We'd need to pull permits to submeter the property, for example, and my understanding is it'd likely be denied due to not currently being to code.Has anyone ever dealt with this before?

Does your contract have a loan contingency that specifies the type of loan & allows you to cancel if you are denied such a loan?

It's only 4 months old, but I am finding that it has to be regularly drained and refilled due to how the guest use it or abuse it.

@Dee Mandrekar highly doubtful there's such a big difference between market rent and S8 rent.First off, the GROSS S8 amount includes specific amounts for all utilities - electric, gas, water, trash, etc.We do NOT recommend including utilities in the rent because S8 only pays a certain amount and the owner is then exposed to tenant abuse of utilities. 

I want to give them their holding deposit back and deny leasing to them.

My personal soapbox statement - Airbnb is an abusive spouse that slowly people are waking up to realize they are in a controling abusive relationship and they start to develop an escape plan (more platforms/direct website) so they are no longer relying on Airbnb.

I pointed out all of the issues and the contractor said they always lock things up and it is not his job to be the "policeman".Days later, I get a call from Jeremy who works for Loyds said, "they are denying the claim because a 6ft fence and a 24 hour security guard was not in place.  

Quote from @Denis Smirnov: Hello everyone,I'm a real estate investor based in Toronto, Canada.

Unless there is another person able to provide income and you can properly screen them, we would deny them.

The objecting scoring matrix that we created allows for somebody with a sub-600 score to still be eligible, they just don't gain as many points for being below that threshold... however, still, individuals still seem to be frequently getting denied based on bankruptcy or 6+ non-medical collections......