If one apartment is creating noise or odor problems for other tenants, any landlord has the write to ask the tenant to remedy.

They really should not turn the water on out of fear of further damage and there is already an odor from the damp carpet.Am I obligated, or is it good practice to, pay for the tenants to stay in a hotel until the repairs are complete?

If its really bad I would consider take the floors out and they have a Kilz odor blocker you can apply to the sub floor if its plywood these floors are on.

Is there foul play here?

No reason to debate with the tenant, especially if they are using foul language or being disrespectful. 

If you promised the tenant you would have them installed to have them sign the lease, then I think they deserve some kind of solution from your part, but you didn't go into those specifics..but nevertheless, I would be pretty bummed if I were your tenants..It may not be grounds to terminate the lease, but it would be grounds to have a pretty foul relationship with your tenants..

There will be some odor.

Assess a cleaning fee to remove any odors or stains.

If nothing is said to you by your employer and the loan closes, "no harm no foul".

Hi, looking for advice how to rid a home of cigarette smoke odor.