All you have to do is make a compelling point for them, and having a broken property that they don't want to fix can be a reasonable one.Anyway, allow me to give you a couple of points to think about.Downtown LA has been suffering because of the working-from-home shift and the effects of the homeless.

This is a staggering difference to the RE agent landscape where vast differences in knowledge and performance seem to have almost no effect like the consolidation effects you can observe in almost any other industry. 

In my market I believe that the short term effects wont be much.

If there is mold, it will usually be A) on the subfloor exterior, joists, and insulation in the crawlspace, or B) in any areas of water damage/water leaks inside the walls, behind tile in bathrooms, etc.

Catching up on your posts, this one explains a lot about the new, new changes that will be going into effect.

Note the law was in effect nothing because a jurisdiction could have allowed this prior to the new law and must op In with the new law.  

I also let them know if there is any damage they will be charged for damages.  

I’m trying to understand if this situation is normal and if it's worth my time to pursue the tenants for the lost rent and damages.

At 40% expense ratio which is more realistic you effectively need the Gross Operating Income to equal 2% of the asset price.

If you get sued what is the likelihood they will win and what are the possible damages?