I have approved these types of tenants in the past and though most are solid some are careless with my rentals and cause more wear and tear or damage than I am comfortable with.

Are you able to inspect it to see if you "tenant" is still their and not damaging the place?

As for income, instead of $800 per month for a 3 bedroom you can rent it out at $350 per bed.The downside is you have more turnover, the students do more damage than normal, they have different expectations of amenities, and it's harder to get loans for large complexes.

The roof was fixed in a temporary manner to prevent further damage and active mold.

With regular inspections, I'm not as worried about using all of the security deposit for damage, but I have had the "by the way, I'm moving and I'm using my security deposit as last month's rent" situation thrown at me, despite the lease agreement stating the contrary.As a result, I have also gone to collecting last month's rent in addition to a security deposit upon move-in.

If you are working with a more proactive PM, you probably don't need to be as concerned, but tenants should know that they are being watched and will be held accountable for damages and/or other lease compliance issues.

Once you've found a replacement tenant, you should terminate the existing lease with the current tenant, do a walk-through, return the security deposit (minus any deductions for damage as appropriate), and then sign a new lease with the new tenant and collect a new security deposit.

If you're options are preventative replacing now or replacing next year and incurring unknown other damages due to it failing, then definitely get it done before it breaks.

The house had mold damage, termite damage, water damage etc.

I don't want to get up there with my chest puffed out banging on the doors demanding rent or threat an eviction.I have seen huge damages take place on a friends property.