What precautions at min should I take?

Banks are tightening up lending, a precaution which is probably the right thing to do for the banks, but it’ll kill real estate market.My buyer is putting up 40% down payment, I hope their mortgage application can go through fine.

Take precautions, wear a mask, etc etc... but do what you have to do. 

With some common sense precautions and due diligence those risks can be mitigated. 

The problem is whether I would get in trouble for doing it, and if there were any legal ways to do it or precautions I could take to not get caught.

I guess at the end of the day I have the best sense of what requirements I can get away with in my market and I'll have to decide the right balance between screening precautions and filling the unit.  

People who take precautions are not fooling themselves.

Take reasonable precautions and carry good insurance.

If you are taking the proper precautions up front on requiring this type of documentation, then down the road, if the beastie shows up without the required documentation, it is a lot easier to evict for breach of clause.

It seems that if you are going to look there you have to take extra precaution about it and perhaps call a CPA in the state to get a better idea of what a person would be in for.