I would not let more time lapse.

In the contracts I write, I typically require that the buyer make the seller "lienholder" so that they will be notified if insurance lapses.

There's little time for cleaning and general turnover, but it also ensures no lapse in rental income.

It's also much higher risk since you have to go thru foreclosure proceedings in a not-so-landlord-friendly state if the owner defaults or disappears one month leaving you holding the asset that may or may not be vandalized, have back taxes owed, let insurance lapse, etc., etc. 

I briefly had a real estate license about 7 years ago because I was trying to help my dad get his real estate career going; but, I let it lapse because I didn't see a future in real estate for myself.  

You would need to buy out the remainder of the existing lease :sigh:OR, just be patient and let it lapse and give 60-prior notice of non-renewal.

I let my license lapse the first time so I did the online course the 2nd time.

You can hold the whole deposit until the lease lapses and deal with it then. 

The forums are filled with stories of landlords, desperate for a tenant, who let their screening process lapse and allowed unqualified people to move in. 

If they choose not to take up the Option or let it lapse, then it's just a Lease.I find it interesting that for private individuals, "rent to own is described or mentioned as a predatory type transaction", but when Banks lend under EXACTLY the same contractual arrangements, it's called: "conventional mortgage".I reckon many owners don't know the difference between the concept of offering their homes for sale using the words "Rent-to-own" (which might land them in jail), vs the words "Lease to Own" (but that hand-written sign outside the house in Youngstown didn't use the word "Option"), vs the words "Seller Financing available" or "Buy with Lease Option".