This is the simplest method, but it also means your tenants are more likely to abuse the utilities by leaving windows open with the heat or A/C running, leaving lights on, ignoring the toilet that constantly flushes on its own, etc.3.

ESA's generally are not service animals and these are generally fake certifications that are abused by people to get free accommodations for their pets.

That kind of stuff is what really drives me the most nuts about the program, the fraud/abuse of the system.

Some gurus go as high as 70%, IMHO that is too high, leave some cushion for your private money people to sell in case you get hit by a bus.

Nelson Nash developed the concept in the early 80s but the product the concept utilizes has been around for much, much longer.Since you brought up term insurance (which is temporary w/ no cash value accumulation or dividends), oftentimes a policy will be supplemented by term insurance in the form of a rider that allows one to increase their death benefit such that they can store more cash in their policy without triggering IRS MEC limits and therefore be subject to tax hits.The concept and its value proposition is incredibly misunderstood (and sadly often abused) but the reality is it works.

The best you can do is find a provider that aims to inform you of any-and-all pros, cons, & risks.3) Whenever the IRS does start targeting abusers, you don't want to be riding on the leaky ship with the big bullseye on it.The upshot of all this is that for anything tax related, find someone that's focusing on you and trying to help - not someone promoting a one-size-fits-all approach.

  $6k deductible and no treatment (substance abuse) or pregnancy is covered for less than $500/mo.

It may be easier to offer the Tenant $6,000 to leave and be done with it.Unfortunately, many bad tenants have no fear of the legal system and they will continue to abuse this until you are run dry or the court finally forces them out.

Landlords don't need to get ripped off by tenants who abuse the law. 

It's also one of the most abused parts of any house.