Same for appliance damage due to tenant negligence.  

During that time the borrower can be additionally damaged by losing the deal or having a finance contingency pass where earnest money is lost.

Create mutual respect and instill in tenants that their key obligation is to pay rent/utilities on time, take care of the property (keep it clean and without damages), and use the property only for which it is intended. 

The damage is lesser this time than last year, but the home will need to be sanitized and some carpet/drywall replaced.

I would keep part of the deposit to cover missed rent after taking out any damages.

However, if there are any serious amounts involved, you will end-up in small claims court seeking a judgement as the Rentalsman has no authority to force any payment from the tenant ... the most they can do is release the security deposit to the landlord with proof of damages or arrears.Just as you describe, we were once told it would be less of a burden upon us to absorb the damages and unpaid rent than it would be upon the {former} tenant to pay those amounts as it could put their ability to afford their present housing at risk.  

Our rational is as follows:We can command $30 - $50 additional rent for en-suite laundry;It is a differentiator in some of our markets (not have coin-op in student rentals goes a long way);Installing the laundry ourselves ensures it is plumbed correctly with drip/catch pans (plumbed to a floor drain) under the washers;Providing the machines cuts down on the damage to the building of tenants moving machines in-and-out;Using high-efficiency units cuts down on water consumption;appliances are depreciated over 5-years (in Canada).  

I reviewed the LA Rent Stabilization handbook and damage is clearly listed as a reason for eviction.

No insurance, $100k in damages, and the city will not offer the raze order?  

I'll charge 1.5x rent for units with cats just to cover any additional damage, and we plan to move towards 1.5x rent deposit in the future as we upgrade units as well.