If vetting tenants was 100% cut and dry, you could automate it and never have to make the decision yourself. 

Then again, my condo is in an extremely dry climate (Arizona), so not sure if that has anything to do with paint deterioration or discoloration.Regardless of which way you decide to go, you're going to need the paint, so drop it off and see what they do (if it's option 1 with only minor damage).Every time a tenant moves out, I budget about 30 minutes to fixing up minor paint problems.  

Since its in the basement it should be pretty cut and dry from there.

As you alluded to, keeping them in the property will mean two more items to worry about covering if they break, fail or even "seem to fail" as is the case with a dryer that "doesn't dry fast enough"... 

The reason I am being a stickler about this is because I can not get a GC in there until April so I am high, dry, and vacant in one unit for two months.Your help and wisdom is greatly appreciated!

Can you tell me again where you found the sock and the hair tie yesterday.

Leftovers from 1 job starts the next job and means zero paint left to dry out and waste.

the gal, a hairdresser, was cutting my hair 1 day. she told me they do cash in the envelopes for food, rent, savings, etc. said her dad raised her that way.I thought, "these people should meet dave ramsey!"

@Anthony Angotti, thanks for the offer, but I think this will be a rather large job..looks like bad dry rot most of the way around.

Make sure the basement is dry before you consider finishing it.