Basically it needs to be removed and a wall needs to be restored.  

However I can't know the full extent until the walls are uncovered.

The Wall Street Journal publishes an article about aver tax prep costs every year.  

It's impossible to see within the walls or under a structure so to say "AS IS" in Washington state, could be costly in the future.As for a broker (as myself) selling or buying, I have to put a commission disbursement out so the whole world can see my earnings (IRS) 1099.

The landlord is also barred in any action brought by the tenant to recover the deposit from asserting any claim or raising any defense for retaining any of the deposit unless the landlord shows that circumstances beyond the landlord's control prevented the landlord from providing the statement within the twenty-one days or that the tenant abandoned the premises as defined in RCW 59.18.310.

If tenants are already paying the electric bill then I would switch to a heat pump or install baseboard or wall heaters. 

The MN standard lease only states normal wear and tear vs excessive damage.The large holes in the walls should be considered excessive but I was wondering if there was any kind of list that states what is normally considered excessive damages.thanks for your responses..

The implied warranty of habitability requires landlords to maintain their rental units in a condition fit for the “occupation of human beings.”86 In addition, the rental unit must “substantially comply” with building and housing code standards that materially affect tenants’ health and safety.87A dwelling may be considered uninhabitable (unliveable) if it substantially lacks any of the following:88• Effective waterproofing and weather protection of roof and exterior walls, including unbroken windows and doors.• Plumbing facilities in good working order, including hot and cold running water, connected to a sewage disposal system.• Gas facilities in good working order.• Heating facilities in good working order. • An electric system, including lighting, wiring, and equipment, in good working order.• Clean and sanitary buildings, grounds, and appurtenances (for example, a garden or a detached garage), free from debris, filth, rubbish, garbage, rodents, and vermin.• Adequate trash receptacles in good repair.• Floors, stairways, and railings in good repair.In addition to these requirements, each rental unit must have all of the following:• A working toilet, wash basin, and bathtub or shower.

I think this is fair and helps cover some of the costs associated with the pets, while hopefully retaining tenants longer.

Why don't you just give her a retainer, and have her take it out of that each time you need a new form or service.