Tenant refusing to sign 1-year lease

[Pavan Krishna]

Hello fellow BPers,  i've tenants in my house for 10+ years.  For a while I engaged different property managers.  But, due to various book keeping, timely rent payment and other issues, i had to let them go and self managing the property for the past 3 years.  So far no issues with the rent payment with the tenants. 

I've been renewing 1-year leases for past 3 years.  The current lease comes for renewal in a month.  When I approached them about their intent to extend the lease, they told me that they want to go to month-to-month.  I prefer long term leases, at least 1-year.  however the tenants do not want to sign it.  I would like to tap into collective wisdom of this forum in figuring out my next steps.  I see the following as my available options:
1.  Try convincing them (again!) on need to sign 1-year lease.   best option for me, but least likely.  as we have been going round-and-round for the past 2 weeks on this with no resolution.
2.  Go to month-to-month:  they have been paying rent for 10+ years.  there is high possibility they will continue to do so.  2 problems with this approach.  a) they might vacate in middle of the winter, when it is least convenient for me.  b) if tenants start dictating terms to owners, not sure where this will lead.
3.  Ask them to vacate:  they have been there for 10+ years.  hate to lose them.  but, if it comes to losing control over my house, i guess, i need to resort to it.

Has anyone else faced similar problem?  please share your opinions/suggestions.

Thanks

[Garrett Bradshaw]

I would try to make my month to month increase able to cover future vacancy if they decide to move out. Though I have heard of people offering a reduced rate, or an incentive for the year lease. Instead of a "punishment" for month to month. just depends on the approach you want. 

[Jenny Bayon]

We are also in California. We are in the process of FOUR evictions. Each eviction costs $3,000 or so, plus loss of rent that we will never see. Know this, in CA, every law is in favor of the tenant. People in WY or OH saying, "it's your house, you make the rules" are, unfortunately, very incorrect. Since the Tenant Protection Act of 2019, you can not simply terminate a lease. You have to have a 'just cause'. If your yearly lease lapses without signing a new yearly lease, the lease automatically converts to a month-to-month. Our two lawyers have given us different advice on which is best. My personal advice is, if you have a good tenant, thank the heavens and do the month-to-month like they requested. 

We are considering getting out of residential properties altogether and focusing on commercial. CA law has created tenants from hell!