New landlord - Current tenant has a Pitbull, best way to proceed

[Ricardo Murph II]

Just closed on a Duplex in Cleveland Ohio. When setting up insurance with a broker the company with the best rates does no allow for pitbulls. Well my tenant has a pit and two chihuahuas. He is on month to month paying undermarket rent. He has been there for 4 years. The upstairs unit is vacant. I was hoping to keep him around until I get the upstairs rented which could take a couple months since it needs some work. I was then going to put him on a lease if he wanted to pay market rent and pet rent. Or allow him to move out. The insurance broker say the dog has to be out in 30 days. The insurance premium for the plan that doesn't have any dog exclusions is an extra $1000 per year. What is the best way to approach this? I am not ready for a new lease where I raise rent $150 because the tenant might move and leave me 100% vacant. Should I look for more insurance and not share so much info this time? Should I just ask him for get rid of his dog without taking about a new lease? Should I just bring a new lease to him with market rent that includes no pitbulls and $25 per month pet fee per little dog?