She now has my accounts set up with all types of rules and guidelines to simplify things.

@Sami Gren Your attorney's advice is not baseless, there is legal reasoning and precedent in NJ that supports the requirement that a rent increase/renewal notice should effectively terminate the old lease (notice to quit) while offering a new lease.

I'm guessing this would be your first time buying a home (like myself) so don't forget to also check out FHA guidelines and requirements ;)

A couple of things to think about from a landlord’s perspective (not legal advice, just what I’d do in your shoes):Everyone on the lease is still responsible right now.

I work with lenders that can do both with certain guidelines.

Fannie Mae has guidelines that state that a property can be transferred into an LLC, but there are some requirements to be met.

Of note, this is why we have to adhere to "underwriting guidelines".

FHA guidelines will tell you what is "livable".

I've learned that any deviation from the written contract creates the perception that everything's negotiable or just a "guideline".  

Verify the studio is legally permitted as a separate dwelling unit with its own address, kitchen, bathroom, and separate utilities/entrance—many "studio apartments" in Florida are unpermitted conversions that violate zoning and could result in fines or forced removal.