A little background about me, I have just over 200 doors in my current portfolio and our company manages just over 250 doors for third party investors in addition to those. 

Of course unless your buying defaulted notes at the get go then again as Chris mentioned this type of fee should be handled up front.. and if it new origination your making and then they go bad.. in your foreclosures you can charge the borrower these fee's when they cure or add it to you opening bid and when someone buys it at the court house you get repaid..

Some offer it as an additional rider for more money.

Investigate what (if any) additional fees that they charge for handling evictions, and find out whether they go to small-claims themselves, or hire an attorney.

As someone who used to provide housecleaning services on their own time, in addition to being an acquisition specialist, I'd say if she has written terms for that or a website or service page stating that to agree to pay her.

To give you an idea of how we approach it, we assume the worst-case scenario right from the start is 9-12 months of no rent, $5,000 in legal fees, and an additional $5,000 in expenses to deal with moving their stuff, putting it in storage, and dealing with health code violations or NOV's from the city during the process. 

So it sounds like me you built additional equity into the home your living in now.

Your LTC leverage is also very similar to a bank construction loan but between origination fees and interest charges you will incur  ~$20,000 more in finance charges during the life of this renovation project.

Moving forward in my  commercial leases I will now include language making the placement of thermostats the landlords decision with additional language prohibiting the relocation. 

But there are many things that can be done to greatly reduce the chance.For example, many sponsors are audited which provides an additional set of eyes.