Don't start like an amateur that is on the most probably path to failure.

What Padma is asking is what should he (I'm assuming this is a he) do now that the police were called.I'd suggest...nothing regarding this call.It was explained why they were checking on their property.Since it was the housing authority that terminated the contract (and again, I'm assuming it was terminated to end December 31st), I would contact them tomorrow to let them know that the tenant had not returned the keys or moved out as of January 1st and is now considered a "holdover" tenant because of this.This caseworker assigned to this tenant is very likely going to point out to them they are in danger of losing their voucher over their failure to vacate the property by the required deadline (if there was such a deadline). 

NOTICE IS HERBY GIVEN that because of the above dwelling’s condition and chosen remedy, substantially endangers the health and safety of the tenants and your failure to comply with your implied warranty of habitability by refusing to repair defects on the premises, in a proper and professional manger, as previously demanded of you, the undersigned tenant has elected to vacate the premises without penalty in accordance with California law.

Failure to declare = FRAUD!

Carpet and paint, and most of the appliances are fully depreciated and only the items aggravated by failure to report them can be justified in court.

I'm assuming you're mailing to high equity, absentee when I said wait 3 months before mailing calling.Protip: One of the biggest failures for people is the lack of good follow-up or lack of CRM.Just because a deal isn't a deal now, doesn't mean the relationship you established is not important.

This causes them to pay too much for properties, which is a certain recipe for failure.

That said, Failure to adhere to local rules for dissolving an LLC may make any potential creditors very angry.

I have these kits going now 10 years trouble free (the only failure was a tenant using bleach drop ins, which you should warn of in the onboarding).. 

Damn WSJ headlines set me up for failure :P