Landlords what would you do?

[Andrew D.]

I have never dealt with this particular situation and welcome input from other landlords.  My New Years resolution is to stay on top of tenants lease end date and enforce signing new leases as opposed to going month to month.  Also to avoid vacancies I've set up Facebook page to advertise upcoming vacancies.   I apologize in advance for being long winded and I'll try not to be to confusing!

I have a tenant who's lease is up March 31st.  Let's call this Property A.  They've been with me a few years, pay on time and keeps the place up nice.  At the beginning of January they inform me that household income has decreased and they won't be able to afford that particular property anymore and would like to know if I would have anything available April 1 in their new price range.  I'm glad to hear that they would like to continue renting from me so I check into what I might have coming available in the lower price range and also proactively begin marketing there current house knowing they will not be renewing their lease.

I then find a property of mine that meets their budget and criteria.  It's property B.  It's a tenant I've had a few years.  Back when I started out I allowed tenants to go month to month after the first year.  I've since shied away from that.  Late last year this tenant had said he's planning on moving to another location sometime after winter 2016.  I contacted him last week and he said he wasn't planning on moving till August.  I told him that m to m had to be mutually beneficial as I have a much better chance to re rent in the spring than fall in my market.  He understands and would like to talk again the beginning of March.  He's engaged and fiance is in Afghanistan till mid March then they want to buy a house together.

In the mean time I have secured another tenant to rent Property A.  They love the place and plan to be in by April 1st and pass the screening with flying colors and intend to rent several years until their credit is on track to buy.  Hooray no vacancies!

Now of course as much as I'd love to you just can't make everyone happy.  I call the tenants at property A.  I tell them that unfortunately I don't have anything available in their price point available in that time frame and basically wish them good luck.  They've seen my website/ Facebook page outlining upcoming available houses and have seen property B as coming soon.  They've driven by it and seen all the pictures and are in love with it.  It's perfect and they'd be willing to stay in property A a few more months to wait until Property B is available.  They have concerns that the 2 dogs they have will make it difficult to find a new property and have had problems with previous landlords and want to keep me as their landlord because I am great!

Now this creates a small dilemma.  I have a couple of options here.  Property A is a high dollar rental in my market and takes a little longer to find qualified tenants for.  Since I have found a tenant already I feel as though I need to act on it and get a lease signed with prospective new tenants.  With it being mid January I could easily give notice to tenant in property B that I need him out March 31st.  I already know that he will not be renting from me again but has been great and very accommodating as a tenant and a hate to kick good tenants out.  If I don't due that however I risk losing the tenants in property A that due to other barriers could be great long term tenants.

I'm torn and unsure if I should think with business sense or my heart.  What would you do?