The perp should also be arrested for breaking and entering, criminal trespass, vandalism.

Can I put contingencies like, 1) need to pass city rental inspection(scheduling that will be tough with in 5 days).2) Satisfactory review of all tenants related document, lease, income, criminal check, employment, rent payment historyAlso any suggestion on what should I be looking for.

Make sure to screen them (credit/criminal checks and references) and make sure they can afford the rent. 

I was pretty comfortable with the fact that they were not criminals and usually at the University on scholarship.

@Jack B.ANYTHING, as you pointed out, can be faked.BUT... if you are doing that for an apt, you risk committing a crime by falsifying information.So, let's say a tenant has the following:- NO CRIMINAL HISTORY from the Report- HIGH CREDIT Score from various sources- Qualified and Verifiable Income from their Employer- NO EvictionsAfter checking all of that, they then submitted a FALSE 6 months bank statement?!

Lawsuit pending. 2018 Increased awareness of disparate impact of criminal history screening Fair Chance Housing Ordinance SMC 14.09.025 disallows use of criminal records in the screening process.

Our PM company recently mentioned that they had just found this amazing software that allowed them to do national criminal and eviction searches.... transunion smart move!

Go grab your signs and throw them away.Of, if you're willing to engage in criminal activities to make a buck, look for more profitable opportunities than bandit signs and wholesaling. 

If these guys are not all criminally charged I would be shocked

In addition, I would make sure you have created a rental criteria that outlines income and credit requirements as well as how you will treat those with a criminal background or eviction history.