I'm currently running a local carpet cleaning and mold remediation business, running a network marketing business, obtaining my real estate license, and a personal trainer.

In addition, I would think that a 'non refundable pet deposit' is for things that have to be done upon move-out of the tenant with pet: Flea-treatment, deodorizing, carpet shampooing etc - things that will have to be done, above and beyond normal move out, due to the tenant having a pet. 

The heat source in these units are as follows:1st floor rear: gas1st floor front: electric2nd floor rear: electric2nd floor front: gasThe first unit that we rented (before the carpet was even put in) was the 2nd floor rear and the second unit rented out was the first floor front. 

I don't want to get into it with a tenant who says "the carpet was stained when I moved in" or whatever they have to say.

And that means that I will not have carpet. 

Your carpet is getting worn, your roof is getting older and your not saving for future repairs and maintenance.

When the tenants move out and you and you replace the carpet, paint, etc, that money will be spent and then some.

There is red carpet on the floor that I do want to replace. 

Now you may paint and carpet or hold for more market exposure at your expense but you are adding something to get a higher price (market value). 

An inspector will give you some info about the condition of some items, but they aren't going to list all of the little deferred maintenance issues that may exist (worn/scratched counter tops, chipped sinks, worn carpet, evidence of prior plumbing leaks in cabinets, etc.).