You can't change the behavior of a person.

I have transacted at least 5000 properties as a flipper developer and lender and I have had one instance of this. were someone recorded a mortgage 5 minutes before my loan went on record so when I got my title policy I was in second instead of first made a claim to my title insurer and they rectified it quickly and went after the bad guy criminally. 

Setting precedent and expectations as an owner may have allowed this behavior from them.2.

For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

Many lenders have specific guidelines regarding late payments, but some may still work with you if you've made up missed payments and have shown consistent recent payment behavior.

I know that certified mail is nesc for official notices like lease renewal, rent increase, notice about bad behavior etc but what about day to day stuff like repairs?

if I paid a poor tenant for their poor behavior, it would cause me to lose sleep.  

If they repeat the behavior then I would move to evict.

Your behaviors are belief driven, and if you think all the opportunity is gone, then your behaviors will mirror those beliefs.Hope that helpsGino

I think this is proven that even in ponzi criminal case, if asset has good valuation and the law is being done properly, we will get our money back as investor.