The bad news is that she would never qualify financially...I can give details if anyone needs them, but for the moment let's just say that she is very young and has already done damage to her credit report, AND she was unemployed when she filled out the application.

I give them a week to find out any problems they might have, but I make it clear to them that I will either fix the problems or note it as "previous damage" on their report with respect to their damage deposit.When there is a dispute, I often try and work out a solution.

If the carpet has already been damaged I believe you can proceed against him for the damages now. 

Tenant is charged a $250 fee and SD is returned minus the fee and any damage. 

Well, like everyone said; don't do deals this way.I mean I would still inspect the property for damages and hold back $ if needed for repairs. 

You can't keep it, hold it or sell to make up for unpaid rents, fees or damages.

@Daniel Fierros Everything that @Patrick Desjardins said plus:Legitimate Occupant or Squatter doing substantial damage (I've bought burn-outs from this)Governmental agency condemning the property and tearing it down (happened to a note investor within the last 6 months or so and he learned about it when I couldn't find the house he wanted to sell - the land was now a community garden)Note and/or mortgage improperly or illegally written or originated or not properly executed. 

As long as you have evidence she received and the damages you deducted are documented you are fine. 

I live in sc so water damage has occured.

This empty hat management company will just be in place to further secure the trust, where if a claim is ever filed where damages exceed it's insurance policy, this company can file bankruptcy.