Ensuring a solid lease agreement and security deposit will help mitigate this.

As I understand, landlords there cannot charge application fees, security deposits and evictions are VERY challenging.Have communicated with several PMCs and investors in Ohio market and not aware of any real differences from Michigan. 

Also helping was a relationship with that bank (deposit accounts) and good credit. 

Most work with us, some do not.Be careful also as they may tell you to keep their security deposit as last month's rent.

It's simply factual:  you violated the lease by smoking, stop it, remove the resulting odor and that a repeat action could result in eviction and loss of security deposit.  

That’s like depositing $300 into a savings account every month.Plus, it’s an investment property, so you can depreciate it to save on taxes.More Than $1,500This isn’t just about making $1,500 in rent—it’s about building long-term wealth.

I would keep the deposit unless I am able to rebook the dates and then I would only make her pay the difference for any unbooked nights. 

Payment TermsContract Value: $[Insert Amount].Deposit: $[Insert Amount] due before the commencement of work.Payment Schedule: Payments to be made as follows:[Milestone 1 and payment amount].

Quote from @Matthew Beninate: Quote from @Sarita Scherpereel: Quote from @Seo Hui Han: You may want to consider local banks / credit unions just because many of them will require or give you more favorable terms for things like HELOC's and other line of credit products if you have a deposit account with them. 

If it is minor, make sure it comes out of  their deposit when they leave.I'd look into hiring a property manager.