When the lease expires, I offer my tenants the option of signing a new lease or reverting to month-to-month. Some tenants like the perceived security of a lease, other prefer the flexibility of going month to month. If they’re good tenants it makes no difference to me, and they seem to appreciate being given the opportunity to choose what option they want to take.
BTW, the law in California changed a few years ago: if the tenants have lived in the property for a year or longer, you must give them 60 days notice. It used to be 30 regardless of the length of the tenancy.
