One tenant will smoke inside, sneak in 5 pets and change their Harley oil in your living room and you'll be out thousands.  

If they were permitted, you wouldn't have to post them in the dark of the night and use a phone number that can't be traced.  

I could get 2%, but its a part of town that you need the swat team to go into after dark.  

It's a calculated decision based on at what stage and condition the building is in.For retail if there are no demising walls yet and it's in a cold dark exterior shell condition the all in costs for putting in walls could be 35 to 40 per sq ft with plumbing and ceilings etc.If you have demising walls already could drop to 25 to 30 a sq ft.

Tell them they can smoke outside only.

my suggestions would be to add a small porch and then as someone else suggested paint with contrasting trim, possibly dark red colored door.

I was there last week doing some work and I did notice some dark colored dog hair along with the yellow lab hair on the white tile. 

Most lenders will require the property to be vacant at closing.We work with some rehabbers who are completely fearless, and able to deal with a range of distressed properties from severe foundation issues to areas you'd never go to after dark.

Unless there is another reason that you wouldn't rent to them (ie; bad credit, poor references, smoking, etc) and you can PROVE that is why they were denied, then you have to consider them as prospective tenants.

Trouble is, at top and bottom edges there is splintering of the material, most of which is easily fixed with  a dark stain touch up or wood putty.