Long story short, I was unaware of some building issues of a SFH in CA. This portion of the home will likely require demo per the city. We have a tenant in a 2 year contract, they still have 1year and 8months left. They live in a portion of the home which is attached to the part which will likely require demo (they do not have access to the demo portion).

How do we go about this? What happens if we must terminate early? What costs do we have to pay them? Is there any way we can delay demo for another year? 

We are first time landlords and are learning a lot from this stressful process.