My draft as an addendum is as followsLandlord and Tenant agree that provided a history of good standing, no damages to the property, minimal wear-and-tear, and a satisfactory Premises Inspection prior to renewal, half of the security deposit will be returned to the Tenant upon decision and approval to extend the Lease Term for a Renewal Term.

I am asking this question as if we are in normal times - not the covid world we are living in now because we are being more flexible during this time...We charge $25 late fee is rent is not received by the 3rd and 10/day until the 10th when we post a 3 day notice.Many times if tenants contact us we will work with them to charge minimal fees.

As it will minimize the sting when you make mistakes.

It is another way to minimize risk. 

Should minimize the pulls and they'll understand why there's a dip on your number.

We did not go for a cash out which would have raised our interest rate significantly for minimal $$ back.

Paid off in 15 years with minimal down payment for this deal.

It can be the case that you have a great job and taking a minimal loss for a few years would not be the biggest deal.

I certainly see the benefits to the brrrr approach but with no experience I sometimes believe I should take a traditional approach to minimize risk and learn the ins and outs of purchasing, maintaining, and managing a rental home. 

Even if it does, the increase should be minimal and probably still worth it.