My question is can I charge the tenant and security deposit even if the unit is in such terrible condition or should I give him a 30 notice to clean and get rid of that odor before I do my walk through?

This will help you price your rent and maybe increase it depending on what others are charging.

I've found many that don't charge an annual fee, and some won't even charge for an appraisal ... sometimes they don't need one to qualify you.  

This is definitely a criminal offense but getting the cops to file charges is difficult.  

If you are using a servicer, you may want to find your actual yield by using an adjusted monthly payment which removes the monthly servicing charge, i.e., the net payment to you.

They will charge for each service separately such leasing, emergency repairs, their fee only covers rent collection.

Just sounds like the branch president is doing a CYA.They want to show they didn't let you run wild so if something imploded later they wouldn't be seen as grossly negligent.Employees and board of directors at banks worry about their jobs and facing criminal charges if a bank goes belly up down the road.The bank is demonstrating prudence.  

You can either build that into your monthly rent charge or as I do back charge them for their water usage in the next months rent.While that doesn't sound too different it really makes a difference. 

The landlord, however, can charge a security deposit (but not a separate pet deposit or larger one because of the pet) and may still seek money from the tenant if there is any damage caused by the animal to the home." 

They pay out small interest rates to savings accounts and CD's while charging higher interest rates on loans paid out with other people's money to whom they are paying the lower rates.