Little more complicated than that but you get an idea.IRS has denied the RE status for W2 full time employees before.

I don't think I have ever heard of a mechanical lock failing (outside of abuse), but I hear about digital lock failures all the time.

They also said that if I owned it and tried to pull any substantial permits they would be denied because the zoning department would require the paperwork to be corrected.  

Some guy gets hit by a bus and in incapacitated for three months is not like someone who just refused to pay you.Lenders talk to lenders just like borrowers talk to borrowers, that's reality, it's done quietly and in confidence and is just human nature.

You see in real estate for some reason we seem to think that we can deny all business fundamentals and that somehow, our situation is different.

The Seller denied that any claims were ever made on the property. 

Like others have said, if you do not want to rent to them again, it is within your right to deny them a renewal.

If you make it too cheap, they'll abuse your graciousness.

You cannot deny the family because of the lead paint either, that's considered discrimination (you're refusing them because they have a kid) and is against the anti-discrimination laws of the state.

However, Insurance denied my legitimate claims saying burst pipe is not covered.