You reward the tenant's bad behavior with a cash payment and then let them leave with a clean record so they can sucker the next Landlord. 

However, be aware that tenant behavior is going to be the driving factor in determining utility costs.  

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This post itself seems to display your willingness to ask questions and make well-informed decisions.

You may discover all the negative reviews are from disgruntled renters that were kicked out for bad behavior, which is exactly what you want!

Is this incorrectly displaying the property management company as the owner?

Every month that they get whacked with a fee might, it MIGHT reform their payment behavior.

Consider adding language that identifies nuisance behaviors that are cause for declaring a breach. 

This doesn't sound like a situation you could salvage with the current tenants, the pattern of behavior is established and it won't change.

Never buy a property without checking that the # beds/baths matches that on record (ie, dept buildings records, city/county asessor's/tax record details for the property, and/or certificate of occupancy).many city/county departments of building records will even display the active C of O on their website which typically spells out the # of stories, bedrooms, bathroom, and if a basement present, if it is full or partial, finished or unfinished. any work done would update the C of O (ie, a garage later added would show some sort of addendum file to the C of O).again, if occupants are 'using the basement for sleeping' that a big red flag for prospect buyers to now do their homework and find out if that's a violation/liability or not based on official records.