In my area, the tenant may withhold rent or immediately leave if the landlord fails to make the place habitable.

It’s crucial to acquaint yourself with FIRPTA regulations, which mandate income tax withholding on the disposition of U.S. real property interests by foreign individuals.

Cap ex withholding?

This is a vital advantage of this ownership type.Withholding taxes: A foreign person’s U.S. real property interest disposition is subject to income tax withholding under FIRPTA.

Some sellers ask the LA to withhold or ignore any offers below a minimum amount, or incomplete offers, offers not in writing, not on the state approved form, without proof of funds or lender letter, with an escalating clause, etc.

They are monitoring what I do with the money, in the sense that they’re withholding a certain percentage of funds and requiring me to have inspections done, etc., as a way of ensuring that I put it towards a renovation and not just walk away with it.

Agents can withhold listings and the seller would never know.

Do they have to pay taxes in the US and do I need to withhold anything from them before paying their interests or will they report their gain in their home country and pay taxes there and nothing in the US?

Most everyone is comfortable with holding a property for a year. 

The best is when they move in and immediately begin making maintenance demands for things they broke themselves, or because some man they lied about not being on the lease is living there and broke it, or one of their endless supply of children broke it  and it's like you still owe like a grand from your deposit maybe don't take such a tone when you fuss over maintenance issues you created in the first place - but God forbid you withhold whatever pithy deposit they did manage to cough up for damages because they go full throttle Jerry Springer guest in 2.2 seconds.