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This 3BR house has only been vacant ten days and a lady looked at it and said she will sign the lease if A-- we paint the kitchen a different color, and B-- if we let her put up a chain link fence around the back yard at her own expense.How does this sound to you guys?

He said the colors don't match with his decors.

Even if you have to offer a small tenant concession, it's worth it.Speaking of concessions - I offer something small [like a ceiling fan or one room of custom color paint] for them to sign another term once the current lease is about to expire.Also, I assume/hope you have a rock solid lease.  

In the past on our rental we would upgrade or replace things only when broken or needed (a little annoying when we were replacing and changing color of appliances but our tenants were okay with it as they knew everything was being replaced within a years timeframe).  

The new drywall had paint that is no longer a uniform color or texture, but rather consists of a mixture of crayon drawings, dried food stuffs and trails of sticky juice splattered on the walls.  

I want to make sure you thoroughly understand this piece since you are going it alone.The Fair Housing Act prohibits discrimination against prospective tenants and current tenants on the basis of the following characteristics or "protected classes": race, color, religion, sex, national origin, disability, and familial status.

Something that helps me is I have a provision in my lease that describes the paint brand, texture, and color of every room for future reference.

First, the paint colors are really nice and I think the kitchen looks great as far as appliances and back-splash and counters, as well as the siding and the wood railings outside.  

All great insights already here Winn, but if you are able to oversee the painting, there are some ways to help with this often unavoidable turn over expense....For example, this time insist on some high end paint (think specialty paint store or the very best big box stuff); try a pearl or washable finish; I like one color for all the interior of all my units, ideally a white that can hide some imperfections (know and keep the code); this means no color or matching mystery later; then on the next turn over, see if you can't get away with just a wall cleaning; use a damp sponge mop with tsp or a tsp substitute  (and then rinse it with a clean water and a damp sponge mop)..not too much water, just damp..