real estate environment, it wont take you long to have the 21-22% equity position to get rid of the MI.

He'd be much less likely to leave the place peacefully, clean, and without further damages.Don't proceed without understanding the landlord-tenant laws for your jurisdiction.

In tropical environments like Florida, from what I've read, we have a very conducive climate for multiple species of termites.

Yes, it's expansive but it gives me great peace of mind. 

I needed a classroom environment.

They can complain to the city if they think taxes are going up too fast.More importantly, if the tenants have a spotless record and the unit is visibly well cared for, the peace of mind of keeping a good tenant is place is worth a fair discount in my opinion.If you are a long term "buy and hold", I wouldn't worry too much about getting the rent to market right away.

I think this is something that a lot of experienced RE investors are increasingly looking at doing given the current market highs and low interest rate environment.