It can be released for many reasons including the purchase went through without incident.

.), have had some DV incidents at our places, and a neighboring unit drug dealing, but my husband and I work closely with the police.

We had similar incident,, regarding heating,, a pigeon had blocked the vent on the furnace / hot water heater system and of course was sitting in there dead, the water heater kept going out.. we couldn't figure it out.. then decided to check the flue and found the dead bird... put a chimney cap on the flue and hope it wouldn't happen again. 

My hesitation in this specific incident is about the bottom line. 

Both parties to the incident should contact their insurance agent.

If there was a fire or incident in the home your insurance company will not cover the home when they find it was not being rented under proper use and it could be a legal nightmare from a liability standpoint with tenants.   

A regular homeowner's policy or tenant policy won't cover any claim if the carrier finds out that the incident occurred during a short-term stay. 

There are other landlords in our areas who have a different perception of what constitutes accommodations fit for students and they have a much higher incident (damage, eviction, etc) rate than we do.

I believe upcoming changes to flood insurance disqualify properties with some number of flood incidents. 

In addition to the foregoing remedies, the department may impose an administrative penalty not to exceed $5,000 per incident pursuant to the provisions of chapter 120 or may issue a citation pursuant to the provisions of subsection (3).