My tenant is moving out this month and she is claiming that we have to give her a cashiers check for the security deposit and the pet deposit right away after the walk through or else she will go to court.I know we have upto 21 days to refund the money but what is the procedure as we wont know right away what the condition is by just doing a visual inspection while they are they standing there.

Unauthorized pet?

(One of my pet peeves is white garage doors, unless they are some unique feature on the house, paint them the same color as the body of the house, otherwise, that is what draws your eye, and bland garage doors aren't anything to accent!)

Obtaining copies of the application and background checks may require the tenants consent - here in Canada, it would be a violation of federal privacy law for the Vendor to simply had them over.One thing Kevin omitted, and why you need the leases before the end of your diligence period, is to prepare an estoppel certificate for each tenant using the information obtained from the lease, then meet with the tenant to affirm the information and to discover any other material facts (i.e. side agreements, pets unknown to Vendor, etc) and have the tenant sign the estoppel.  

@Tammy Wise  Yes you can have them get renters insurance with a pet clause.

My recent tenant asked about the pet rent policy ($250 deposit and $25/mo per pet).

For example, you can say, "No pets," but there is no place to enter in pet fees.

So I wanted to see the best way to proceed:With the lease that they are under, it clearly states NO PETS.

@Brandon Sturgill  What you looked at feels like a deep pocketed developers pet project.

I don't mind if a tenant works from home as long as that work does not create any strain whatsoever to maintenance of the property, or cause inconvenience, noise, and liability to anyone else.For example, buying and selling stuff, requiring UPS or FedEx multiple times a day for pick up, drop off, sometimes many packages on doorsteps; running a misery, conducting a yoga class, hair and nail, pet grooming, are all going to have frequent visitors that may park in neighbor's parking spaces, and you might be liable if a dog being groomed in unit C bit a baby being dropped off for baby sitting in unit B.