Both Tenants Want To Renew Without Roommate-What Would You Do?

[Tom Gray]

Lease is up at end of April and I sent renewal letter. Tenant #1 initially found the house and did not qualify on her own based on income, Tenant #2 qualified on her own and they both signed a 1 year lease. The living arrangements have not worked out and both stated they would like to stay in the house. Tenant #1 has not kept steady employment and needed help from tenant #2 for rent and other living expenses. Tenant #2 would like to resign a lease with her and her boyfriend that would also qualify for screening standards of income, credit, etc. 

I know this is a very delicate situation and wanted some feedback on how other property managers might handle renewal. The best options I came up with so far are 1. Terminate their current lease and resign a new one with tenant #2 and boyfriend. 2. Terminate the lease and find new tenants.

What would you do? Thanks in advance.