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Disagreement between spouses about how to deal with tennant

My husband and I disagree about how to deal with one of our rentals.  The tennant has been living there for a year now and has paid on time maybe a handful of times.  She never pays past the "late fee" date, but it's a struggle every month to get our payment.  She has had us over a few times to "fix" minor issues that werent there when they rented (for example, a new screen door that was clawed by an animal, which was perfectly intact when they signed the lease). We are also having issues with them signing a renewal contract.  The original contract had her and her parents on it.  Now she would like to take her parents off the contract and add her husband (who has now moved in with his daughter, exceeding the number of people allowed to live there according to the old lease). We were fine with this as long as he provided proof of employment.  That was two weeks ago and thier lease was offically up on the 1st of May.   I think we should hand deliver the renewal notice, with parents on it, and give them a deadline to get it signed or to get out.  My husband thinks I am a militaristic nazi and should back off.  I am concerned that they are living in our house without a lease and that we would be legally responsible if anything happens while they are there.  I also think we should be a little bit more proactive about getting the rent on time!  We never say anything about it and always accept her excuses.    Any advice would be greatly appreciated!
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Allyson you are 100% correct that you need to be proactive with tenants, and to protect yourself, because tenants will push the boundaries and see what they can get away with.  If you don't think they're good tenants, I wouldn't renew their lease agreement, just send them a 30 day notice that their lease is not being renewed and they must vacate.  Otherwise, make sure you sign a comprehensive lease agreement with them, preferably with only a 5 day grace period for rent, so if they pay after the 5th you can charge them a late rent fee.
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