My suggestion is to understand how to read and interpret credit reports, because when you see a low score that might or might not be a sign of a horrible tenant.

Next, my interpretation of the text was that the tenant uses a drying rack on their counter, like I do, instead of using the dishwasher at all. 

In what I'm interpreting from your description is that you are looking recapture any money used from your HELOC which is exactly what a well executed BRRRR is intended to do. 

Case by case seems like a reasonable interpretation of one's rules. 

That IS the agreement.The way you interpreted is exactly what the deal was.

I think she's interpreting that constructive feedback in the wrong way.

And if we interpret it wrong?

You may have a justifiable reason for accepting a tenant with a credit score below your typical threshold, but you leave yourself open to the interpretation of an angry future rejected applicant or (hopefully it doesn't get that far) a judge.

That is his opinion and interpretation.

Tenants heard the "good news" from the government and they made their own interpretation of them.