In the city of Chicago, the local ordinance is so tough on landlords, in that there are various requirements from depositing the security deposit in a separate interest bearing account all the way to a procedure that has to be followed if you intend on not refunding the earnest money deposit.

I EXPECT that my tenants in C/C- properties will occasionally have issues that prevent them from paying full rent in a timely manner and I have polices and procedures in place that allow me to work with these tenants AND limit my losses.

If you're going to do this for the long-term, it's worth talking to a real estate lawyer and spending a few bucks to get it done properly until you know the procedure.   

The proper procedure to implement rental restrictions is to amend your declaration, which will include notice to, and voting among, the unit owners.

Chad,As you know I just know FL procedures.....It makes sense.

Unfortunately, it sounds like the seller of your property gave them much more leeway than most landlords, but now that you are the owner the best strategy is to follow any remaining terms of your lease and follow the legal procedures specified by your state.In the long run, this will seem like a little blip. 

If they don't want to go through the procedures to apply that I have made then they won't abide by the procedures and rules I have in the Lease agreement.

I just wasn't sure if there was more to it, or other procedures that were different from the buying strategy. 

So, do what you have to do- Don't even let them know you are upset and start on the eviction procedure.

I am a honest man and want to be sure I follow the proper procedures.