On July 3, 2013, I gave the tenant (Orange County Ca) a 60 day notice that the lease, which expires on Sept 10, 2013, would not be renewed. The July rent, due by the 12th, is being withheld. The units in the neighborhood are in an HOA and repairs to the exterior of the units and fences are required before scheduled repainting of the units which will take place later in the summer. No repairs have been done to my unit yet. The only thing done was the removal of trees in the yard. Their claim is that they are suffering "gross inconvenience" and should be compensated even though no work has actually taken place on our unit. There is work being done on the unit attached to the property and on many other units in the area. I don't feel they are entitled to compensation. I have emailed them that they are late with the rent. They emailed me that they are looking for a place and will let me know the move out date and then they will settle up with me. I have told them to pay rent and we will settle up when they leave. I told them that there is no basis for withholding rent but if I serve them with a 3 day notice to pay or quit after already serving a 60 day notice are there any problems that might arise. What is the best course of action at this point?