Existing tenant tried to pay less than the rent
We just closed a small multifamily on 11/27 for house hacking. Current tenant lease will expired on December 31, 2019. Their current rent is $1350 which the city pays $243 for them. I went to pick up December rent and they're giving $807 money order and said they will give the remaining $300 on Monday. I refused to take it and told them I will pick up the full payment on Monday. I also informed them about their current lease agreement. It stated that rent are due on the 1st of every month. After the 5th, a $50 later fee will be charge.
Initially, we offered to renew their lease when it expired on December 31. We told them the new rent will be $1500 which is still below market. Averange rent for the area is $1700 based on Rentomater, the data and the realtor. We gave them rental application to field out and return in order to process their new lease. Which We have not yet received. Based on the portion of the rent payment, we are hesitate to extend the new lease. We are afraid they may not pay the rent.
How do we proceed? Should we tell them we will not renew their lease? Thank you.
lease when is expired on December 31,