Violent Tenant and Neighbor Conflict

[Amy E.]

I've had several complaints from neighbors about one of my rentals in GA, which has a Section 8 tenant.  The tenants pay rent on time and treat the property at the minimum acceptable level.  They punched a hole in a door, which they paid for.  They punched a hole in a wall, which they repaired themselves.  The house is filthy, but there's not junk/garbage lying around (it just needs a good scrub).  That said, I've had worse tenants and if these were the only issues I would not terminate the lease.

However, there have been three separate domestic violence incidents on the property in the last year, and arrests have been made. None of the people arrested are on my lease.  The last time it happened, the guy that got arrested made verbal threats to the neighbor, and now the neighbors are calling me because they are scared to go outside in their own neighborhood.  The neighbor claims tenant is smoking weed as well.  I've personally not witnessed anything negative with respect to the tenant.

I want to be a good landlord neighbor, but I want to be fair to the tenant, too.  They've damaged the property, but have fixed it.  They pay their rent.  That said, their lease expired in April and we are now month-to-month.  My lease states either party can terminate the lease during the month-to-month status with the appropriate notice.

Legally, I can terminate the lease (it'd be a hassle with Section 8, but it can be done) but I'm not sure if I actually should or not.  Turnover costs are a bit high in my area, which is another factor.   But I feel like the situation with the neighbor is only going to escalate and I had hoped to keep this property for another decade.  

I have not talked to the tenant yet.  Any tips or recommendations for how to proceed?