Tenants do this everywhere, I've never seen an exception (including myself when I was a tenant)4.

My cap rates are always lower since I take into account ALL my operating expenses:-property insurance-tax-maintenance/repairs (10% of rent)-HOA (if applies)-property management fees (10% of rent)-vacancy (depends on area between 10% to 20% of rent)Basically, when calculating cap rate I take into account all expenses except for mortgage principal and interest.

It's all the income minus all the expenses, except the mortgage.

That was an exceptional situation, that had many factors leading to that kind of discount

There are some exceptions currently in place for owners who occupy the house being sold short.

All utilities except for Electric (historical average $30-$50) and Extra Shared Storage Included.

Though I am not a fan of banks, I am certainly not a fan of those who do this type of stuff, with the small exception of when I end up getting that home for a huge discount!!!

If they are a great tenant (i.e keep the place clean and no problems except money) you might want to consider keeping the tenant and create a payment plan for the missed month.Could ask for a minimum/partial payment partial payment for December and then spread the amount owing across the remainder of the lease....benefit here is that you can ask for a higher minimum payment the next month since the rent will be slightly higher.

All utilities are paid by the tenants except trash and lawn care.

Years ago I investigated a gas explosion, a new bank building called because of a gas odor, the bank was evacuated except for a gas company employee and the bank manager and a leak confirmed.