Mortgage docs and deeds are kept in a safety deposit box.Rental properties have two physical folders: One for a tenant, the other for general property items that are not necessarily a bill. 

As I am responsible for the safety of my tenants I am in need of getting this person out of the house.

I ran very cash lean as I was acquiring, but only because I had the safety net of ~$50k in LOCs. 

If 80% of your PMs properties look awesome and you'll prioritize cash-flow and forgo some periodic maintenance...well...it might be a bad fit. 

No one is going to charge you thousands of dollars for a template, but you could thousands of dollars without the safety of a legally binding document. 

Which is right, as far as safety is concerned, or is this something I don't need to be concerned about?

In this section I provide my name and number (I manage all 5 SF rentals myself, remember) along with a statement which reads "Tenant will pay Landlord the first $250.00 of the cost to repair each conditiono in need of repair, and Landlord will pay the remainder, except for the following conditiosn which will be paid as follows:..." and then it goes on to discuss 4 conditions which are "Landlord negligence", "wastewater stoppages caused by roots/malfunctioning equipment", "health/safety issue not caused by Tenant or guest of Tenant", and "heating/AC, water heaters, water penetration".

As you reach levels that would damage you, I'd get another level of safety.

As everyone else has said you need to leave a margin of safety on top of your goal for profit.

But there are regulations of structure, safety, fire protection etc.