Potential applicant sends me picture of his drivers licence at my request.

That could not be farther from the truth and it normally leads to financial disaster.It's like buying a car without bothering to get a drivers licence and expectation to have a chauffeur.

He buys SFHs that have a existing licenced secondary suite in the basement.  

I hate to suggest it but I think the government should licence landlords and require a mandatory training/testing course.

I have... ...about 50 times each.While those stories go on and on about how people (fictitious animals) keep taking if you keep giving, what they don't cover is once you stop... you stop.Basically the future problems are now.I have a property that I was planning on rehabbing and renting out.It currently has the previous renters of two years inside.They want to pay and stay for another month until school ends for the kids and then get out or stay and pay the market rent.If they don't pass the rental application process, they are out.

You are dealing with a group of people who are fundamentally stupid, and tripping them up is ridiculously easy.An ex tenant of ours had a fictitious lawyer call us up, threatening all sorts of things.  

But you blatantly ignored this point only getting caught up in the details of my fictitious story to point out how my story was a bad example (which I stated it was).   

I haven't been to big on getting my RE licences.

if you don't have proper licence in a dispute.

Have a licenced contractor inspect the property and give you an estimate on the costs asap.