(C) Criminal history is clean(D) Provide references and call the references2.

Landlord tenant law has its own version of ambulance chasers that would love nothing more than to make a few bucks off of a landlord that tried to read further into a tenants life than just criminal history, verifiable income, credit score, and rental history.Logically, we would all like to be able to make decisions based on personality differences, family size, possible income drops, or whatever gut feeling we have.

I'm not a Judge, nor a DA, nor a criminal attorney or any such attorney but I AM a Real Estate Broker, and what I understand of the law in the capacity as is required of my licensure, have experienced of it, and seen of it all, as well as read of it, the exact actions in discussion are way too close for my comfort in fitting the definitive. 

That way a financially stronger party can't crush the weaker party in seeking "justice".Lawsuits, disagreements, kerfuffles or whatever you want to call them are life sucking experiences with no winners.  

P.S: All the applicants have good credit scores, 3x income, and no criminal or eviction history.

And they can not buy a foreclosure for their personal benefit.As to your comment "I'm spending this week learning about foreclosure investing" the first thing to study is RCW 61.34.030 Criminal penalty.make sure you understand what that means.

Essentially, the criminal act of the third party was against you (more so than the tenant), because payment had been delivered to you and thus was "in your possession". 

If your lease agreement doesn't prohibit driving too fast in the residential area of the unit, you need to have a landlord attorney in your state look at the lease you're using, because driving too fast in a residential area may be a civil or criminal infraction or may even rise to the level of endangering the lives of others (neighbors).

"for $___/year, we provide "x" additional inspections")6) Liability policy that covers tenant intentional damage, criminal acts, and unpaid rent when skipped or evicted (through insurance provider that provides this kind of coverage)7) Financial reports per quarter (as whatever period makes sense to you) (this can allow you to advise the owner on the health of their portfolio)8) End-of-year review of the property to show conditions and suggested needed and preventative maintenance items 9) Preferred vendor discounts (requires a contract with a vendor to give better pricing)10) Eviction protection programs (this is usually done "in house" when you have sufficient number of units under your management to be able to offer this kind of program)11) Legal services (requires agreement with landlord attorney to provide those services at set fees)12) Professional photos option (for enhanced listing)13) Professional, licensed home inspection (this is more relevant for older homes to ensure safety and habitability are addressed) 14) HVAC filter replacement program (this can also be a program offered to tenants)15) Pet and ESA screening through pet screening vendor (helps to streamline and increase quality of screening)16) Client portal account for ease of communication, updates, reports, etc.

The biggest pitfall is when a landlord tries to be "nice" - non-paying tenants are literally stealing from you, treat them like the criminals that they are.To calculate reserves for vacancy costs We average about 2-3% vacancy across our portfolio, I use 5% as the number for reserves.