@Ben - I'm sorry to hear the mess they made; unfortunately is not unusual for tenants to act like this (sometimes out of pure negligence and some other's out of life's circumstances - please note I'm not condoning their behavior) Steve is right; here in Texas (I'm in Austin) the landlord/property management company has 30 days in which to account - in writing - expenses due a tenant after move out.

For example, if a tenant murders his neighbor you will likely be named in the suit for negligent screening of tenants.  

Just saying, be reasonable and don't get hung up so much on liability issues, you will not be negligent leasing to a music teacher!

I was very surprised at this decision because I also have a clause in my lease that states the tenant is responsible for damages caused by their guests due to negligence.

tenant A loves dogs but the building policy prohibits pets. one day, tenant A notices thru the front window that tenant B moved in with 2 dogs (a pit bull mix and a german sheperd mix) with the PM present and no issue was apparently raised; landlord even pet and played with the dogs. tenant A feels betrayed and goes out and buys a yorkie. landlord finds out and issues notice of breach of contract and to vacate or restore the apt to its pet-free requirements.tenant A contronts landlord and demands explanation as to why tenant B has 2 big dogs but tenant A cant have 1 tiny one. landlord discloses tenant B provided proof that each of the 2 dogs are emotional support animals.tenant A asks tenant B why does she have 2 emotional support animals, and for a referral to a professional that could also recommend 2 or 3 dogs so he can keep his yorkie and get a playmate for his and maybe even the yorkie's 'emotional support' each.tenant B is insulted and files a HUD complaint that landlord shared that she needs emotional support (per Fair Housing Act, landlords may not divulge that a tenant has any disability to any third party).meanwhile, tenant C whose toddler was soon after mauled to death by tenant B's sheperd mix, has just won a case in California Supreme Court finding the landlord to be a statutory owner of the dog since it was accepted onto the premises simply based on a letter written by a 'pet therapist' without regard - and consequentially, with negligence - to the other tenants' safety and thus responsible for $2,000,000 in compensation to tenant C for the loss of precious human life, regardless of whether landlord was negligent or not, and regardless of whether animal was a service/support animal or pet.landlord, having lost his countersuit against tenant B for vicious 'support' animal's lethal actions, files claim for his homeowner's insurance to cover the $250 million he owes tenant C but claim is denied altogether on basis that building had a no pet policy and dogs were not declared and the pit bull mix, though recommended, was never even licensed.last but not least, landlord receives summons, subpoenas, etc from HUD and appears for trial in Federal Civil Court. judge finds landlord guilty of divulging that tenant has a disability and orders landlord to pay the statutory $16,000 for one county of housing discrimination,  plus 300,000 in actual damages for the complainant (and of course, her attorneys fees) for she is emotionally scarred for life!

If the old couple fall due to uneven floor and sue me for negligence, would my homeowner insurance pay for that?

I can only speak to my particular state and caution you not to engage in these activities, as at a base level what you are doing, were you to do it in my state, would subject you to the possibility of jail time.I will say that there is indeed a cause of action that a person can bring for relying on misleading and inaccurate statements of law; namely that of negligence.

A person can cause injury to themselves by their own actions (negligent or not) and still sue.

Your lease should also say that tenants are responsible for damages, so if their negligence caused the damage, you can charge them for it.

The leak in the ceiling is also due to their negligence.