If you are taking care of things, any punitive damages would zero or very small.

Also,  make sure your turn over costs account for the smoke damage.

If the tenant is dilly-dallying in paying the repair costs for (not wear-and-tear) damage for more than 1 week.

And you avoid things like damaged properties (guest insurance from airbnb or prop manager themselves cover that), evictions, collections, etc.   

After the fire in 2016 damaged or destroyed more than 2,000 buildings, 16,000 acres, with 16 lives lost, I think they are trying to be better about enforcement.

If forced to cure - and it will be a condition of remedy - the tenant can take action against you for damages from leasing an illegal property. 

With VRBO you there is no damage coverage or insurance unless you pay for it separately, the website and app are very clunky and you can't vet any guests - it's a crap shoot! 

Deposit will take all of other damages left. 

As there is only a one lane asphalt driveway that goes between the building and the east property line the contractor will have to operate his heavy equipment there and will hurt tenant access and definitely damage the asphalt.

All Contractors are subject to the lender’s determination that the contractors are qualified and experienced, have all appropriate credentials required by the state, are financially able to perform the duties necessary to complete the renovation work in a timely manner, and agree to indemnify the borrower for all property losses or damages caused by its employees or subcontractors.Multiple Specialized Contractors:Ø Since this is a limited repair/renovation program, no General Contractor is required.