Lease states no pets, but showed up with pets

[Stephen Meche]

I have 2 rental properties that are run by a property manager.  The first one I purchased in April and the second one in June.  Currently they both have tenants.  On the lease, it states clearly that the tenant can not live on the property with pets.  I found out from a neighbor recently that my first house has pets and went to my newest property today to find out that they have both cats and dogs.  So i am 2 for 2 on pets when the least says no pets.  I am not 100% against pets so i am willing to negotiate with the tenant.  Has anyone ever been in this situation and if so what did you do?  Is it worth evicting the tenant because of this?  Do i need to redo the tenant agreement to get a deposit or raise rents?