Kensington is a rough, open air drug market these days.

Thinking that a "bank" deserves any different moral treatment than a person is your mistake. 

I made a loan one time on a 12 unit in Tacoma by the time the guy stopped paying me it was full of TWEAKERS drug dealers pitt bulls etc.Took it to foreclosure it was such a mess I drop my opening bid by 50k under what I was owed.. it did sell.. but I did not want to fool with it.. it was as rough and tumble as anything in any other market I work in.. 

If, in fact, bedbugs are found, the tenant will have to pay for the treatment.

Agree with @Carl Fischer that you should engage a tax CPA or EA to examine your unique facts and circumstances...However the distinction between who owns the roof is important and determines tax treatment. 

But I understand they are a drug addict who isn't very aware of things.

I have come across a condo association that is VERY rundown (drugs and homeless) and not doing well at all, interestingly it is surrounded by multiple apartment complexes geared towards students.

I have come across a condo association that is VERY rundown (drugs and homeless) and not doing well at all, interestingly it is surrounded by multiple apartment complexes geared towards students.

If there is drugs related activity, I would send all the units a notice that the cops are vigilant and on a certain day there will random checks, that will chase half of the peddlers out.2.

@Matthew Paul Lots of drugs. time is irrelevant at some point