For example all windows don’t open (all windows have new blinds) , wiring exposed under the sink, rotten wood , damaged shingles , unlevel sidewalk, exposed romex wiring in laundry rm, damaged siding , & no drain pan for water heater .

You cannot charge for smoking indoors... airbnb/vrbo do not care because there's no 'damage'.

You'll need decorative items, creature comforts like books and DVDs, linens and towels (including enough for your longest anticipated stay), bathroom items like shampoo and soap and toilet paper, and a monthly budget for re-supplies of these.I'd also recommend purchasing a vacation rental insurance policy, to cover the furniture items and other things which may get damaged by a guest. 

I would suggest that you also do a inspection of the unit and see how much damage the children are doing.

Are we entitled to pay for damages? 

Make sure you are asking for a good sized deposit, and when renovating, use materials that are hard to damage (LVP on the floors, higher sheen with the paint, higher quality faucets, maybe solid doors).

They are supposed to return tenants Security Deposit within 14 days if no claims for damage are submitted by the landlord.

After many years of brain damage most reputable sponsors move to the city's adjacent cities to invest their time and energy. 

Smells can do significant damage to the property that would be a violation of most lease agreements...and you end up losing good residents and keeping the bad ones. 

I was going to strip these units down to the studs anyways to fully rehab them, but it appears the fire has damaged some of the trusses in this unit.