You have your screening criteria for a reason.If it works, and this person meets your criteria, move forward.If they don't meet the criteria, on to the next.A few folks here have already touched on this: keep in mind the implications behind early termination of the lease and how to reimburse money if it's required.

I tell my applicants that as long as their info checks out and their application is accepted that I will reimburse them the fee as a credit toward their first months rent just because I don't like to nickel and dime people, but that's a personal preference.

However, if the LLC was negligent, your landlord may want to pursue them for reimbursement, or their insurance company may do so.

All their bills are transparent and include the Utility Bill for the entire building with an easy to understand breakdown of the pro-rata charges.These 'recoverables' or 'reimbursements' are simply added to the Tenants' monthly rent bill as "Added Rent" which our Tenants have been happily paying for years.I can't say we've ever had even a single problem implementing this. 

For us they would buy additional material and we'll reimburse the material with the receipt at the end.

You wouldn't have to deal with any construction holdbacks / reimbursements which is nice.

When I have done new construction between $500k-$1M in cost the contractor asked for 5% upfront, to be reimbursed at the draw that completes framing, and this was fairly standard in its market. 

It’s also important to document any insurance reimbursements received, as losses must be reduced by that amount.

As a precaution, they now include in their lease that the landlord pays certain utilities and will be reimbursed by the tenant.

We typically don't have trouble with getting 80% of your purchase reimbursed to you as long as the DSCR hits 1.00+.Here's a quick breakdown of the eligible loan amounts based on an all-cash investment strategy:• 0-6 Months (Delayed Purchase, no Rehab completed) - up to 80% of purchase price• 6+ Months (Cash-Out Refinance, no Rehab completed) - up to 75% of appraised value• 0-3 Months (Cash-out refi, Rehab completed) - 75% of appraised value [good rates]• 3-6 Months (Cash-out refi, Rehab completed) - 75% of appraised value [best rates]Happy to discuss your specific deal whenever you've got time to review.