Their lease will end in July, I have been debating about renewing. 

The current PITI is $3000/month which is $1000 lower than rent.Right now we are debating whether we sell our home or if we rent it out for some passive income.Here are additional info:We understand the pros & cons of landlord as we own three rentals, all have mortgage with expenses equals rent revenue.

I watched the whole debate online. 

@Eddy Dumire any breed of dog can be violent, it really all depends on how the owner takes care of them and trains them. if your concerned about the potential damage from pets, you can do one or a combination of these:1. charge an additional deposit to allow the pet (along with security deposit)2. charge a slightly higher rent (ex. additional $30/mo )3. only allow pets under a certain weight4. don't allow pets at allI'd typically lean more toward no pets at all, but I've made exceptions in cases where the flooring was at a point where I was debating on replacing or not. you also need to pay attention to people with pets as some will scratch or chew on doors, walls, cabinets, and other things. this goes beyond just dogs and cats too, so I'd at the very least take a deposit for any pet. 

I am getting this checked out by a plumber friend this week, but I still am debating pulling the washers out and replacing them with a coin-op to offset the water bill (paid by me).

They were debating on whether to sign one or two year and we told them we would charge them the same amount for either contract since they have been great tenants.

I get the impression that every fee outside of basic rent is going to be questioned and debated, and that she is likely to go ahead and fight me over her new security deposit, etc.

I debated even responding to this.

The guy is a handyman...I suspect he didn't finish high school, if that.At this point, I'm really debating whether I want them out of my house.

There is plenty of debate over that.