Dear Adrija,
You can build a domain model as above, where once the book is issued you can save the date, but if the employee clicks on renew, an object of renewal will be created and iteration will be set to one.
If an employee renews the book again, there should be a check where Iteration>2
If so show a message to the user that they cannot renew.
Also
you can easily show these details using a data grid as below:
Hope this is helpful!