Know that success without conflict is unrealistic.

Do you see any conflict of interest here?

No conflicts there.  

You are not going to have 9 people sharing a space without conflict.

He probably did steal the tools, BUT you need to be aware that it's awfully easy to misplace stuff like that and then jump to conclusions... especially once suspicion/conflict has started to develop.

I have recently purchased investors training and my mentor teaches the same method you speak of but have had a lot of time online with conflicting strategies from different people and was just trying to get out there and make something happen.

To your point there is conflicting data, and even if you do look at data its easy to see that every area in the city is a crime ridden horrible place when looking at a map or data. 

Does anyone have any advice on how to deal with move-outs in a way that prevents conflict or is legal threats something that pops up every time?

Even though our State law says 15 days as noted above, this is only in the absence of conflicting local ordinances.

I also make all students sign roommate agreements stating that no matter of any conflict between roommates the same rent is always do.