When do you choose to end a Month or Month?

[John Williams]

I'm curious what you would do in this situation. I have a tenant with a lease that converts to a month to month on July 1st. For the last 12 months, the tenant has paid on time 9 times. They have paid late fees and were very upfront on knowing they would be late the other 3 months. They have never been late in back to back months. Rents have exploded in the area. If I went for a tenant turn, I could add $300 to the rent and still be below the live listings for comps in the area. They just reported that they will be late this month. My concern is the planned payment date is one pay period from the next payment due date. I'm worried it will be more problematic now. The tenant has an essential job in healthcare and Covid has not been a problem. I was planning on doing  a binder method to the tenant and getting a raise in rent locked in. Now, I'm not confident they can pay the current rate consistently, much less a market rate. So at what point is the cost of a tenant turn < occasional late rent? Options - 1. Stay at current rent and tenant. 2. Binder method with current tenant. 3. 30 Day notice to end lease and find tenant that can afford market rates.