Quote from @Theresa Harris: Unless you are doing an entire gut, you should be able to charge for damages in rooms that aren't being renovated.Rooms were painted by the tenant and carpet damaged.

I think that painting it Neon yellow to fix your problem was a brilliant idea.

Thank you in advance .Yes, you need to screen any occupant of the rental.When you rent to a business, the occupants will not care about your carpet, the paint, or the lawn.

@Sami GrenMaybe put up signage or paint something in the spot, eg “reserved”Either way, you need to have it marked out well

It adds value and you can depreciate it, and you can even raise rent. painting the walls would not be considered CapEx.

We painted all the walls and ceilings.

@Kenneth Peagler If cabinets are in decent shape I'd just paint them rather than replacing.

Last tenant left  with paint marks on carpet.It is not obnoxious, but it is visible.New carpet estimated at 1,800.00 versus 200.00 for cleaning.

Our initial concern was that if we did do that, then the next potential salon tenant would come in and want to still put their own spin/style into the place, and change everything again (paint, flooring, etc.). 

You may want to look at buying some houses that need a little TLC (paint, etc) and then selling on owner financing at slightly above the current value.