So, you need to take some classes on entrepreneurism to adjust and expand your paradigm into "How much income will it produce / loss will it prevent?".

I chose a shade tree and few flowering shrubs.

I have now added a termination fee and all of my leases which helps protect against vacancy losses.

If the dwelling unit is considered home, then the amount of rental expense you can deduct is limited.You cannot report rental expenses that are more than your gross rental income, although the losses can be carried forwarded.Rules:The dwelling unit is considered home if you use a unit for the personal purpose more than the greater of:1.14 days or2.10% of the today days it rented to other at fair market value.If you meet the criteria above, which you will as this is your house, your property is considered home there are two scenarios:1.Home rented for less than 15 days: Do not report any income or expense.

I know I can withhold the loss in rent.  

I don't know for sure if your insurance will cover that but it would seem that loss of rent due to this incident could be considered an insured loss.If if you find legally that you are screwed, consider talking to your Mayor and city council. 

Usually, those that know me, would say I am never at a loss for words, however, having said that, all I can think of saying at this point is,...                                                  

It is a business of profit and loss.  

I really doubt that the amount is enough to insure against losses from pets.  

I agree with Troy, cut your losses.