I've had tenants for 3 years on a lease option of my property. 

But, how do I go about this, because don't the leases have to be honored?

No sale/escape clause was in the existing leases so we figured we'd tread water for the 6 months until we could turnover and bring better tenants in. 1 tenant has been late every month  on rent so far.

If the tenants are in the middle of a lease, you have inherited tenants and will likely have to ride the lease to the end

The tenant was a nightmare who ended up breaking their lease, threatening to sue me multiple times and just tying my stomach in knots.

I'm set to receive the rent rolls and lease agreements. 

I'm not disregarding this idea though, just putting that out there.I was thinking perhaps trying to take this sub-2, inform tenant we won't be renewing lease in March, do the work at that point and list late spring.

Also, when we transferred the property to the LLC, we updated the lease agreement to between the tenant and the LLC instead of to us personally.

It is in my leases that they are responsible for that. 

Many of you have shared your preference and benefits of having tenants on M2M Leases, how do you handle Taxes?