While they more than fit my main two criteria for tenants, namely pay the rent on time and no concerns about damaging the property, they are becoming increasingly demanding about improvements to the house and yard. 

Vandalism, Theft and water damage are pretty likely.

We have a commercial general liability policy that is pretty easy to add and subtract properties from, and I'm looking for something similar for damage coverage.

(They are already arguing over who its entitled too) I'm just hoping to come to an agreement that doesn't end with an expensive eviction process or serious property damage...

This is upsetting a lot of people and these contractors are being confronted when home owners report them. most houses do not have flood coverage, and mold damage is severely capped if not excluded.

The policy that Airbnb has only covers damages, not liability, so you definitely want to make sure you have robust liability insurance just in case something happens to someone on your property! 

@Justin FoxYou may be eligible for FEMA grants for your personal home for contents and damage (not income based). 

If they refuse to sign, your only recourse is to recover monetary damages.

Taxes 7%Insurance 9%Xtra Flood Insurance 9%Vacancies 5%PM 10%CapEX 5%Repairs Tenant Damage 5%From total purchase price:Down Payment is set at 25%Closing cost is set at 1%Rehab Budget 1%Are my percentages on the conservative side?  

Venting issues at all for the dryer,, make sure you get that figured out..And good luck on the renting,Adjusting 50 to 75 bucks less and getting response is better than loosing a month.Pets.. might be OK but really jack up the pet deposit or do pet rent to make up for the damages they do..