If a tenant trashed it, I wouldn't write it off just because the carpet is 30 years old.

I would get an attorney and have them write all this out for you so you both have everything in writing before something happens.

I would try and get something from Empire in writing (email) that you are OK and don't need anything.

The simplest way is to just write a flat fee for water / sewer into the lease as a line item.

That means you notify the tenant - in writing - that they are responsible for the full term of the lease or until a replacement tenant takes over, whichever occurs first.

However, it doesn't forbid the Seller from extending that tenant or signing a new lease with someone else.I would contact the Seller and ask them to put in writing that they will not make any changes to tenancy without your written permission.

I started to write up the partnership agreement and then she called to say, I want to this deal on my own, will you wholesale it to me?

The only exception to this for me would be if it is a multi family property, then I am doing what I need to do but if I could get a professional to tell me in writing it came from the Tennant that is moving out then the moving Tennant is paying out of their deposit.

The documents an experienced attorney write up for you will include language that will protect you.

Ask the downstairs tenant to record some video of it and write down when it happens.