If you do neither, are you implying that the third option would just be to tell would-be tennants to go look elsewhere because your neighborhood is full and you

If you do neither, are you implying that the third option would just be to tell would-be tennants to go look elsewhere because your neighborhood is full and you're not going to price out the people currently living there? Sounds like it would work, until you realize most of the buildings are owned by landlords who want to cash in and get as much money as they can with the property they've invested in. They don't particularly care who is living in the property, just that somebody is there and that they're getting paid.