This topic has prompted me to go back and look at my own screening criteria documents to make sure they are crystal clear about this.

Otherwise, they're welcome to sue you and you'll let the judge decide what you should pay, which you will honor and promptly pay.Were you aware of any fee you should pay prior to the landlord asking you to pay it?  

Communication started out well initially but then regressed over the course of a year with said renter not replying to a text or a call promptly (think after two or three days maybe, even a week if that). 

Let her know asap what the new rent will be as this may prompt her to move in the fall instead of having him added.

Then once you collect the security deposit and lease from the buddy ... promptly return the security deposit to the tenant who left.That's what I would do.  

He did fight for a "prompt cure" meaning the back rent had to be paid in one year vs five.

I have no problem paying for mold inspection/remediation and commissioning this activity promptly.

Thanks for your prompt responses!  

Then we sent a final notice that we would be filing a claim in small claims court, attempting to garnish their wages, hiring a collection agency and doing everything we legally could to recover the money to pay for the damages, and they actually promptly paid the entire bill!

Nine times out of ten, your best and most effortless ROI on any SFR is going to come from minimal turnover and vacancies with a stable tenant who keeps the place reasonably clean and tells you promptly when stuff goes wrong, but doesn't demand immediate fixes.