Costs around the same as filing for an LLC, doing the annual renewal, and filing LLC taxes. 

Make sure the rents they are advertising are rents that could be had without a long vacancy period when it comes time to renew the lease.

The tenants have expressed to me they would like to stay but I am debating not renewing with them because their unit is completely carpet and I would like to change it to all tile like my side as well as do some other renovations to add value so I can refinance, get some cash and buy another rental. 

Some thoughts .. 1- Perhaps 6 month leases with inspections prior to renewal.2- pet Insurance to protect against property damage?

They then either fully fund it in a year, or, they have to come up with new non-refundable deposits if they wish to renew their Option/s, or, they forfeit those past deposits anyway.As for ongoing lease payments, they don't actually have to be any more than normal lease rates, right? 

@Adam Rey I have two tenants right now that each pre-paid a year's worth of rent at lease renewal.

Some need to be involved in all aspects from tenant selection, to maintenance, to renewals, to move outs. 

Host must also notify the neighbours and apply for a special licence and renew it every year.

It also puts the next lease renewal in the summer when you can get higher rents in the future.2.

They had just signed a renewal and started complaining again.