Do you know what is causing them to no longer be paying rent? 

Inspections do vary from area to area, and inspector to inspector, but far more often than not, the owner is required to make repairs, even if it is obvious the tenant misused or intentionally caused the issue.

Loose electrical connections get hot, heat tends to cause things to melt and char if not worse

I wish you would have predicted this in 07 though and I wish I would have listened :).. this summer as I stated my personal opinion is we are seeing consumers push back on price increases in many markets ( Dallas for one).. so I think this run-up of appreciation is about to an end.. but I don't think it pendulum's to a free fall in prices... the mechanics that caused the great GFC and last melt down are not in play currently.  

They are much easier to photograph than colored walls, which can cause color casts.

For example, "Tenant agrees to pay for the entire cost of repair of damage caused by the Tenant's willful damage or negligence."

And even they cause me a little anxiety.

It has not caused an issue because I value the learning I had to do to complete the above mentioned items.

The maximum penalty is 25%.The late payment penalty won’t be charged if you can showreasonable cause for not paying on time.

They aren't getting any annual payment for doing the work which might cause friction.