My lease says that they have to pay for all damage above normal wear and tear, and I have a form that specifies each charge.

Upon the expiration of the Lease and any extensions thereof, Tenant shall surrender the Premises in as good of state and condition as they were in at the commencement of this Lease, reasonable wear and tear from ordinary use excepted.The issue here is there is not mention of a $$ for a Penalty. 

It may be more beneficial to tear down and build new depending on the condition and comps in the area.

Im 95% sure its what people call a tear down it actually turns out a family member owns it.

This would be a tear out of the shower box and tiling a new shower.

Like @Shawn Kostoff mentioned you do have a bigger buyer pool with 3 than 2, but that also brings more wear and tear. 

It was re-assessed and wear a tear down, a fire, ect. 

I am currently helping out a victim of hurricane Harvey, as a PM, tear down her flooded home and rebuild a new one.

Is that as you state the rental demographic is TOUGH.also in our state trailers that are older than a certain age may NOT be moved on the highway you have to tear them down on site and haul to the dump..

Sep 2012 - Bank owned home - MLS - House was a tear down on a rough street, no one wanted it, listed for $50k, paid $35k.4.