If they didn't even offer to pay it back, then I wouldn't renew their lease when the time comes. 

I have non-renewed in the past but with all the changes in laws I thought I would reach out to the community and see if somebody can advise on any gotchas or procedural steps I must take to non-renew my current tenant and stay out of trouble.Thanks.

It's wise to take into account market research and any upgrades or additional benefits for the tenant.Determining when to raise the rent is influenced by various factors such as lease renewal dates, local market conditions, tenant satisfaction, and lease agreements.

Can one choose NOT to renew it under these new rules?

I understand if tenant doesn’t renew there will be some maintenance when vacant.

The first step when asking a tenant to vacate is to post a non-renewal notice.

The note balloons in 7 years and the owner may renew.

What I have done in this situation is I acquired the property and then had the individual sign a long term renewable lease and the cost was $1/yr + the costs of insurance and taxes. 

What impact will it have on them renewing their lease?

When we have options to renew in leases we generally use the language "market value" so there is also that option.