As with most investments, you won't ever have all the answers and I think a leap of faith is needed.

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.

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.  

I don't put a vast amount of faith in Tenants Credit Score.

In 3 years I will not have to explain why 2 people of this race got denied while this other person didn't and 9 months ago a person of this faith was rejected because.... oh who were they up against again and what was the difference again...

From our perspective, this is not about controlling rent," says Faith Lumsden, the director of code compliance in the Seattle Department of Construction and Inspections.

Her response is evasive and inconsistent, which are both flags that she is not dealing with you in good faith. 

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.  

I'll take it on faith that not every rental experience is like this one!

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.