You should do everything in your power during due diligence to prevent surprises but be prepared for it when it occurs.  

This would have it's pros and cons but as a landlord that lives out of the country, I cannot deal with having to handle any issues that may occur between the current tenant and a new tenant.

So if there's any sinking on the back wall where it previously occurred, contractor will have to come out for free.

Automatic termination of the lease will occur if someone is found occupying the house that has not signed the rules.

The documents should provide the owner's name and address, sometimes phone numbers and will also provide the address of the property where the eviction is occurring.

I've seen additions that were done with much better quality without permits by non-licensed workers, but the city and lawyers don't see it that way and any kind of incident that occurs will most likely find you at fault because the lack of permitted work. 

It's Possible that the State or Feds have an interest in the house if that occurs.

Noticeable foundation settlement has occurred with cracking/shifting.

How does this occur / who is eating this cost?

I inform prospects who submit the application and/or indicate that they will be submitting the application that, once they are accepted, they have X amount of time to sign the lease and pay the deposit (which occurs at the same time).