How do you deal with nail holes in walls?

[JD Martin]

Probably an odd question for my first question (great forum, btw), but I couldn't find anything that really addressed my question.

One of my rentals is almost completely paneled ( now painted). When I bought it, it had been fairly neglected for a number of years by the previous owners, in that they did a very bare minimum of any kind of maintenance. Anyway, when we painted the old paneling, it revealed boatloads of holes from nails, presumably from hanging pictures and the like.

How do some of you deal with hanging things on walls? We are leaning towards a "Command Strips" provision in the lease, especially in this particular unit, as the holes in paneling are not as easy to deal with as in drywall; what we would do is provide the first batch (say, 20) of Command Strips, and let the tenant buy any additional ones they need from there. But Command Strips won't hang curtain rods or hold flat-screen TV sets. 

Thoughts? Thanks!

[Victor N.]

@JD Martin I have successfully used regular painters caulk to fill in small holes in panelling. No sanding  and no priming needed and the caulk dries fairly quickly ready for painting in less than 1/2 hour.