Lender requires me to decrease term on tenant lease

[Travis Campbell]

Hello! 

I'm in need of assistance about how to approach one of my tenants about reducing the term on their lease from 5 years to 2.5 years. I'm in the refinance stage of a BRRR and my lender for the 30 yr loan cannot accept a property with a lease that is longer than 3 years. This is due to foreclosure risk and the lender being stuck in a long lease, which I understand.

The tenant moved in July 1, 2020 and has been very good so far. She is prompt to communicate any maintenance issues (roof leak, which didn't catch during rehab as it didn't rain) and the kicker is that they have already paid rent through November. The tenant prefers to stay a few months ahead in rent, which was very refreshing to hear. Recently she did mention that the size of the bathroom vanity is too large, so I'm thinking about using that as a bargaining chip to amend the lease term.

Any advice on how to tactfully approach the tenant? I don't want to ruffle any feathers as she obviously signed a 5-year lease for the security of not having to move in the short term, and my decrease to the term would add risk there.

Thank you.