The short story is that we believe that the building is infested with drug dealers.

I would send them notice of three violations. 1) lease says no pets...get rid of the cat before it destroys the property.2) stop smoking on the property or face eviction, offer to release any smokers from the lease.3) cure the insect infestation immediately.Inform them you will me making regular inspection visits and expect the issue to be resolved.Your other option, if you have no desire to inforce your lease is to tear it up and write a new one that you do intend to inforce.

How old is the house and how much damage has the termite infestation done is the real question.   

Gang & drug-infested areas run $1,500/2 bed apartment. $3k for similar in Mission Valley.

The state inspector said there are 2 types of homes, those who have had termites (and show prior evidence but have been treated showing no active infestation) and those who will have termites.

And when I had spider infestation at the property the exterminator advised us to clear the area of grass next to the house, and the landscaper came and did that.

If you have experience with termite infestation in a investment property please share your advise.  

Sewer main leaks, plumbing leaks and clogs galore, flooded crawl space (from the leaks), roof leaks, damaged decking, bug infestations, mold issues, 30+ year old HVAC systems and water heaters in multiple units (some functioning, some not), foundation issues, etc.

A warzone neighborhood is heavily crime riddled from home invasions, carjacking, to purse snatching, drug infestation, unkepted lawns, trashed streets, abandoned vehicles(which oddly enough Philadelphia local officials have taken a stand on those back in the 1990s and they are rarely seen at all today but the blight houses still exist heavily).

We called out an exterminator to inspect before they moved in and they found evidence of past infestation but no live bugs.