- between the cleaning, some of the damages, and the unpaid rent and utilities...

He paid for the security deposit and the 7 months up front no issues.Kevin typically is a great neighbor, even doing (approved) home improvements to the unit (he repaired a fence that was damaged due to weather conditions for example) as he was moving around a lot beforehand and was excited to settle down somewhere and call a place "home". 

Because,  the deposit by itself is not enough to protect property from any big damages, would adding more rules in the contract next to the basic contract help?  

Get a good GC who has experience with fire-damaged homes to come take a look and give you an idea of how bad the damage it. 

For example the first $50,000 in damages/claims they will insure and then get a policy to cover anything above that. 

I've encountered several situations where tenants not only broke their lease but also caused damages, sometimes even leaving before the lease ended with damages behind.To clarify, when I mention damages, I'm not talking about normal wear and tear but rather significant repairs costing between $5,000 to $8,000, which don't qualify as vandalism for insurance purposes.In the past, property managers I've spoken to have often discouraged pursuing tenants for these damages, citing it as not worth the effort.Here are my questions for you:- Would you pursue the tenant?

Liability is usually based on a simple formula, duty, breach, causation, and damages. 

No structural damage to line just build up.

Yes indeed mate.I probably would have fixed the rate also but "underwritten" the deal from a worst case rate scenario like I would do with SFH if financing.I'm not versed in large multifamily deals and would love to learn more.I think I could really do some "damage" in the field because I own and run a property management company and we run a tight ship that's very well optimized from an automation aspect and affiliate fee structure standpoint.So my bottom line for example buying a 50 or 100 unit would be much safer/higher due to in-house PM and "working" the margin.

I want to require my renter to purchase renters insurance and add it as a condition of the lease with any damages to the property to be made payable to the home owner if the tenant is responsible for causing the damage with say a fire or unreported leak, etc.