There are various strict rules about this process that are outlined in other various BP posts.

Your next step, assuming it is considered rent, will be out lined in your regulations.Definatly have all utilities in tenants name wherever legally allowed.

We interviewed over 450 residents living in Tacoma Housing Authority buildings and helped them fill out paperwork outlining their income and assets in order for the properties to qualify for a tax credit program.

I believe that's another perfectly acceptable solution and it's even outlined in section 3 of their documents.  

My advise is to immediately start getting the place ready to re-rent and advertise, and simultaneously get a lawyer (or yourself) to send an official letter outlining everyone's responsibilities and remedies.

Proper notice should be outlined in the lease - 24 hours is pretty standard.

It outlines the penalty for perjury in my state.

He seemed to like my answers and agreed to hire me.On our next phone call, he proceeded to outline his business and tax "plan".  

It outlines the key terms of the lease, and is signed by the tenant. 

As for repair of the leak under the floor, that may be difficult to prove it was caused by tenant negligence.Below is a link I found that outlines the tenant-landlord laws in your state.