Personally I’d offer to terminate the lease early and get them to move out so I could re-rent ASAP to new tenants at market value.

That's a smart move – the location sounds perfect for attracting tourists and outdoor enthusiasts.

New tentants moved in around the middle of January, they asked that a fence not be installed as they had no pets and they wanted their daughter to be able to ride her bike in the backyard.  

At least upgrade to a spreadsheet and start tracking things the way your CPA wants.With five properties, I would consider moving to a CPA firm with staff and more than one set of eyes on your books.

I just couldn't sit idly by and watch someone try to manage getting a contract negotiated, signed, and moved through to closing when it was obvious they weren't sure what they were doing most of the time.Instead we offer a 1% full service listing (it's flat fee in that we don't tack on anything else - no technology fees, no transaction coordination fees, no marketing fees, etc) - we're just 100% virtual.

Rent the house and allow people to rent the UTV separately ($200-$350/day depending on season). have a very strong liability disclaimer and contract form.

Tenants paying 1650/mo for 2 bed unit, and we will rent the 3 bed out for 1750 when we move.

What would be the best way to move forward? 

However, there was no DNC data there, so this may have to be done separately.

However, the hard part is the expensive bay area entry price - even with the VA loan, it's still difficult to find places that makes sense for both while we house hack and when it's turned into investment property if we move.