When should I notify tenants we aren't renewing because we want to move back in?
I became a landlord after we were unable to sell our previous house, and decided to rent it out, but our circumstances have changed and we now want to move back into the house ourselves.
The tenants will have only been there for 1 year, and their lease runs through January 31. Our plan is to move back in once their lease is up. I'm looking for advice on how to approach the conversation with them in the best way possible. I know objectively it's my property and I have no obligation to renew their lease beyond our agreement, but I still feel ****** about kicking them out of a place they may have been hoping to make their home for a couple years before they decide their next steps. Our lease states clearly that their lease ends on Jan 31 and "Neither Landlord nor Tenant is obligated (and neither has any right) to unilaterally renew or extend the Term of this Lease."
The tenants aren't total strangers to us. We originally met them through my gym, and we occasionally see them when we're at the same class or at events the gym hosts. We aren't friends, but we're friendly and will likely see them around. Because of that, I really don't want this to feel awkward or like we're blindsiding them. I also have no idea whether they were hoping to renew. I don't want to assume that they were planning to stay, but I also don't want to wait until the last minute to tell them.
I'm thinking that we should be upfront that our circumstances have changed and we plan to move back into the house, rather than simply telling them that we're not renewing. I feel like giving them that context is important so they don't wonder if there's some issue with them or think we're ending the lease for a retaliatory reason.
I'm also considering offering some flexibility around the move-out date. For example, if they happen to find another place they really like and want to move out a little earlier, we'd be willing to end the lease earlier. Or, if January 31 is an inconvenient time for them to move, we might be willing to extend the lease by a month so they could move during a more optimal rental period. But I'm thinking about not initially offering that unless they ask because I'm worried about how that offer could come across. I absolutely don't want them to interpret “we're willing to work with you if you want to move earlier” as “we'd really prefer that you move out early.” We're perfectly fine with them staying through the end of the lease. The flexibility would just be intended to make things easier for them if their plans happen to work out differently.
How would you approach this conversation? How much explanation would you give about why you're not renewing, and would you offer flexibility on the move-out date?
My husband thinks we should give them plenty of notice and even tell them now to be considerate, but I'm worried about giving too much notice if there's not much they can even do in terms of looking for a new place yet, without making them feel like we're trying to push them out sooner than January 31.