To renew or not to renew... that is the question

[Bryan Petrinec]

I expect to close on a duplex in the next couple of weeks and one of the tenants has 2 dogs.  On their current lease, they filled out the pet addendum and paid an additional deposit.  The pet addendum has the breeds as "Albino" and "Dalmatian Mix".   Although the one might be a mix, I didn't know albino was a breed.  Both are pit bulls or bit bull mix.  I have met both dogs on the inspection and they are friendly.  I personally don't have a problem with dogs or renting to tenants with dogs but my limit is 35 lbs or less.  Both are 60ish lbs and did I mention they were pit bulls. 

Since the previous owner / property manager, allowed them under their current lease, and they have been there coming up on 2 years and have always been on time with rent. I don't see any grounds to get rid of them now, but their lease is up for renewal in Feb.  At which time I will move them over to my lease.  Now for the questions:

1. I prefer good history with tenants, as this is a business relationship.  Should I allow them to renew if they intend to stay and make a 1 time amendment to my pet addendum to allow these larger dogs? At this point I do not know if they plan to renew.  I am not a dog enthusiast, so if they are mixes, I have no way to prove one way or another outside of their looks.

2. If I decide that I will not be renewing the lease, even if they want to, what is the process in Texas.  Is it just the 30 day notice that is in the lease or is there more?  Do I need to give a reason?  If so, it the 35lb limit on pets sufficient?  

I am reaching out to the BP community to provide some advise.  One of my biggest drivers for being in this quandary is that the reason I am buying this duplex is that it needs some work and can will be able to raise rents but I was hoping to let the renters phase out on their own which will allow me more time to generate cash to be used on the rehab.  This unit will probably be off market for 4-6 weeks before I can get it rent ready and they are currently the top rent payer in my small portfolio.  

Thanks in advance