@Estefania Concha Unfortunately your tenant is correct in the fact that you must have a "tenant at fault just cause" currently due to the tenant protection programs...normally this does not apply to single family residences owned by an individual. 

I am an investor that uses a combo of both, so I am curious as to your strategy.Investors often think that by moving property into LLCs, they are protecting themselves and their personal assets. 

The mortgage will be another layer of protection. 

That said having tattoos is not a protected class.  

Are there any suggestions on what needs to be defined in the lease regarding this and suggestions on whether increased monthly charge or an additional "pet deposit" is best for protection of our property?

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it.We have a 12 page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord.

Then you will also be able to act on any other opportunities you see and not have to wait to sell one property to buy another.Also if you are going to seriously get into RE investing, open a LLC to protect yourselves and put the properties in the name of the LLC. 

The thought of the LLC was because we want to protect ourselves as best we can.

With you being in a tenant friendly state you have the lower hand, the only way we can protect ourselves is to screen.  99% of the time when someone writes a post would you accept I already say no before reading but read anyway. 

We have not heard from the hotel and conference venue yet specifically, however, we've heard from relatives of some of our team members who are safe and said the damage is less than expected thanks to the floor protection systems installed post-Katrina.