Tenant smoking in unit

[Travis Kinney]

I'm currently house hacking in Jackson, MI. This is my first multi family/ first property and I plan on buying another property in may. 
im in a pickle. I have to finish remodeling the upper unit (my unit) and the lower unit lease was just renewed, they're quiet, pay on time, low maintenance, been there for ten years and we just renewed. There's been two times where my management has reminded them there's no smoking in unit. Other than the smoking they're the perfect tenant. However it's still lingering in my unit. If I don't renew next year then I'll have to pause moving due to the damage most likely to the lower unit as it's been ten years since any works been done to that unit. My unit (upper unit) is all remodeled and it's smelling like mild smoke. in lease it says no smoking in unit, tenant has no SD, but in lease says tenant is responsible for up to 10k in damages. I'd love everyone's advice.

[Lateefah Mathews]

@Travis Kinney Honestly, Travis, that’s not a tough one. Granted, your tenants look great on paper, but smoke damage is nothing small. Despite them being good people, the reality is that smoke travels and seeps into drywall, HVAC, and flooring. You’re going to pay for it one way or another, so it’s better to start remedying now rather than later.

Your lease clearly prohibits smoking, and they’ve already been reminded twice. That’s a violation. And if you think you’re going to get that $10,000 without it being a security deposit, think again. The next time you do a lease-up, make sure you collect an SD. Now, I would let them know continued smoking is a breach and comes with financial consequences. I would also raise the rent to offset the anticipated cleaning and rehab costs or give notice that any future violation will trigger non-renewal. If they push back, you can offer an outdoor smoking area with clear boundaries & rent still increased, but otherwise, it’s time to plan that rehab now rather than later because the longer you wait, the higher the cost gets.