They prioritize personal development.

Now the tenant may have a legitimate personal injury claim and more.3) "Citing Renters Insurance declined coverage"- So, tenant has Renters Insurance?

Great start to life. 

but i also 2nd @Jay Hurst's sentiments - get a 2nd or even 3rd opinion on DTI/ full doc. i personally love files that are puzzles, i get some weird satisfaction out of figuring out how to make it work on full-doc, especially when my client has been told "no" before. if it doesn't work now, a good loan professional will help you create a path forward.

Personally I would not.

If someone is walking down the street and trips on your sidewalk or a  walk way whether its a tenant, delivery person or passerby you are the one who gets sued because its premises liability exposure.

It's stronger in court if they do it, nothing personal.

Makes life way easier as tenants can't go complaining to you about it as its their own responsibility. 

I've personally invested and work with investors - it's critical to get your numbers right on the front end.

Contents (Personal Property): most homeowners policies give a set % of the Buildinglimit for Contents.