I would make the property habitable whatever that might mean fixing plumbing and paint and concurrently I think you have to do lease violations and start eviction.

Fresh paint throughout, minor repairs, updated outlets/switches, backsplash tile in kitchen/bathroom.

No issues with @Costin I. deciding Steadily wasn't your best fit but you're painting with a very broad brush to say their insurance is only for total losses or that they're systematically over-insuring their properties to keep deductibles high. 

In the long run, it probably won't save you money unless they truly are ripping you off.  

Also, It is an older home so lead-based paint may come into play during a potential demo vrs a kilz paint over. 

Quote from @Chris Seveney: @Jeff S.Hmm High pressure sales to elderly women.Of course.100% TOTAL RIP OFF, 

They literally go out of their way to find the smallest chips, screw holes, stains, paint splash, paint bubble, ANYTHING.

Painting the walls to remove dust, dirt and nicotine marks.

I'm out a months rent, any might have to paint.  

You could easily find a light flip (carpet & paint) that also has the potential for a basement kitchen addition.