Hello BP community,I have given termination of lease to end this month to a Sec 8 tenant who violated the lease with subleasing, damage, and failure to cure and repair damages est. $35,000.

Once they move in, it becomes the damage deposit.

Comps in the neighborhood are iffy and it seems to be largely block by block as far as how good of an investment I tis. 

Were very hesitant to rent it out to such a large party because we did such a great job updating the home and we feel that all that work may get damaged in a short period of time.

Whether or not you have an LLC, if you are found to be grossly negligent, it could be you that is writing the check for the judgement, and depending on the state, it can be up to four times actual damage.  

Possible damage that didn't get fixed because the arbitrager wasn't able to make a go and they just walked away.There are all sorts of possibilities for problems.

Also, in the rental agreement, it says:"HOLD HARMLESS AND INDEMNITY: OWNER of rental property shall not be liable forany damages and/or injury to TENANT and/or their guest(s), or their personal propertydue to TENANT’S acts, actions or neglect.

Whether they are section 8 or market rate, a bad tenant can cause $10's of thousands of dollars of damage really quickly.  

And depending on the state, gross negligence damages can include punitive damages for up to four times actual damages. 

You have no damages, though the previous owner at the time of demo may have had damages.3) Statute of limitation, if applicable, expires on nearly everything on civil matters at 3 years.