How to inform tenant lease will not be renewed

[Josh Darley]

BP,

We have tenants paying about $400-500 under market value that we do not want to renew lease with in December.  They have only been in the home for 18 months but are constantly late with rent.  Each month the excuse is something COVID related, but at this point we are feeling taken advantage of.  We never charged them late fees or started the eviction process as we truly felt bad for them and they were telling the truth, and they were always able to catch up eventually.  Today we were told again that they'd be $400 short on the rent, and she's in the middle of finding a second job, short on work hours because of COVID, the list goes on.  We are willing to deal with it for now, but we definitely do not want to renew the lease in December for these reasons, not to mention we'd like to catch up to market rent.  This was the first and only two year lease we've ever signed and will not be doing it again.  We feel a little bad because they won't be able to find as nice of a home with current rental market, but at this point it is effecting our finances.  We were thinking of telling them now that we won't be renewing, and they should start looking for a new place.  What is the downside to this?  Any other advice?

thanks!