I've used an extra guest fee as insurance for parties to recoup some money for damages successfully.

Small Claims Court is also good, pro is you get an enforceable judgement so if anything is unclear such as damages amount that will be determined, cons are time and expense involved and once you win the big challenge is enforcing the order.  

The last time I did an insurance MTR it involved my work truck, an alternating current generator, 150 feet of extension cord, a sawzall, an appliance dolly, my 14 foot trailer, a house with fire damage and a $3000 Samsung French door fridge.Don't expect to make any money without doing any work.

We’re fine with them flushing toilet paper, of course, but tampons/shop wipes, etc. was not meant to be flushed and can damage our septic system according to the plumber.How would you handle this?

The kids can wreak havoc in a unit so more damage than the avg market-rate tenant. 

Were very hesitant to rent it out to such a large party because we did such a great job updating the home and we feel that all that work may get damaged in a short period of time.

Once they move in, it becomes the damage deposit.

Possible damage that didn't get fixed because the arbitrager wasn't able to make a go and they just walked away.There are all sorts of possibilities for problems.

Also, in the rental agreement, it says:"HOLD HARMLESS AND INDEMNITY: OWNER of rental property shall not be liable forany damages and/or injury to TENANT and/or their guest(s), or their personal propertydue to TENANT’S acts, actions or neglect.

Whether or not you have an LLC, if you are found to be grossly negligent, it could be you that is writing the check for the judgement, and depending on the state, it can be up to four times actual damage.