Even if they don't exercise their right to buy, you keep the option consideration and you don't have the usual landlord hassles of tenants damaging property or calling you to fix things since they have "skin in the game."

Also, some state, including PA and MA require the accounts are open local and/or in interested bearing accounts.If you were in MA and didn't follow this law (and all its other requirements), the tenant can sue you for treble damages......so if you accepted $1200 that would be $3600 you would owe the tenant by court order!

When we get a direct hit on Miami, from a Hurricane, none of them will have enough savings to cover the damages.

Sewer backup causes thousands of damage, and smelled real great too.10. 

Yes we can, but if the damage is significant, it costs us about $2,000 to do this for a two-bedroom, one bath unit.

I always ask the seller what they are expecting to walk away from closing before i make an offer and i always ask them to disclose the damages that the property may have. 

FEMA will come in and assess the damage and maybe do blue tarp.

In particular, I'm curious to know if there's a particular set of circumstances or mitigation strategies that could make the increased risks (vacancy, credit, property crime/damage, etc.) worth it. 

Does anyone know if there is a Insurance that protects rentals from tenant damage over the deposit amount?

Hello Landlords and Property Managers of BP,I have been working on a research project for a while to look at how common and alternative screening methods predict different aspects of what I'm calling Tenant Performance (including Payments, Vacating, Maintenance, Cleaning, Interactions with Landlords, and Causing Damages).