If you want to sell for a decent price, you need to clean up the issues.2.

Keeping aside all the management issues during the time they were getting the house ready for rental again - simple things like paint and cleaning took 2 months before they put the house back on the market.

Other than the cost associated with turning a gutted attic into livable space, what other issues may come up?

@Kiersten Vogt there is 0 chance I would gamble with what around here is a $35-40k issue.

Option 3 is sue for full rent, other fees, and legal fees. 

Even though our lease mandates renters insurance, neither had it even though one had shown us proof that they had it (the other due to language issues we always pretty much knew they did not have it).  

Too many potential issues with the younger crowd.

I appreciate crime has increased in the areas recently, but I'd like to think the city will eventually address the issue. 

They escalated the issue to the national board of realty, prompting the listing agent to finally respond.

@Ashley Baldock, I would be careful about denying people with background issues that they DON'T have!