The other transaction, the seller was offering a standard BAC.

Then you give them a "take it or leave it" offer.One other bit of "home work" for you - how much will it really cost for you to repair the property if they move out, to market standards to get the $1150 in rent?

Normally, we hold all of our tenants to a higher standard but in your case your will need to play nice and give her what she is asking or find a way to meet in the middle. 

A "trust account" is just a standard bank account where you hold renter funds separate from your own money.I recommend two accounts: checking and savings.

When I confronted them, they defended their quote, stating that they go off the industry standard and a portion of the labor time is for "testing the system after repairs to ensure safety."

It’s a lower quality standard than most new construction homes.

I would use the standard realtor lease form in your area and then look up common extra conditions landlords are using now.

But "good enough" would be a mighty tough standard to meet.

Well, I just spent the last two week in Costa Rica and the alone Bourbon or Whiskey I was able to drink was standard old #7 Jack and once I got Beam.  

(For the application or the actual lease. )We were used to doing a standard Texas Realtor Residential lease.