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Hi all,  So we just came back from doing a yearly inspection on our property.  We live about 6 hours away so this is the first time we've met them in person (did the whole lease signing via mail).  In the application they submitted, they notified us of 2 cats.  We signed the lease and included the 2 cats by name in the lease.  Since during our talks about the property we forgot to write out a non refundable pet fee, we decided to waive it since they had already sent in the security deposit check and the first month rent.  While inspecting the property, the tenant mentioned 3 cats as one was inside and two were sitting outside the house in the landscaping in the front yard. I didn't say anything during the inspection, as I wasn't sure exactly what to say and she obviously wasn't hiding the fact they had 3 cats instead of 2.  I have no idea when the 3rd cat was added either.  I was too tired from working on a fence issue at the end of the day to even process everything and ask any legitimate questions.  I was mainly checking to make sure the house was in good condition, the repairs we'd authorized had been done appropriately and there were no major problems.   I figure there are 3 options.  1.) We say nothing about the 3rd cat and just let it slide. 2.) We notify them of the issue with the 3rd cat, have them sign an addendum to add the 3rd cat and a non refundable pet fee since the cats are indoor/outdoor (which had not been disclosed).  3.)We write a letter to them and notify them that they are currently breaking the lease with an unauthorized pet and they need to rehome a pet to be back to the 2 pet limit set upon in the lease.   I'm unsure how 2 or 3 would play out, since both tenants are having a hard time financially apparently and we were told during our inspection the rent was probably going to be a week or two late, as one was trying to get a new business off the ground.  Of course, this set off red flags for me and I've had an uneasy feeling since we left the property.  I also don't know if legally I can retroactively request a NR pet fee, since the lease is already signed.   They've maintained the home, it's in good condition and they've made minor repairs to the property themselves when stuff broke, such as a kitchen cabinet door hinge coming off.  Some repairs they've done, such as when a shower leaked heavily or a toilet broke and over flowed, we've allowed them to do the work and deduct the cost of parts from rent as long as they sent the receipts with the rent check.  They're not bad tenants and where the house is located it is hard to find people to rent in the price range we're asking, so I'm not wanting to sour things where they start to not communicate with us.  On the other hand, I don't want to let too much slide and be too lenient and get taken advantage of.     Are the 3 options the only ones we have?  Or are the best ones?  Or is there a better option?

You can add an addendum and go through it all but if i feel they are good tenants I would let them slide. However, I'm a softy. If the tenants are reliable and handle all the business on their end its okay to cut a break here and there, right?