Advice needed...pets in a "no pet" lease agreement

[Sarah Shawver]

I could use some advice.  Tenant 7 months into a year lease moved in a cat. Lease is very clear about no pets.  Quit or cure notice has been sent, but tenant is really pushing back about wanting to keep the cat (offered additional rent, additional deposit, complaining etc...).  We've had bad experiences in the past with cats and are getting ready to rent the second unit in this building and really want to keep it all pet free.  

I wouldn't mind agreeing to a cash for keys situation to avoid us having to go through the eviction process.  Thoughts?

Should we just over look this for the next 5 months and not renew?  If so, how do we regain any respect if we go back on our quit or cure notice?

Thanks