I would honestly recommend looking into EXTREMELY short-duration type bonds if you want something that will give you a higher yield than a traditional bank, OR if the market scares you (even though there are varying types of bonds - some that are even backed by the full faith and credit of the US Government), you could put them into different types of no-penalty CDs or higher yield money market based accounts.

Have your own inspector check it out and make recommendations, follow them, and then you'll have made your good faith effort to repair the apartment back to a safe condition.  

It can't include normal wear and tear.Then, if they do everything on the list, you have to give them their full deposit back.You need to get this book:http://www.nolo.com/products/the-california-landlo...I've helped tenants get their full deposits back - even if they (or their boyfriend) left the place trashed - based solely on the fact that the landlord did not give them the proper notice of their right to an initial inspection.I don't think you'll get stuck with treble damages, because it doesn't appear that you have done anything in bad faith, so I wouldn't worry about that.  

And if she can make some kind of case for "bad faith" dealing, you'll be out punitive damages, too.She accommodated you, you told her the place was fine and it was obvious that you thought it was fine because you gave her her deposit back.Imagine a small claims court judge listening to you.  

Here we are required to make a good faith effort to find a new tenant, but if the current tenant moves out during the lease they are still financially responsible for the terms until a new tenant is found.

In San Francisco & Oakland, breach of quiet enjoyment in bad faith if proven can triple damages.Good luck & maybe do an inspection every 6 months and call it Spring & Fall seasonal checkups and write those into the lease and get them to initial, sign off on it - and give the right written notice would be a compromise until you get more comfortable with your ability to vet and place good tenants.  

Blind faith.

Especially if it gives your family faith to keep investing, ie their current home equity.

I always feel it shows good faith towards the tenant/landlord relationship.

To sum it up, and to prevent any incorrect information from being passed along, NJ says that before shut-off or delinquencies that affect service can occur, they must do a good faith effort to determine whether a tenant/ landlord relationship exists on the property, and notify owner.