I would initiate the legal eviction process immediately.Also, if you had to evict a different tenant earlier and now you want to evict this tenant, I'd say it's time for you to review and tighten up your screening practices. 

Tenant claims that the faucet was leaking so he just tightened it up.

The issue with young students is that they are immature and can't take care of simple maintenance issues themselves, such as tightening a screw.  

Definitely looking to tighten things up a bit in terms of contracts and contractors.

The market seems to have tightened up...

Now what about this process would you suggest changing or tightening??

This is a cash or terms business.One tool is not enough.Situation - Free and clear pretty house ---> installment sale - private mortgage, low down, buy and hold or resell.Situation - no equity pretty house ---> sub2 or wrap or lease option assignment, exit rent out or lease 2 own or resellSituation - 20% equity pretty house ---> list it if licensed, sub2 plus noteSituation - 40% equity ugly house ---> wholesale flip or JV and buy it or JV with the seller (buy sub2 + note, own it, jv agreement, improve it with private money, list it, resell it, pay off former owner and private lender, make JV fee of 5% +)There are other tools but that is enough to get a strain on your brain. :)And just because you understand those tools, does nt mean you can persuade the seller to use one of them.Cash or terms. 

So, tighten up your business plan.

Definitely refinance it out especially if you can handle the higher mortgage and it won't put a strain on your finances, make sure you have lots of reserves, it is risky to some but I think a great idea

If keeping the rental will cause you a financial strain and being that you are in a boyfriend/girlfriend relationship I would sell.