You're not being cruel.....you're being a business person and there is more wear and tear on a property the more people that live there.   

An turn inspection should be done to identify things that need to be FIXED.I can see from the pics things such as the dangling kitchen cabinet handle, a possible tear in the (Linoleum ???)

However, I was recently thinking that using the gross income of a student rental is unnecessary because it is a single family home so the expenses should be similar to that of a single family home (subject to more wear and tear as discussed below).  

Often times it's hard to price damages as they fall into the general wear and tear category. 

There will definitely be more wear and tear on the MTR - and you may want to require they have it cleaned every 2-4 weeks.

Tenant moved out and left countless large wall and nail holes / baseboard damage / drywall tears due to adhesive removal, etc. 

Also, make sure they are planning on doing a full tear off.

The only way to get rid of the mold is to tear the place down to the studs scrape and spray.

BTW why would you buy a tear down?

Do both options count the tear off or is the metal a go over?