I didn't allow smoking or pets.

"You don't want to shut off utilities,, your building would lose power for smoke detectors and that's not the way to do it..You don't deduct off their security deposit while they are living there.. that's to cover after they are gone..

Without that, you are shooting in the dark.

Dirty, smoke inside the property, property has strong smell of cigarettes.

@Richard Wormwood  I could see this.. just like the lender scams .the fake wholesaler  advertises a deal that is a smoking deal.. buyer not aware.. and sends in the 500 bucks to them perosnally .. never to hear from the wholesaler again.

Since you inherited this tenant, and if they are not doing anything you don't want done in the place that was permitted previously (indoor smoking, pets, etc), and paying on time, then consider it a gift - you have all kinds of leverage for raising the rent or booting them out without the lease.

If you don't want smokers sinking up your investment DO NOT TRUST THEM when they promise they will only smoke outside.  

This property is smoke-free and advertised that way.

But I earn TWICE what a HML earns.. so I take risk but I do far better than when I was a HML.. many of my deals I make over 100% APR compared to a measly HML at 2 points and 12%.. but my guys got smoking deals and they pay me off in 90 days so the total dollars are nothing.So you can go either way.. and I have about 20 clients like this. and I have no website and do not advertise and have more business than I can handle.. ask any HML about deal flow today...

Who pays for the smoke damage to the brand new couch??