How would you handle a tenant (single family home) with a lease expiring on July 31, 2013 that wants to stay indefinitely?

Background
A month ago we informed them that we will be increasing the rent as of August 1st ...

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Hello BiggerPockets!
Another successful Fix & Flip completed out in Ocean County, NJ.
This project was a success and another great learning experience operating the project from a far. 
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