4) What is the normal procedure for this, do we need to contact the State or will correct itself?

If you posted them with the correct payment procedures and they did not follow them, then they are considered late.

That business in order to survive must have policies and procedures written down and documented.

Eventually, you will get the tenants out if proper procedure is followed.

You are not evicting you are simply initiating the appropriate procedure to protect yourself.Follow your state guidelines regarding process.

Every state's laws and procedures are unique.

Can I just do it or is there a legal procedure?

In CA, things are particularly tenant friendly, and details about required move in and move out procedures are, as you know, very specific; here, it appears to be exactly the opposite.I don't remember details offhand of what the laws said, but I was really stunned to find out how little protection renters actually have here when I researched it to find out if certain provisions in my lease could possibly be legal before signing it, because there is no way they would be in CA.  

What's the procedure?

I mean, yeesh, just the man hours for someone to write the manual on the new procedures for all of this will take up countless hours and meeting after meeting.What a nightmare.And the really stupid thing, is that there are already laws in place to deal with slum landlords.