Taken from the CDC "[Rabies] can also be transmitted when the saliva from a rabid animal comes in contact with a person's mouth, eyes, nose, or a fresh wound."

I’m currently reading J Scott’s "Book onf Estimating Rehab Costs"It’s hard to block years of smoking odor and other nasty smellsTSP was used to wash the walls and ceilings first; it got the grime off, but the smell stayedOne coat of oil based Odor block paint may not be enough; I can’t really smell the smoke or smell anymore, but my wife’s super nose still can smell a slight odor.I know this isn’t a cash flow cow; but cash flow isn’t my key objective currently as I have a full time job that pays well.

@David Coleman & @Ian Tudor thank you@Paul Timmins on the nose, I bought my home with NSP funds...$15k forgivable to stay in this freshly rehabbed house with all new appliances, plus another 5k from the county. 

They could not find their nose on their face. 

You'd get the occasional princess who would turn her nose up and that's when you say a gratitude prayer LOL.We included everything in rent - water, sewer, garbage, electricity & gas. 

It seems to be a trend to strip out stuff that used to be covered through property taxes, and then raise them every year anyway.http://www.timesunion.com/local/article/Albany-council-holds-nose-passes-trash-fee-6736788.php

Scenarios of subletting, huge amounts of family members moving in, unlisted pets, AirBNB deals under my nose, multiple calls for trivial issues, smokers, hoarders, etc.

I'm afraid this will be a costly mistake for you, but I sincerely hope you are lucky with this tenant and you can thumb your nose at all of us naysayers.BUT, you do really need to learn the laws for your state. 

Keep the carpet , take it to court as evidence  . let the judges nose make the call

If they want to thumb their nose at a landlord who wants to protect his asset by verifying their story as well as he possibly can, good on them.