I like my Tenants & want to keep them, BUT (lease, tenant)

[SCDQ]

I rent out bedrooms (to two different tenants) in a house we own in a nice, quiet area of San Diego County (Calif). The tenants are on a month-to-month rental agreement.

Both tenants are on unemployment but have managed to pay their rent on time for the past couple of years. They are clean, quiet, and take care of the place nicely.

I just found out that they do not have Renter's Insurance, as is mandated in the Rental Agreement. I am going to expand that section in the Rental Agreement to include how the Tenants will provide me with proof of having gotten Renter's Insurance. Yeah, my fault that it wasn't worded clearly and that I did not follow up on that.

I also want to update a few sections in the old Rental Agreement and reduce Tenant #2's rent--we had a discussion and this will help him use that difference to pay for Renter's Insurance.

The Tenant #1's rent is already low but he has family help with extra income, so I don't feel guilty leaving his rent as it is. He is agreeable to getting Renter's Insurance and has always been reliable and dependable in the past.

Ques # 1: Do I use a Notice of Material Change to update just the sections that I am updating and all other sections of the old Rental Agreement remain the same, or would it be better to give the Tenants an updated month-to-month Rental Agreement?

Ques #2a & b: Since the update to the Rental Agreement does not include a raise in rent, but clarifies certain sections of the Rental Agreement, do I have to give the Tenants 60 days before the Changes go into effect? For example, because of past problems with guests parking in the driveway, preventing the other Tenant from parking in their driveway, now parking in the driveway is limited to tenants only, and not their guests (there is plenty of street parking)--can I make it effective immediately or effective within one week from the date of the Notice of Material Change, or do I have to give them 60 days?

Ques #3: Tenant #1, who does not have Renter's Insurance, asked for 30 days to get it in place. Is this acceptable, or should I do a Cure of Quit on him? Is a Cure or Quit always 3 days, or is there some Notice or Form that I can use that will give him until January 1st to get Renter's Insurance?

Many thanks in advance!
SCDQ

[ShaneSA]

I would write a totally new lease with all changes in the new lease. I would also date the lease for 30 days from the date it is effective. That is if the new lease is presented on December 1, make it effective January 1. Give the tenants 30 days to decide to accept or give you notice to move.
You can ask for proof of insurance be presented and also proof of renewal on each renewal dates of the policy presented. That way you make sure it stays in effect. Put it in the lease.

[SCDQ]

Thank you ShaneSA--that's exactly what I ended up doing after I read your post. I had been thinking along those lines anyway, but was unsure of myself because I've only had these two tenants, ever!

Bye for now, and thanks again!
SCDQ